Robinhood said Thursday that it will no longer provide revenue guidance after the company posted results that missed Wall Street’s projections.
Robinhood’s stock fell sharply by about 9% in after-hours trading. The company reported a loss of $392 million, or 45 cents a share, on revenue of $299 million, which represented a 43% drop from the year-ago quarter.
The company was expected to post a loss of 36 cents a share on revenue of $355.8 million.
"We're seeing our customers affected by the macroeconomic environment, which is reflected in our results this quarter," CFO Jason Warnick said in a statement.
In a sign of even greater uncertainty about future results, Robinhood said it was changing the way it provided revenue projections by providing “certain limited purpose statistical and operational results on a monthly basis.”
“With this change, we no longer intend to provide revenue guidance,” the company said in a statement.
CEO Vlad Tenev said the company has “made huge strides against our roadmap,” citing the rollout of new products and services, including its much-anticipated crypto wallet.
Crypto trading has been a major revenue driver for the company, but Robinhood reported that revenue from that business fell 39% from the year-ago quarter.
The company reported results two days after announcing that it was cutting 9% of its workforce. Tenev cited a “rapid headcount growth” which “led to some duplicate roles and job functions, and more layers and complexity than are optimal.”