Robinhood (HOOD, Financial) experienced a significant drop in its stock price, falling nearly 16% to $23.72. This decline followed the release of its third-quarter earnings report, which revealed several key metrics that fell short of analyst expectations.
The company reported an EPS of $0.17, slightly below the anticipated $0.18. Its net revenue stood at $637 million, missing the forecasted $663.5 million. Monthly active users were reported at 11 million, which was lower than the expected 12.26 million. Revenue from transaction-based activities totaled $319 million, while analysts had predicted $333.2 million. Revenue from cryptocurrency transactions was $61 million, underperforming the forecast of $71.8 million. Additionally, net deposits amounted to $10 billion, also missing the estimate of $10.67 billion.
On a positive note, assets under custody at the end of the third quarter were slightly higher than expected, at $152.2 billion compared to the anticipated $151.27 billion. Robinhood projects its full-year operating expenses to be in the range of $1.68 billion to $1.96 billion, aligning closely with the analyst forecast of $1.91 billion.
