The stock-trading app gave a gloomy revenue forecast on Thursday as it showed a decline in users.
In after hours trading, shares of Robinhood tanked 15%.
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The first quarter revenue is expected to be less than $340 million, down from the previous year.
In the third quarter, monthly active users were 18.9 million. The number was below estimates.
At the end of the fourth-quarter, net cumulative funded accounts totaled 22.7 million, in-line with estimates. The third-quarter had 22.4 million accounts.
A net loss of $23 million, or 49 cents per share, for the fourth quarter was wider than the 45 cent loss estimate collected by Refinitiv. In the final three months of the year, the company posted $363 million in revenue, slightly above analysts expectations.
In the first and second quarters of 2022, Robinhood will face its toughest comps from events like the GameStop short squeeze.
Since the public debut of the trading app, its stock has more than halved in value. Its market cap is less than $10 billion after its shares were down more than 34% in January.
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Line chart with 124 data points.The chart has 1 X axis displaying Time. Range: 2021-07-29 23:00:00 to 2022-01-26 00:00:00.The chart has 1 Y axis displaying values. Range: 0 to 80.End of interactive chart.The fourth-quarter revenue was $264 million. Options trading made up $163 million,cryptocurrencies trading added $48 million and equities contributed $52 million to transaction based revenue.
Since the second quarter of 2021. In the second quarter, revenue was $233 million and in the third quarter it was $51 million. Thursday's report shows that it continues to decline.
On an annual basis, Robinhood's assets under custody increased to $98 billion. The average revenue per user decreased by 39%.
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