The small-dollar trading boom that enthralled Wall Street a year ago may have run out of steam, as evidenced by the wider-than-expected loss and 888-282-0465 888-282-0465 888-282-0465 888-282-0465 888-282-0465 888-282-0465 888-282-0465 888-282-0465 from retail broker Robinhood.
The company's shares were trading at all-time lows after hours.
One of the key players in last year's meme stock saga was Robinhood, with retail traders signing up for accounts and helping drive rapid moves in stocks. It was difficult to compare the first quarter with the same period in the previous year.
The company reported compared with what Wall Street was expecting, based on a survey of analysts.
The company's loss narrowed to $392 million, or 45 cents per share, for the three months ended March 31, from a loss of $1.4 billion, or $6.26 per share, a year ago. Revenue fell from a year ago.
The company said its monthly active users fell to 15.9 million from 17.7 million in the year ago period and 17.3 million in the previous quarter. The company's average revenue per user came in at $53, down from $137 a year prior and $64 in the previous quarter.
Payment for order flow is the main source of revenue for the brokerage. Though trading is free from the customer's perspective, Robinhood earns a spread on the trades it sends to large trading houses.
New products and features have been introduced by the company. The company said in March that it had expanded trading hours.
Earlier in April, the company rolled out a new service for customers. In the first quarter, revenue from equity trading was $36 million more than revenue from the other side of the coin. A year ago, those numbers were $133 million.
The biggest area of revenue was $127 million, down from $198 million a year ago.
It is also watching its costs. On Tuesday, Robinhood said it will cut its full-time workforce by 9%.
The company said it now expects operating expenses to go up between 2% and 5%. The previous guidance called for an increase of 15% to 20%.
The stock has struggled to find traction since it went public in July 2021. It was trading at $10 per share on Thursday.
The full press release can be found here.
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