Robinhood Ends 2021 With US$1.82 Billion In Revenue, US$3.69 Billion Net Loss

Robinhood Markets, Inc. (NASDAQ: HOOD) released on Thursday its fourth quarter and full-year 2021 financial results. The company posted US$1.82 billion in annual revenue, an increase from 2020’s revenue of US$958.8 million.

However, the firm saw a 266% increase in operating expenses year-on-year, ending at US$3.46 billion in 2021 from US$945.1 million in 2020. This is partly due to an increase in share-based compensation which totaled US$1.57 billion, driven also by the company’s IPO this year, compared to last year’s US$24.3 million. It also incurred losses from changes in the fair value of convertible notes and warrant liability amounting to US$2.05 billion.

This led to notching an annual net loss of US$3.69 billion compared to a net income of US$7.4 million in the previous year. Calibrating for financial items, adjusted EBITDA for the year came in at US$34.1 million, still down from last year’s US$154.6 million.

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For Q4 2021, the company generated US$362.7 million in revenue, marginally down from Q3 2021’s US$364.9 million but up from Q4 2020’s US$317.5 million. Still with operating expenses higher than its quarterly revenue, the firm ended with a net loss of US$423.3 million for the quarter. This compares to the previous quarter’s net loss of US$1.32 billion and previous year’s net income of US$13.0 million.

The quarterly loss translates to US$0.49 per share.

The company also ended the year with US$6.25 billion in cash and cash equivalents, bringing the balance of current assets to US$19.28 billion. Current liabilities ended at US$12.35 billion.

The crypto app also shared its outlook for 2022, toplined by an estimated less than US$340 million in revenue for Q1 2022. It also expects its annual operating expenses to increase 15%-20% next year, with the exception of a particular projected decline on share-based compensation expense of 35%-40% year-on-year.

Robinhood last traded at US$11.61 on the Nasdaq, down 6.45% on the day, followed by a sharp approximately 15% decline after markets closed.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.