Robinhood Markets, Inc. (NASDAQ: HOOD) announced financial results for the fourth quarter and full year 2023, and investors are responding positively to the news.
Topping analyst expectations, currently, Robinhood is trading over 12% higher than its market close price from yesterday.
The company reported total net revenues in 2023 of $1.9 billion, up 37% year-over-year, including $471 million in Q4 which delivered a 24% increase versus same period year prior.
Vlad Tenev, CEO and Co-Founder of Robinhood, described 2023 as a strong year pointing to an increase in trading market share and their global expansion.
“… And we’re off to an even better start in 2024, as we’ve already brought in more Funded Customers and Net Deposits through the first half of Q1 than we did in all of Q4 2023,” said Tenev.
Earnings per share stood at $0.03 or net income of $30 million for the quarter. This compares with a loss of $166 million or EPS of (0.19) a year prior in Q4.
Operating expenses decreased 17% year-over-year to $445 million.
Funded customers increased by 420 thousand year-over-year to 23.4 million.
Assets under custody improved by 62% to $102.6 billion. Robinhood said this increased because of net deposits and higher equity valuations.
Robinhood is buying back shares, which caused cash to decline.
Robinhood did not focus much on crypto trading but more on traditional broker operations.
The company provided the following outlook.
“Our 2024 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in our existing businesses. Taken together, we expect both GAAP total operating expenses and Non-GAAP combined Adjusted Operating Expenses and SBC for full-year 2024 to be in the range of $1.85 billion to $1.95 billion.”