[Asia Economy Reporter Jeong Hyunjin] The US online securities trading platform Robinhood has released its fourth-quarter results for last year and first-quarter outlook for this year at levels below market expectations, causing its stock price, which has been declining for several months, to plummet further.
According to Bloomberg and other sources on the 27th (local time), Robinhood announced through its fourth-quarter results and first-quarter guidance that it recorded a loss of $423 million (approximately 510 billion KRW) in the fourth quarter of last year. This far exceeds the market's expected loss of $225 million. The average monthly active users decreased from 18.9 million in the third quarter of last year to 17.3 million in the fourth quarter. Annual revenue was $1.82 billion last year, an 89% increase compared to the previous year, but a net loss of $3.7 billion was reported.
The outlook is not optimistic either. Robinhood forecasted that its first-quarter revenue this year would be less than $340 million, a 35% decrease compared to the same period last year. Initially, Wall Street expected Robinhood's first-quarter revenue to be around $448.2 million, but the company presented a significantly lower forecast. Bloomberg reported that "Robinhood has fallen into challenges that will be difficult to overcome this year," describing the outlook as bleak.
As the forecast fell far short of market expectations, Robinhood's stock price plummeted more than 15% in after-hours trading. After its initial public offering (IPO) in July last year, the stock price rose to $70.39 in August of the same year but dropped to $11.61 on this day. The stock price fell more than 34% in January alone, bringing the market capitalization below $10 billion.
However, Robinhood also expressed belief in the potential of the cryptocurrency economy and announced plans to launch a cryptocurrency platform and start business this year.
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