What happened
A mere two days after spooking investors with news of deep job cuts, Robinhood Markets (HOOD 3.60%) delivered another stinger. The company reported its first-quarter earnings after trading hours on Thursday, and in a see-saw session the following day, its stock closed almost 3% lower after rising by as much as 6.9% over the course of the day.
So what
Well, your stock would probably fall too if you reported dynamics like this: For the quarter, Robinhood's total net revenue suffered a 43% year-over-year decline to $299 million. At least the situation is getting better on the bottom line where the next-generation securities brokerage posted a $392 million ($0.45 per share) net loss, compared to the yawning $1.4 billion shortfall in the year-ago quarter.
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Neither line item met analyst expectations. On average, prognosticators were expecting the financial services purveyor to earn nearly $356 million in total net revenue and book a per-share net loss of only $0.36.
Robinhood quoted its CFO Jason Warnick as explaining that "We're seeing our customers affected by the macroeconomic environment, which is reflected in our results this quarter."
NASDAQ: HOOD
Key Data Points
Now what
Robinhood provided selected guidance for 2022, but it wasn't necessarily illuminating. The company said its operating expenses (which exclude share-based compensation) are expected to rise by 2% to 5% on a year-over-year basis.
While this doesn't shed a great deal of light on how the company might perform over the course of the year, it does indicate how much it might be saving with those job cuts; the previous guidance forecast 15% to 20% growth in costs.
