The company whose easy-to-use trading app helped bring a new generation of investors to the market said Thursday that its revenue rose 14% in the fourth quarter from a year ago, less than half its growth rate in the summer months.
The company also warned that revenue in the current quarter could sag sharply from a year earlier. The forecast was weaker than
The
Robinhood’s business does best when people use its app to trade often, because it makes money by routing their orders to market makers and big trading firms. That wasn’t a problem in the first quarter of 2021, when hordes of smaller-pocketed investors banded together to drive shares of
The question is whether traders will trade as much on their phones now. Conditions may get only tougher for markets as the
Since the start of 2022, Robinhood has seen customers making fewer trades and in smaller amounts, Chief Financial Officer
“It's too soon to say” whether that ends up becoming a sustainable trend, he said. But the company said its revenue may total less than
Robinhood’s stock has been steadily falling since touching
“Let's not sugarcoat it, we've been disappointed," Robinhood CEO
But he said the company is making investments to grow over the long term, and it expects costs to grow more slowly going forward.
“I've never been more optimistic" about the future of Robinhood, Tenev said.
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