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Robinhood (HOOD) Third Quarter Earnings

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Robinhood Markets (HOOD) today announced earnings for the Q3 of 2022. The company achieved an adjusted EBITDA profitability, a quarter earlier than its plans, due to solid cost cutting and increasing revenues.

Net revenues for Robinhood Markets rose 14% to $361 million topping the expectations of $355.27M.

The company’s loss was $0.20 per share for a Net loss of $175 million. In the previous quarter, the Robinhood reported a net loss of $295 million, or $0.34 per share. The Wall Street consensus estimate was for a loss of $0.30.

Net interest revenue jumped 73% to $128 million.

Transaction revenues rose 3% to $208 million.

Cryptocurrencies transaction revenues dropped 12% to $51 million due to lower cryptocurrencies prices. Options transaction revenues rose 10% to $124 million while Equities transaction revenues rose 7% to $31 million.

Robinhood managed to reduce its Operating expenses by 12% to $535 million.

Compensation Share-based expense dropped 33% to $110 million.

Adjusted EBITDA was $47 million, an improvement of $127 million.

Net Cumulative Funded Accounts for Robinhood Markets increased by 60,000 to 22.9 million.

Monthly Active Users (MAU) for September 2022 dropped by 1.8 million to 12.2 million, due to risk-off sentiment in the capital markets.

Assets Under Custody (AUC) rose slightly to $64.6 billion, driven by deposits, cancelling the lower market capitalizations.

Deposits came up to $2.7 billion, in the past twelve months, Deposits were $18.0 billion.

Average Revenues Per User rose to $63 from $56 in the Q2 of 2022.

Cash and cash equivalents were $6.2 billion at the end of September, higher than the $6.0 billion at the end of June.

Hood introduced some special features during the quarter like options in cash accounts, advanced charts, instant withdrawals and a web3 wallet. Robinhood Markets is also planning to raise the yield on the cash for Gold members.

Robinhood added to its crypto listings, AAVE, XTZ, USDC, Stellar Lumens, Cardano, Uniswap, and Avalanche to its trading app.

Robinhood Price

Robinhood closed 4.36% lower today’s session at $11.40. HOOD stock has lost 35% in 2022 and 69% of its value in the previous 12 months. Robinhood has a market capitalization now of $10.49 billion. The 52-week trading range for the stock is between $6.81 to $38.17. Robinhood stock hit an all-time high of $85 on August 4, 2021.

Robinhood Markets (HOOD) technical picture remains bullsi as the price holds above all the major simple moving averages.

On October 10, Barclays raised Robinhood’s price target to $11 from $10.

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