Robinhood losses proceed in Q3 as firm appears to be like to UK, EU growth

Be careful UK and EU, right here comes Robinhood.

Whereas US primarily based neobroker Robinhood continued to disappoint buyers with one other poor quarter in Q3 2023 – Robinhood shares had been down greater than 8% in After Hours buying and selling after the outcomes had been launched – the corporate’s headline in its press launch said: “Firm plans to launch UK Brokerage operations and EU Crypto buying and selling within the coming weeks.”

First, to the outcomes.

Robinhood (NASDAQ:HOOD) reported that Q3-2023 Revenues got here in at $467 million, which was down 4% from Q2 ($486 million). However Robinhood’s basic issues run deeper than that, with Web Curiosity Revenues ($251 million) making up greater than half (54%) of Robinhood’s whole Revenues.

Regardless of its troubles and lack of ability to truly generate profits, Robinhood has continued to be excellent at attracting shopper belongings. Property Underneath Custody (AUC) elevated 34% year-over-year to $87 billion (though down from $89 billion as on the finish of Q2), primarily pushed by continued Web Deposits and better fairness valuations. With the present excessive rate of interest atmosphere, Robinhood has been in a position to cowl its dwindling Brokerage and Crypto buying and selling associated Revenues with curiosity.

In its Brokerage enterprise, Robinhood mentioned that Transaction-based revenues decreased 11% year-over-year to $185 million.

  • Choices was unchanged at $124 million.
  • Equities decreased 13% to $27 million.
  • Cryptocurrencies decreased 55% to $23 million.

On the underside line, Robinhood posted a Web lack of $85 million, in contrast with a web lack of $175 million in Q3 2022.

In all probability extra attention-grabbing to the UK and EU primarily based on-line buying and selling business was, as famous above, Robinhood’s important headline that it plans to broaden quickly within the UK and EU. Particularly, in itemizing its important progress alternatives, Robinhood gave three factors, two of which needed to do with oversees growth:

  1. With an skilled crew in place, Robinhood mentioned it would quickly launch brokerage operations within the UK. (Again in July FNG had reported that Robinhood was staffing up within the UK, in preparation for a UK launch within the coming months.)
  2. As one other step in international growth, it’s also planning to launch crypto buying and selling within the EU, following the UK launch.
  3. Robinhood is continuous work to construct futures buying and selling, aiming to deliver the intuitive cell expertise that prospects know from Robinhood to the business.

Robinhood’s full Q3 2023 outcomes launch might be seen right here.