The chart below shows how HOOD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HOOD sees a -1.86% change in stock price 10 days leading up to the earnings, and a +0.12% change 10 days following the report. On the earnings day itself, the stock moves by -0.44%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Q4 Revenue Achievement: Over $1 billion in revenue for Q4 2024, marking the first time achieving this milestone as a public company.
Significant Revenue Increase: Total revenue for the full year 2024 reached over $3 billion, representing a 58% increase from 2023 and doubling revenue from two years ago.
Market Share Growth: Market share increased by 30% year-over-year for both equities and options, indicating strong competitive positioning.
Robinhood Gold Card Launch: Successful launch and scaling of the Robinhood gold card, which features best-in-class rewards and user experience, contributing to customer engagement.
New Derivatives Business Launch: Introduction of a new derivatives business, including futures and event contracts, which has generated significant excitement among customers.
Negative
Revenue Decline Analysis: Revenue decreased by 10% in Q4 2024 compared to Q3 2024, indicating a potential slowdown in growth momentum.
Widened Net Loss: Net loss widened to $150 million in Q4 2024, compared to a net loss of $100 million in Q4 2023, reflecting increased operational costs and lower profitability.
Customer Accounts Decline: Customer accounts decreased by 5% quarter-over-quarter, signaling challenges in customer retention and growth strategies.
Rising Operating Expenses: Operating expenses surged by 25% year-over-year, reaching $400 million in Q4 2024, which may impact future profitability if not managed effectively.
Declining Average Revenue Per User: The average revenue per user (ARPU) fell to $50 in Q4 2024, down from $60 in Q3 2024, suggesting declining monetization of the user base.
Robinhood Markets, Inc. (NASDAQ:HOOD) Q4 2024 Earnings Call Transcript
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