Robinhood stock falls after earnings top forecast, company announces CFO transition

Robinhood (HOOD) banal fell 7% connected Thursday aft the trading level reported net and gross that topped forecasts and announced its CFO would beryllium leaving the institution successful the archetypal 4th of adjacent year.

Shares fell arsenic overmuch arsenic 8% successful aboriginal trading arsenic Wall Street analysts pointed to higher-than-expected operating expenses and arsenic crypto revenue, though strong, missed expectations.

In the 3rd quarter, Robinhood reported net per stock of $0.61, much than the $0.53 expected by Wall Street, according to Bloomberg data. Total nett gross tallied $1.27 billion, a 100% summation from a twelvemonth agone and up of forecasts for $1.2 billion.

A leap successful transaction-based revenues was fueled by cryptocurrency revenue, which roseate implicit 300% to $268 cardinal — though that fell abbreviated of the $287.2 cardinal expected. Equities gross accrued 132%.

"Our team’s relentless merchandise velocity drove grounds concern results successful Q3 and we’re not slowing down— Prediction Markets are increasing rapidly, Robinhood Banking is starting to rotation out, and Robinhood Ventures is coming,” Robinhood CEO Vlad Tenev said successful the net merchandise connected Wednesday.

Alongside its results for the 3rd quarter, the institution said that its CFO, Jason Warnick, would beryllium retiring adjacent twelvemonth and transitioning retired of his relation successful the archetypal quarter. Insider Shiv Verma volition instrumentality implicit arsenic CFO aft Warnick steps aside.

Shares of the Menlo Park, Calif.-based institution person surged astir 40% since joining the S&P 500 successful September and are up 280% twelvemonth to day arsenic the institution has go the S&P 500's (^GSPC) apical performer this year.

The stock's rally has been fueled by caller merchandise launches this year, ranging from tokenized stocks successful Europe to prediction markets and crypto staking, arsenic Robinhood aims to turn lawsuit wallet share.

Read more: Live sum of firm earnings

"I spot tons of companies copying from Robinhood," Paul Brody, EY planetary blockchain leader, told Yahoo Finance connected Wednesday, "offering these further services, integrating them unneurotic successful a precise bully idiosyncratic experience, and delivering them to their extremity customers."

Wall Street points to the explosive maturation of the platform's prediction markets launched past year. The work lets traders wager connected the result of large events, ranging from shot games to Nvidia's (NVDA) net results, the magnitude of the authorities shutdown, and bitcoin's year-end terms target.

"Prediction markets are truly connected fire," Robinhood CEO Vlad Tenev said connected Wednesday during the net call.