• Robinhood reported $39 million in crypto trading revenue for Q4, a 24% decline from the previous quarter.
• The company also announced that its board had authorized the purchase of 55 million shares from a holding company for Sam Bankman-Fried and Gary Wang.
• Additionally, it canceled nearly $500 million of share-based compensation.
Robinhood Reports Crypto Revenue
Robinhood Markets (HOOD) reported $39 million in crypto trading revenue in the fourth quarter, down 24% from $51 million in the third quarter. The online trading broker overall missed both earnings and revenues estimates for the quarter.
Share Purchases & Compensation Cancellations
The company also said its board had authorized the company to pursue purchasing all or most of the 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022, and canceled nearly $500 million of its share-based compensation.
Rollout Of Web3 Wallet
The company noted that its Robinhood crypto wallet was rolled out to more than one million waitlisted users in 2022 after a beta version of its Polygon-based Web3 wallet was released in September.
Earnings Report Results
Overall for the fourth quarter, Robinhood posted an adjusted loss of 19 cents a share, ahead of the consensus analyst estimate of a loss of 15 cents a share, according to FactSet, on revenue of $380 million, below the analyst estimate of $396 million. Shares were up about 3% to $10.80 in after-hours trading on Wednesday.
Robinhood is scheduled to hold a call with analysts at 5 p.m. ET., providing further information about their financial results and future plans as they continue to grow their business offering with cryptocurrency products and services.