![]() ![]() "I think we've shown that this is a resilient business," Tenev said Wednesday. A low interest rate environment and the GameStop ( GME) 'meme stock' frenzy ballooned usage among young retail investors during that time.Īs the investing environment has changed, Robinhood has emphasized new business lines, eventual profitability, and growth along with the financial needs of its user base. The company grew in hyper mode during the pandemic as it prepared to go public in 2021. In August, the company said it would cut another 23% of its workforce. Robinhood was one of the first tech companies to announce layoffs starting in April of last year as the markets began turning lower and interest rates began rising. So we think we're in a really good position," he added. "In March, when all the banking turbulence happened, our customers deposited $1.5 billion with us. We keep our customer cash liquid and we don't have the risk of asset-liability mismatch that banks have to manage," said Warnick. The company also plans to offer advisory services, as well as futures trading by year-end, pending regulatory approval. Tenev said customers have already invested over $500 million into their IRAs. In January the platform launched IRA accounts with a 1% match. "As we continue to roll out new products - that's just going to further diversify and really strengthen the revenue profile of our business," CFO Jason Warnick said during the call. Shares of Robinhood were up around 3% on Thursday. Monthly active users in the first quarter totaled 11.8 million, up from 11.4 million in the fourth quarter of 2022, but down about 25% from last year. Robinhood's adjusted loss per share came in at $0.57, a penny more than estimated. In the first quarter, the company reported revenue that grew 47% over last year to $441 million, beating Wall Street expectations for $422 million. The Menlo Park, Calif.-based trading platform, once criticized for its reliance on payment for order flow, has been aggressively launching features in order to grow revenue and ultimately reach profitability. ![]()
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