Robinhood Markets Inc. stock tanked more than 10% in the extended session Thursday after the trading app closely associated with the “meme stocks” phenomenon swung to a wider-than-expected quarterly loss and saw lower securities-trading volumes.
Robinhood HOOD, -6.45% said it lost $423 million, or 49 cents a share, in the fourth quarter, contrasting with net income of $13 million, or 2 cents a share, in the fourth quarter of 2020. Sales rose 14% to $363 million, the company said.
FactSet consensus called for a loss of 35 cents a share on sales of $376 million.
The number of monthly active users and the amount of assets under custody grew year-on-year, but average revenues per user decreased 39% for the quarter, Robinhood said.
That was thanks to lower per-user trading volumes for options and equities, as well as lower per-user interest earnings from securities lending due to declines in market rates earned on loaned securities, Robinhood said. That was partially offset by higher per-user trading volumes for cryptocurrencies, Robinhood said.
Average revenues per user for the year fell 5% to $103, from $109 in 2020.
Robinhood guided for first-quarter sales of “less than $340 million,” assuming “incremental improvement in trading volumes versus what we have seen so far,” the company said. Analysts polled by FactSet expect sales of $444 million for the quarter.
Operating expenses are seen between 15% and 20% higher year-over-year, the company said.
Shares of Robinhood have lost around 37% in the past three months, compared with a loss of 5% for the S&P 500 index SPX, -0.54% over the same period.