Robinhood HOOD Earnings Analysis

Financial Analysis of HOOD

Revenue Analysis

Total Revenue for HOOD presented fluctuations over the periods observed. At the end of Q4 2023, Total Revenue was at $471 million, a significant increase compared to $467 million in Q3 2023 and earlier figures of $486 million in Q2 2023 and $441 million in Q1 2023. Operating Revenue showed similar trends. Gross Profit for Q4 2023 was notably non-existent due to the high cost of revenues, whereas it was positive in earlier quarters such as $369 million in Q3 2023 and around $365 million in the first half of the year.

Cost Management

HOOD’s Cost of Revenue was highest in Q4 2023 at $471 million compared to $98 million in Q3 2023 and approximately $99 million in Q2 2023. Operating Expenses saw a significant decrease in Q4 but were high in Q3 at $442 million. Total Expenses peaked at $942 million in Q1 2023 and decreased thereafter.

Profitability Analysis

EBITDA was positive at $47 million in Q4 2023 and $35 million in Q3 2023, with a drastic negative in earlier quarters. Operating Income was reported at $30 million in Q4 2023 but was negative in earlier quarters such as -$73 million in Q3. Pretax Income shows a similar pattern while Net Income turned positive at $30 million at the end of 2023 from significant losses in prior periods.

Cash Flow Indicators

HOOD’s Reconciled Depreciation stands at $17 million in Q4 2023, slightly lower than the earlier quarter’s $19 million. This indicates a relatively consistent investment in asset depreciation.

Taxation

The Tax Provision was negative at -$1 million in Q4 2023, reflecting a tax benefit, contrasting with a $10 million tax provision in Q3 2023. The Tax Rate For Calculations remained consistent at 0.21 across the periods. The Tax Effect Of Unusual Items was significant at times, such as a -$840,000 reduction in Q4 2023.

Shareholder Metrics

Diluted EPS and Basic EPS were both at 0.03 in Q4 2023, improving from negative values in earlier quarters. Diluted Average Shares stood at approximately 883 million shares in Q4, showing a slight decrease compared to earlier quarters. Net Income Available to Common Stockholders aligned with reported Net Income values, evident in the recovery at $30 million in Q4 2023.

Conclusion

Over the last three quarters, HOOD experienced a significant recovery in terms of profitability and revenue stabilization. Cost management shows efficacy towards the year’s end, with reductions in operating expenses and better managed costs of revenue. Revenue analysis indicates a stabilization in operating revenue moving forward. Shareholder metrics reflect a positive turn with improvements in EPS and a stable share count, suggesting a potentially rewarding future for shareholders if current trends persist.