Robinhood Stock Falls 12% After Company Posts $423M Loss

The company had seen a boost in tech and administrative expenses that caused its results to lag.

The brokerage recorded revenue of $363 million for the October through December period. It was a 14% increase.

Robinhood saw an 89% jump in revenue for the year, up to $1.82 billion – an increase from $959 million the previous year — and the net loss for the year was $3.7 billion.

The results were below analyst expectations, though the brokerage last year had experienced a momentum in its options and crypto trading business. Investors had been dabbling in riskier and more speculative trading strategies.

In the fourth quarter, the company had seen revenue tied to stock trading fall 35%, hitting $52 million, down from $80 million.

Robinhood had previously done well during the COVID era. Investors with nothing but time had begun trying out the service and eventually boosting the site’s numbers to 22.7 million customers. That was a huge increase from 12.5 million in 2020.

Robinhood was doing well in the beginning of 2021, particularly in the throes of the “meme stock” phenomenon when things like GameStop and Dogecoin cryptos were doing exceptionally well. But it didn’t quite keep that up through the year. The company saw a slowdown in revenue as customers didn’t trade as much, and cryptos didn’t do as well.

PYMNTS wrote recently that Robinhood’s 2022 outlook includes plans to expand in several fields such as helping people invest in the long-term, with tax-advantaged retirement accounts set to debut sometime this year.

See also: Robinhood Looks to Expanded Products, Crypto Services in 2022

In addition, the company has plans to invest in spending and savings products for day-to-day spending to help people build a portfolio.

And it wants to make more money-moving plans, with an idea for instant debit card deposits and withdrawals set to come out in the next few months.