Robinhood Markets Inc. (Nasdaq:HOOD) has become something of a lightening rod in the marketplace since February of last year. To advance the story, the company just announced financial results for the fourth quarter and full year ended December 31, 2021, including total net revenues for the quarter increased 14% to $363 million, compared with $318 million in the fourth quarter of 2020, and for the year increased 89% to $1.82 billion, compared with $959 million for the year ended December 31, 2020.
According to the release, transaction-based revenues for the quarter increased 12% to $264 million, compared with $235 million in the fourth quarter of 2020, and for the year increased 95% to $1.40 billion, compared with $720 million for the year ended December 31, 2020.
Robinhood Markets Inc. (Nasdaq:HOOD) bills itself as a financial services platform that pioneered commission-free stock trading with no account minimums and fractional share trading.
The firm is focused on providing retail brokerage and offers trading in U.S. listed stocks and Exchange Traded Funds, related options, and cryptocurrency trading, as well as cash management, which includes debit cards services.
As noted above, HOOD just announced financial results for the fourth quarter and full year ended December 31, 2021, including total net revenues for the quarter increased 14% to $363 million, compared with $318 million in the fourth quarter of 2020, and for the year increased 89% to $1.82 billion, compared with $959 million for the year ended December 31, 2020.
“We had a momentous year, nearly doubling the number of customers on the platform and making critical investments in our team and infrastructure to support growth,” said Vlad Tenev, CEO and Co-Founder of Robinhood Markets. “This year, we’ll expand our ecosystem of products that make Robinhood the best place to start investing and build wealth for the long term.”
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -30%.
At this time, carrying a capital value in the market of $10.6 billion, HOOD has a significant war chest ($10.2B) of cash on the books, which must be weighed relative to virtually no total current liabilities. HOOD is pulling in trailing 12-month revenues of $1.8B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 14.2%. As more color becomes clear on the name, we will review the situation and update our take.
