On Wednesday following the end of the markets, Robinhood disclosed its financial results for the fourth quarter. The American FinServ company claimed higher fourth-quarter sales as a result of the income surge.
In the final quarter of 2022, Robinhood’s net interest revenue increased by 165% to $167 million. However, due to cautious retail traders in the face of choppy market circumstances, transaction-based revenue fell 30% in the quarter. Numbers specific to cryptocurrencies showed a 24% drop to $39 million over that time.
In addition, the net loss in the fourth quarter of 2022 decreased to 19 cents per share. For comparison, the same price per share in 2022 was inflated to 49 cents. In total, the business generated $380 million in revenue over the aforementioned three-month period, up from $363 million the previous year.
Shares of Robinhood were up 5% during after-market trading and were now trading at $10.47.
SBF’s Shares To Be Repurchased By Robinhood
Apart from the company’s financial stability, the research also made another significant discovery. The shares that SBF purchased from Robinhood in May of last year may now be repurchased, according to the board of directors. Jason Warnick, the chief financial officer, said,
“Our Board authorized us to pursue purchasing most or all of our shares that Emergent Fidelity Technologies bought in May 2022.”
Sam Bankman-Fried of FTX and Gary Wang, a former CEO, co-founded the company known as Emergent Fidelity Technologies. Last week, the business filed for Chapter 11 bankruptcy protection. Warnick continued,
“We’re prioritizing to make sure we get these shares free and clear of any claims.”
The CEO went on to claim that the proposed share acquisition demonstrated the management teams and board of directors’ “confidence” in the company.
Bankman-Fried has repeatedly argued that he should keep ownership of the shares to pay for his legal costs even though Emergent was the firm that held the Robinhood shares. Nevertheless, the assets were taken over by federal authorities last month.
In addition, FTX spent $20.3 million in consulting and legal expenses to the attorneys during the first few months of its bankruptcy, according to information from recent court filings.
