Shares of Robinhood Markets (NASDAQ:HOOD) gained in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at -$0.03, which beat analysts’ consensus estimate of -$0.62 per share. Sales increased by 47.5% year-over-year, with revenue hitting $441 million. This beat analysts’ expectations of $426.77 million.
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Robinhood saw its Net Cumulative Funded Accounts add on another 120,000, which brought the total to 23.1 million. Meanwhile, Monthly Active Users saw an even larger jump, adding another 400,000 to reach a total of 11.8 million.
Robinhood saw its assets and deposit figures surge as well. Its Assets Under Custody figure shot up 26% to reach $78 billion. A good chunk of that gain, however, was due to gains in value from the stocks and cryptocurrencies. However, some of that was just customers adding to their accounts; total Net Deposits added $4.4 billion total, which makes for a growth rate of 29% compared to the end of 2022. Robinhood even got more out of the deal itself, with its Average Revenue Per User figure going from $66 at the end of 2022 to $77 in the first quarter.
Overall, Wall Street has a consensus price target of $12.59 on Robinhood Markets, implying 38.81% upside potential, as indicated by the graphic above.
