Robinhood falls after beating expectations on profit and revenue

Investing.com -- Robinhood Markets Inc (NASDAQ:HOOD) was falling after-hours despite beating expectations with a surprise profit. 

The app-based brokerage reported second quarter earnings per share of 3 cents, which beat expectations for a loss of 1 cent a share. Revenue rose 52.8% from the same period last year to $486 million. That also beat the consensus for revenue of $472.9M.

“In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company,” said CEO Vlad Tenev. “Guided by our bold product roadmap we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better."

Shares were down 7% late Wednesday but are up 52% so far this year.

Monthly active users dipped 1.0 from the first quarter, to 10.8M. But assets under custody rose 13% from the first quarter to $89 billion, driven by higher equity valuations and growing deposits.

Robinhood said its expense outlook is improving from the guidance it gave with first quarter earnings. It expects GAAP total operating expenses for full-year 2023 to be in the range of $2.330B to $2.410B, an improvement of $45M at the midpoint of the range from its earlier outlook.