Robinhood stock jumps on surprise Q4 profit

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Shares of Robinhood Markets (HOOD) are jumping in after-hours trading. The fintech company reported fourth-quarter results that topped analyst estimates on both the top and bottom lines. Earnings per share of $0.03 was better than the ($0.01) analysts were expecting. Revenue of $471 million topped estimates of $457 million.

Yahoo Finance's Josh Schafer, Alexandra Canal, and Pras Subramanian discuss the report.

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Editor's note: This article was written by Stephanie Mikulich.

Video Transcript

JOSH SCHAFER: Robinhood swinging to a profit here in their most recent quarter. That's sort of the standout from this release. Also got revenue coming in at $471 million that beat the Street's estimates of $457. Crypto revenue coming in a little bit above. But again, I think, guys, the key thing driving the stock here is going to be that earnings per share coming in positive. Earnings per share coming in at $0.03. The Street had been expecting maybe a $0.01 loss. They lost $0.20 in this same quarter or about $0.20 in this same quarter of last year.

So really just for a company to-- that has been sort of at least the stock hasn't done great, right? For a company to basically consensus beat on things like revenue, beat on profits, have those crypto revenues up, which is always interesting to see, users not down significantly from a year prior, down about 4%, it just seems like an overall positive report for Robinhood from what investors wanted to see.

PRAS SUBRAMANIAN: What? What? S&P up 20% not counting today and the last like, eight weeks, and plus you have crypto kind of rallying. I'm not surprised that there's more traders coming on board, especially retail-- retail guys who want to get in on there and start getting in on the action, getting in on those-- those nice gains. So I'm not surprised to see that. It's good for them. And I know you mentioned the media efforts that they're doing as well, right? So that's part of the game?

JOSH SCHAFER: They highlighted here other revenues increased 30% coming in at $35 million, which again, when we're talking about quarterly revenue of $471 million, $35 million is not necessarily a small number, right? That's a relatively decent percentage there or a percentage. And other revenues is highlighted by their gold subscriptions and also their investments in Sherwood Media. They're building out a little bit of a finance media arm over there. They just had some big announcements this week on new media reporters that they'll be adding. So I think that will be an interesting place to see if they continue to grow revenue there and sort of turn a little bit of a media business going also on that app.