By Yasin Ebrahim
Investing.com — Robinhood reported Wednesday a narrower than expected loss in the third quarter despite revenue that fell short of Wall Street estimates as cut costs helped boost performance.
Robinhood Markets (NASDAQ:) rose 4% in afterhours trading following the report.
The company of $0.20 per share on revenue of $361 million. Analysts were expecting a loss of $0.29 on revenue of $355.6 million.
The narrower loss comes as the company highlighted the progress made on its cost reduction initiatives, with operating expenses down 12% sequentially to $535 million.
The beat on the top line, meanwhile, was helped by growth in options and equities revenue that offset weakness in cryptocurrencies.
Monthly active users fell 1.8 million sequentially to 12.2 million for September 2022, as “customers continued to navigate the volatile market environment,” the company said.
Looking ahead, the company said total operating expenses, excluding share-based compensation, for full-year 2022 would be in the range of $1.69 to $1.71 billion, down from a prior estimate of $1.70 billion to $1.76 billion.