Q3 Earnings Roundup: Robinhood (NASDAQ:HOOD) And The Rest Of The Financial Technology Segment

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the financial technology industry, including Robinhood (NASDAQ:HOOD) and its peers.

Financial technology companies benefit from the increasing consumer demand for digital payments, banking, and finance. Tailwinds fueling this trend include e-commerce along with improvements in blockchain infrastructure and AI-driven credit underwriting, which make access to money faster and cheaper. Despite regulatory scrutiny and resistance from traditional financial institutions, fintechs are poised for long-term growth as they disrupt legacy systems by expanding financial services to underserved population segments.

The 4 financial technology stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 20% since the latest earnings results.

Robinhood (NASDAQ:HOOD)

With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Robinhood reported revenues of $1.27 billion, up 100% year on year. This print exceeded analysts’ expectations by 6%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ revenue estimates but number of funded customers in line with analysts’ estimates.

"Our team’s relentless product velocity drove record business results in Q3 and we’re not slowing down— Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming,” said Vlad Tenev, Chairman and CEO of Robinhood.

Robinhood scored the fastest revenue growth of the whole group. The company reported 26.8 million users, up 10.3% year on year. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 2.5% since reporting and currently trades at $105.43.

Is now the time to buy Robinhood? Access our full analysis of the earnings results here, it’s free.

Best Q3: LendingTree (NASDAQ:TREE)

Using the same comparison model that revolutionized travel booking, LendingTree (NASDAQ:TREE) operates an online platform that connects consumers with financial service providers across mortgages, personal loans, credit cards, insurance, and other financial products.

LendingTree reported revenues of $307.8 million, up 18% year on year, outperforming analysts’ expectations by 11%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

LendingTree pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.5% since reporting. It currently trades at $58.88.

Is now the time to buy LendingTree? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Remitly (NASDAQ:RELY)

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.

Remitly reported revenues of $419.5 million, up 24.7% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a mixed quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.

Remitly delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 8.86 million active customers, up 21.1% year on year. As expected, the stock is down 15.9% since the results and currently trades at $13.83.

Read our full analysis of Remitly’s results here.

Coinbase (NASDAQ:COIN)

Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.

Coinbase reported revenues of $1.87 billion, up 55.1% year on year. This number beat analysts’ expectations by 4.5%. It was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The company reported 9.3 million monthly active users, up 19.2% year on year. The stock is down 35.7% since reporting and currently trades at $211.37.

Read our full, actionable report on Coinbase here, it’s free.

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