Robinhood's (NASDAQ:HOOD) May results "came in better than expected," Goldman Sachs analysts told investors in a note Monday.
Equity notional trading volumes for Robinhood in May were $49.4 billion, up 27% year-on-year. Meanwhile, net cumulative funded accounts at the end of May were 23.1 million, up approximately 20,000 from April 2023, while Monthly Active Users (MAU) declined to 10.6M in May, down approximately 900,000 from April 2023.
Nance said the US brokerage's trading results rebounded off a soft April, with margin balances remaining flat and Monthly Active Users continuing to soften.
"Despite the weakness in active users and transaction revenues likely tracking below street estimates, we believe today's results likely come in modestly ahead of buyside expectations given mgmt's commentary around the time of earnings, which pointed to continued softening of retail engagement," the analysts wrote.
"Putting it all together, despite revenues tracking below street expectations, we believe results came in in-line to modestly ahead of buyside expectations, given trading results at peers," they concluded.