Last year was a roller coaster for fintechs, and the ups and downs were particularly dramatic for companies powered by memes and viral initiatives. Retail investment platform Robinhood is a particular standout: despite surging in monthly users to more than 11.4 million, shockwaves in the market have made it very difficult for the company to reach profitability in a landscape that still does not inspire confidence in investors.
As it turned out, Robinhood has been able to open 2023 on a higher note than expected. As of the company’s Q4 earnings call, Robinhood has been able to slash operating costs by more than $40 million and may be on track to reach profitability by the end of the year.
“You're going to see us launch products, you're going to see us iterate on those products and just keep driving for improvement,” said Jason Warnick, the company’s Chief Financial Officer, in the earnings call. “And I think when you add all that together, it leads to revenue growth over time.”