TradeStation Ends Q4 FY22 with a 19% Revenue Decline

Wednesday, 27/04/2022 | 07:39 GMT by Arnab Shome
  • The broker cited a decrease in trading-related revenue as the reason for the decline.
  • However, client onboarding remained strong.
Trade station futures

An American online broker, TradeStation, which is a fully-owned subsidiary of Monex Group, released its financials for the first three months of 2022. It reported total net revenue of $52.6 million for the period, which is a 19.1 percent decline year-over-year.

In addition, it closed the fiscal year 2022, which ended on March 31, with total revenue of $209.6 million, which is a decline of 4.1 percent. The broker cited decreases in trading-related revenue, net interest income, and subscription and other revenue streams as the primary reason for the revenue drop.

TradeStation generated $44.1 million between January and March only from trading-related activities, which was a decline of 14.8 percent, mostly due to lower equities and cryptocurrency trading volume. Moreover, net interest income in the period declined 7.9 percent to $10.1 million.

Additionally, the total quarterly expense of the broker soared by 78.1 percent to $68.7 million. This resulted in a net loss of $14.8 million for the three months, while this figure stood at $31.7 million for the fiscal year.

Strong Client Metrics

Meanwhile, the broker’s customer metrics remained strong. It ended March with 226,506 total customer accounts, which is a yearly jump of 55.3 percent. The platform added 62,787 gross new accounts in the last three months of fiscal 2022. Furthermore, the total customer assets on the trading platform jumped by 16.4 percent to $12 billion.

In contrast, the daily average revenue trades (DARTs) witnessed a 14.2 percent decline to 237,694.

“While our total customer accounts grew year over year, we believe the overall decrease in retail trading volume in the March 2022 fiscal quarter as compared to the very high volume we saw a year ago during the first year of the COVID-19 pandemic was the primary reason that our trading-related revenue decreased, although we did see year-over-year increases in our customers’ futures and options trading volume,” said TradeStation’s CEO, John Bartleman.

An American online broker, TradeStation, which is a fully-owned subsidiary of Monex Group, released its financials for the first three months of 2022. It reported total net revenue of $52.6 million for the period, which is a 19.1 percent decline year-over-year.

In addition, it closed the fiscal year 2022, which ended on March 31, with total revenue of $209.6 million, which is a decline of 4.1 percent. The broker cited decreases in trading-related revenue, net interest income, and subscription and other revenue streams as the primary reason for the revenue drop.

TradeStation generated $44.1 million between January and March only from trading-related activities, which was a decline of 14.8 percent, mostly due to lower equities and cryptocurrency trading volume. Moreover, net interest income in the period declined 7.9 percent to $10.1 million.

Additionally, the total quarterly expense of the broker soared by 78.1 percent to $68.7 million. This resulted in a net loss of $14.8 million for the three months, while this figure stood at $31.7 million for the fiscal year.

Strong Client Metrics

Meanwhile, the broker’s customer metrics remained strong. It ended March with 226,506 total customer accounts, which is a yearly jump of 55.3 percent. The platform added 62,787 gross new accounts in the last three months of fiscal 2022. Furthermore, the total customer assets on the trading platform jumped by 16.4 percent to $12 billion.

In contrast, the daily average revenue trades (DARTs) witnessed a 14.2 percent decline to 237,694.

“While our total customer accounts grew year over year, we believe the overall decrease in retail trading volume in the March 2022 fiscal quarter as compared to the very high volume we saw a year ago during the first year of the COVID-19 pandemic was the primary reason that our trading-related revenue decreased, although we did see year-over-year increases in our customers’ futures and options trading volume,” said TradeStation’s CEO, John Bartleman.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6344 Articles
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