Dive Brief:

• Robinhood CFO Jason Warnick is stepping down after about seven years in the seat, transitioning in Q1 to the role of a strategic adviser to the company through Sept. 1 of next year, the company announced as part of its earnings release Wednesday. 
• The online brokerage, noting Warnick shared his plans Oct. 30, also named Shiv Verma, the company’s treasurer and senior vice president of finance and strategy, to take over as CFO when Warnick switches to his advisory role, according to a securities filing.   
• Robinhood’s shares fell about 10.8% Thursday, to close at $127.08, even though the company reported Q3 earnings that included a 100% revenue increase, year over year, for the period, to $1.27 billion. The company’s net income rose 271% YoY to $556 million. 

Dive Insight:

While Robinhood reported strong growth in the latest quarter, its stock slipped amid a down day for the markets. It was not clear whether the slide was related to the CFO’s departure announcement. 

Revenue from Robinhood’s cryptocurrency-trading business missed analysts’ estimates despite rising 300% to $268 million in the quarter, Bloomberg reported Wednesday. JPMorgan analysts wrote Thursday that the crypto revenue miss weighed on the stock. 

“It was a solid print, but the earnings beat was driven by tax, and the top line was weaker versus expectations in the highly scrutinized crypto revenue line,” analysts led by Kenneth Worthington wrote in a note to clients. 

Warnick, 53, joined Robinhood in 2018 from e-commerce giant Amazon, where he served as chief of staff to the CFO and held various responsibilities, according to Robindhood’s April proxy filing. Warnick’s compensation last year totaled $8.82 million, including $550,000 in salary and $6.7 million in stock awards. That was down from $10.2 million a year earlier. 

Shawn Cole, president and founding partner of the executive search firm Cowen Partners, said he wasn’t certain there was a connection between the stock slide and the CFO’s departure. 

“He’s had a good run, but I also doubt it’s retirement at his age,” Cole said. “It might just be time for some new blood.”

Verma also joined Robinhood in 2018. Prior to joining the firm, he held such roles as a baseball operations analyst for the Oakland A’s and later served as a vice president and portfolio manager at Pimco, and worked in capital markets and treasury at low-income lender Oportun, according to his LinkedIn profile.