Dive Brief:

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

Dive Insight:

While the company 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 at all related to the CFO’s departure. 

Bloomberg reported Wednesday that revenue from Robinhood’s cryptocurrency-trading business missed analysts’ estimates despite rising 300% to $268 million in the quarter. JPMorgan analysts writing Thursday said 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 ecommerce giant Amazon, where he served as chief of staff to the CFO and held various responsibilities, according to Robindhood’s April proxy filing. Last year Warnick’s compensation totaled $8.82 million, including $550,000 in salary and $6.7 million in stock awards, down from total compensation a year earlier of $10.2 million. 

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, it might just be time for some new blood,” Cole said.

Warnick’s successor also joined Robinhood in 2018. Prior to joining the firm, he held such roles as a baseball operations analyst at Oakland Athletics early in his career and later went on to serve as a VP and portfolio manager at PIMCO, according to his LinkedIn account. He holds a bachelor’s in economics from Stanford University and an MBA from UCLA Anderson School of Management.