Business & Economy

Robinhood Shares Fall As Crypto Trading Revenue Declines Drastically

The popular trading platform, Robinhood has disclosed that the reduced crypto trading activity on the platform led to its significant fewer new funded accounts and lower revenue in the third quarter.

Robinhood (NASDAQ: HOOD) shares fell about 8% in after-hours trading Tuesday after the zero-commission trading platform missed badly on revenue expectations as its cryptocurrency revenue fell sharply from the second quarter’s record high.

Robinhood said its crypto revenues fell to just $51 million in the third quarter, down from a record $233 million in the second quarter. The company said the reduced crypto trading activity led to significantly fewer new funded accounts and lower revenue in the quarter as compared to the second quarter.

Robinhood Shares Fall As Crypto Trading Revenue Declines Drastically

Total revenue for the quarter was $365 million, short of analyst estimates of $437.1 million, according to FactSet. The company reported an adjusted net loss of $2.06 per share, versus analyst expectations of a loss of $0.67.
Robinhood said that over one million customers have signed up on the waiting list for its crypto wallet, which is one of its “most heavily requested products.”
The company also launched recurring crypto investments, allowing customers to automatically buy crypto, without paying commissions and on their own schedule.
On the company’s earnings call on Tuesday, CEO Vlad Tenev said the company was awaiting regulatory clarity before adding more cryptocurrencies to the seven that customers can currently trade – bitcoin, bitcoin cash, bitcoin SV, dogecoin, Ethereum, Ethereum Classic and Litecoin. “We’re going to be very careful,” Tenev said.
The previous speculation existed around Shiba Inu being added to Robinhood’s crypto offerings, though Tenev made no mention of this on the call.
The company also noted that the popularity of dogecoin contributed to millions of new accounts being added in the second quarter.
Robinhood went public on July 28 at an IPO price of $38 per share and closed down 8% on its first day of trading.
Facebook Comments
Brand News Day

Recent Posts

Apple Unveils iPhone 17 Air, Slick, Slimmer Than Previous Models (PHOTOS)

Apple Inc is set to present a slimmer iPhone 17 Air model, marking a potential…

2 weeks ago

Six-Year-Old Ella Shoots, Kills American Police Officer In Mother’s Defense

A six-year-old girl, Ella, fatally shot a 28-year-old American police officer last month after witnessing…

2 weeks ago

LIRS Urges Taxpayers To Meet March 31 Deadline For Annual Tax Return Submission

The Lagos State Internal Revenue Service (LIRS) reminds all individual taxpayers, including self-employed individuals, those…

2 weeks ago

Stanbic IBTC Bank Partners Autochek To Boosts Car Ownership, Disburses N4Bn

Stanbic IBTC Bank, a prominent financial institution in Nigeria, has partnered with Autochek, an innovative…

3 weeks ago

Stanbic IBTC PMI®: Output Growth Accelerates To Fastest In Just Over One Year

The headline figure derived from the survey is the Stanbic IBTC PMI® - Purchasing Managers’…

3 weeks ago

Stanbic IBTC Bank Reintroduces Its Private Banking Offerings To Empower Nigerians Build Lasting Wealth

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings and a leading financial service solutions…

3 weeks ago

This website uses cookies.