Robinhood announce $51 million value of transaction-based revenue from crypto in Q3, marking a 78% decrease compared to the previous quarter.
Robinhood shares (HOOD) have fallen sharply on the rear of the firm’s Q3 results that announce under expected crypto trading revenue.
The popular retail trading firm revealed its Q3 report on Oct. 26, with crypto accounting for $51 million (19%) of the full $267 million price of transaction-based revenue within the quarter.
The release of the report on Tuesday coincided with HOOD dropping around 10% to $35.70, but the worth has since gained 1.9% to sit down at $36.40 at the time of this writing.
The $51 million generated from crypto transactions in Q3 marked a 78% decrease compared to the firm’s record $233 million from Q2. Robinhood’s crypto revenue half-moon was bolstered by the Dogecoin (DOGE) community, with the memecoin representing a banging 62% of crypto revenue.
The firm announce total internet revenues of $365 million for the quarter, that fell well below Wall Street analysts predictions of $437.1 million in line with FactSet.
Robinhood expressed in its Q3 report that its business had been wedged by many factors as well as seasonality, market volatility, retail trading behavior and unexpected market events. The firm said that constant problems might act in Q4.
“In the absence of any changes to the market surroundings or exogenous events, we have a tendency to believe this might lead to quarterly revenues no bigger than $325 million and full-year revenue of but $1.8 billion,” the report scan.
While crypto activity declined, Vlad Tenev, the CEO of Robinhood printed his optimism for the firm’s future prospects in digital assets, as he emphasised the new products and services built for retail traders in Q3, like a digital case that may finally modify users to withdraw and deposit crypto to and from the platform:
"More than one million people have joined our crypto wallets waitlist to date. With 24/7 live phone support, we believe that Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors.”
“And looking ahead, we're committed to delivering tax-advantaged retirement accounts to help everyone invest for the long run,” he added.
(Brian Quarmby, Cointelegraph, 2021)