Robinhood sees a massive drop in crypto revenue in Q3.

Robinhood has published its financials for the third quarter of 2021, reporting a massive drop in crypto revenues.

Robinhood has published its financials for the third quarter of 2021, reporting a 35 percent yearly surge in its revenue. The company generated $365 million in revenue compared to last year’s $270 million. The figures came down significantly from the previous quarter against which the broker warned in its earnings report. In Q2, its revenue was at $565 million. The transactional-based revenue of the broker jumped by 32 percent year-over-year to $267 million.

 

Robinhood generated $51 million in crypto revenues.

Revenue from crypto trading came in at $51 million, compared to last year’s merely $5 million. That was a year-over-year jump of 860 percent. However, as anticipated by the broker, crypto trading declined drastically from Q2 when it brought in $233 million, more than half of the transaction-based revenue. The trading platform further revealed that the fading popularity of its crypto services resulted in ‘considerably fewer new funded accounts. Robinhood remains a loss-making company as it ended the quarter with a pre-tax loss of $1.37 billion. 

 

The net loss of the broker came down to $1.32 billion, or $2.06 per diluted share.

The monthly active users on Robinhood increased by 76 percent to 18.9 million, while the asset under custody soared by 115 percent to $95 billion. “This quarter was about developing more products and services for our customers, including crypto wallets,” said Robinhood CEO Vlad Tenev. Indeed, the upcoming crypto wallet already has 1 million users on the waitlist. For the ongoing last quarter of the fiscal year, the American brokerage is again expecting an impact on its numbers of seasonal headwinds and lower retail trading activity. Under the anticipated circumstances, it is expecting Q4 revenue to be no greater than $325 million and full-year revenue of less than $1.8 billion.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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