News

Robinhood’s Q3 Report: Cryptocurrency Revenue Dips 55% to $23 Million!

Key Points:

  • Robinhood’s revenue missed estimates, dropped by 11% due to lower crypto volumes.
  • The company plans to expand globally, launching EU crypto trading and UK brokerage.
Robinhood Markets Inc. faced a late-trading setback as its shares tumbled following the release of financial results that fell short of estimates.

The online brokerage’s revenue took a hit due to decreased cryptocurrency trading activity, resulting in a drop in transaction-based revenue.

The company disclosed a net revenue of $467 million, missing the average analyst prediction of $478.9 million. Nevertheless, this figure marked a 29% increase compared to the same period in the previous year. Transaction-based revenues experienced an 11% decline from the previous year, settling at $185 million. This decrease was primarily attributed to lower cryptocurrency trading volumes, which plummeted by 55% over the year, as reported by Robinhood in a statement on Tuesday.

The news of the financial results led to a 7% drop in Robinhood’s share price during late trading in New York. Despite this setback, the company’s shares have seen a significant overall increase of nearly 20% throughout the year.

Global Expansion and Regulatory Challenges

In a bid to continue its global expansion, Robinhood also revealed its plans to introduce European cryptocurrency trading and initiate its brokerage operations in the UK in the coming weeks.

Robinhood is well-known for offering commission-free trading services, enabling users to trade various cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and Shiba Inu tokens. The platform thrived during the peak of cryptocurrency investment during the pandemic, benefiting small-scale traders. However, the excitement surrounding cryptocurrencies has diminished due to a series of high-profile incidents.

In June, Robinhood announced the removal of three tokens, Solana, Cardano, and Polygon, from its crypto trading platform. This decision came in response to heightened regulatory scrutiny and crackdowns on some of the industry’s leading exchanges, reflecting the changing landscape of the cryptocurrency market.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

2 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

5 hours ago

Step into BlockDAG’s Presale Frenzy This November: Secure a Massive 100% Bonus with BDAG100!

November is the perfect time for BlockDAG's huge presale. Use BDAG100 to double your purchase.…

7 hours ago

OpenSea New Version Will Be Launched In December

OpenSea new version is scheduled to launch in December, with an improved user experience, improved…

7 hours ago

This website uses cookies.