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.
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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.
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