Robinhood Markets (HOOD) reported $54 million in crypto revenue during the first quarter, versus $48 million in the fourth quarter. The company reported $51 million in crypto revenue in last year’s third quarter, which was down from a record $233 million in the previous quarter.
The popular no-fee trading app posted overall Q1 revenue of $299 million versus the analyst consensus estimate compiled by FactSet of $355 million. The company also reported an adjusted earnings loss of 45 cents per share versus the consensus analyst estimate loss of 38 cents per share.
The company said in a statement Thursday that net cumulative funded accounts increased to 22.8 million as of March 31 from 18.0 million in the year-ago quarter. Robinhood said the increase was “primarily driven by large customer interest in cryptocurrencies during the second quarter of 2021.”
On its earnings conference call Thursday, Robinhood said it has been refining core crypto infrastructure to “effortlessly” custody and support new coins, tokens and chains. CEO Vlad Tenev said this initiative is part of a process that began last year and Robinhood will soon be able to add new coins with “relatively minimal effort.”
In its recent crypto moves, Robinhood agreed to buy London-based crypto platform Ziglu, which is approved to offer crypto services in the U.K. The company also added tokens SHIB, SOL, Polygon’s MATIC and Compound’s COMP to its platform for users after activating its crypto wallet for two million “eligible” customers, making digital asset transfers broadly possible in the long-firewalled investments app.
Shares of Robinhood fell about 12% in after-hours trading on Thursday.
UPDATE (April 28, 2022, 21:40 UTC): Adds conference call commentary and updated stock price.
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