Robinhood Q3 earnings: Crypto revenue declines amid overall market downturn

“We’re definitely a participant within the broader crypto market, and when general buying and selling volumes in crypto are down, we see that mirrored within the exercise on Robinhood as properly,” CFO Jason Warnick stated throughout a press name. “In Q3, buying and selling was a bit smooth in crypto right here,” including that within the final week, the platform noticed an uptick in crypto buying and selling. That might have one thing to do with Elon Musk’s Twitter takeover and another Doge-related tweet from the billionaire.

Nonetheless, Robinhood will proceed to “spend money on the area and guarantee that we’re properly positioned for when this turns round,” Warnick added, mentioning the corporate’s self-custody “Web3 pockets,” which permits prospects to commerce and swap cryptocurrency with no community charges.

Total, Robinhood reported a complete lack of $175 million within the third quarter, with $361 million in whole internet income. Month-to-month energetic customers additionally declined 1.8 million to 12.2 million in September. In after-hours buying and selling, shares rose greater than 4% to almost $12.

“We delivered on prime characteristic requests for purchasers, together with superior charts, choices in money accounts, prompt withdrawals and our self-custody, Web3 pockets,” CEO Vlad Tenev famous in an announcement accompanying the earnings report.

For the reason that harsh plunge that adopted the speculative crypto and meme-stock hype cycle final 12 months, Robinhood has struggled. In August, the corporate reported lower-than-expected income and month-to-month energetic customers in its second quarter earnings, and introduced it was cutting 23% of its staff.