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Robinhood’s Q1 crypto revenue drops 30% from the previous year

May 10, 2023 Coin Telegraph

The money coming in for the trading app's crypto business reached $38 million over the first quarter of 2023, down from $54 million in Q1 2022.

First quarter results are in for cryptocurrency and stock trading app Robinhood, with the company reporting a 30% year-on-year revenue drop for its crypto trading business.

Released May 10, Robinhood's Q1 2023 earnings revealed $38 million in crypto trading revenues over the period, dropping from $54 million in Q1 2022.

Robinhood's total net revenues, however, increased year-on-year with Q1 2023 bringing in $441 million compared to 2022's first quarter net revenues of $299 million — an increase of around 47.5%.

*Crypto transaction revenues (dark green) for Robinhood Source: Robinhood*

Its Q1 2023 revenues were also a 16% gain since last quarter.

Around $12 billion worth of crypto is currently under the custody of the trading app, a 50% increase over the quarter, though it is down 40% compared to the same time last year.

*Robinhood's crypto under custody (light green) saw a quarterly gain and sits at $12 billion, the same figure from two years ago. Source: Robinhood*

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This is a developing story, and further information will be added as it becomes available.

Robinhood axes almost 1 in 10 staff members as stock hits all-time low

April 27, 2022 Coin Telegraph

Coin Telegraph

“We determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency,” noted Robinhood CEO and co-founder Vlad Tenev.

Popular retail trading platform Robinhood has fired 9% of its workforce amid a firesale of its stock that has seen HOOD plunge to all-time lows.

In the past 30 days alone, HOOD has tanked roughly 38% to sit at $9.99 at the time of writing, marking the lowest price since the initial public offering (IPO) launch in mid-2021.

The decline is part of a longer-term bearish trend that has seen the price of HOOD continually decrease since its all-time high of roughly $70.39 on Aug. 4 2021 according to TradingView.

Robinhood publicly announced its staff readjustment via an April 26 blog post by CEO and co-founder Vlad Tenev. He noted that after going through a “period of hyper-growth” between 2020 and H1 2021, the firm’s headcount had increased nearly six times, from 700 to nearly 3800 employees.

However, Tenev suggested that too many job roles at the company have since become unnecessary, stating that:

“This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal. After carefully considering all these factors, we determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency.”

“We will retain and continue to hire exceptional talent in key roles and provide additional learning and career growth opportunities for our employees,” he added.

Crypto to help drive the recovery?

Moving forward, Robinhood stated in the announcement that it is positioned well for the future with more than $6 billion worth of cash on its balance sheet, while also noting that it will continue to introduce “key new products across Brokerage, Crypto, and Spending/Saving” in 2022.

The firm’s total revenue last year totaled $1.82 billion, up 89% compared to 2020, and a significant part of Robinhood’s performance was due to revenue generated from crypto services.

Crypto transaction revenue totalled $419 million in 2021 marking a whopping 1451% increase compared to the year prior. In Q2 2021 in particular, crypto accounted for 41% of Robinhood’s total revenue, however it's worth noting that the figure dropped down to around 13% by Q4.

Robinhood doesn’t appear to be losing interest in the sector this year however, and has made many moves geared towards expanding its crypto offerings of late.

On April 19, Cointelegraph reported that Robinhood acquired British crypto-asset firm Ziglu to help its expansion plans into U.K. and European markets, something which Tenev highlighted will “continue to accelerate” this year.

Earlier this month, Robinhood also rolled out its highly anticipated crypto wallet to 2 million waitlisted users, outlined plans to integrate the Lighting Network, and it listed Shiba Inu (SHIB) after months of campaigning from its supporters.

Robinhood shares tank 10% after crypto revenue falls by three quarters

October 27, 2021 Coin Telegraph

Coin Telegraph

Robinhood posted $51 million worth of transaction-based revenue from crypto in Q3, marking a 78% decrease compared to the previous quarter.

Robinhood shares (HOOD) have fallen sharply on the back of the firm’s Q3 results which posted lower than expected crypto trading revenue.

The popular retail trading firm published its Q3 report on Oct. 26, with crypto accounting for $51 million (19%) of the total $267 million worth of transaction-based revenue in the quarter.

The release of the report on Tuesday coincided with HOOD dropping around 10% to $35.70, however the price has since gained 1.9% to sit at $36.40 at the time of this writing.

The $51 million generated from crypto transactions in Q3 marked a 78% decrease compared to the firm’s record $233 million from Q2. Robinhood’s crypto revenue last quarter was bolstered by the Dogecoin (DOGE) community, with the memecoin representing a whopping 62% of crypto revenue.

The firm posted total net revenues of $365 million for the quarter, which fell well below Wall Street analysts predictions of $437.1 million according to FactSet.

BREAKING: #Robinhood shares plunge over 8% in aftermarket trading as Q4 revenue came in at $365 million, missing estimates of $431.5 million. $HOOD pic.twitter.com/Krl5TaOiuM
— Mr. Whale (@CryptoWhale) October 26, 2021

Robinhood stated in its Q3 report that its business had been impacted by several factors including seasonality, market volatility, retail trading behavior and unanticipated market events. The firm said that the same issues may persist in Q4.

“In the absence of any changes to the market environment or exogenous events, we believe this may result in quarterly revenues no greater than $325 million and full-year revenue of less than $1.8 billion,” the report read.

While crypto activity declined, Vlad Tenev, the CEO of Robinhood outlined his optimism for the firm’s long term prospects in digital assets, as he emphasized the new products and services built for retail traders in Q3, such as a digital wallet that will finally enable users to withdraw and deposit crypto to and from the platform:

"More than one million people have joined our crypto wallets waitlist to date. With 24/7 live phone support, we believe that Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors.”

“And looking ahead, we're committed to delivering tax-advantaged retirement accounts to help everyone invest for the long term,” he added.

In broader terms than crypto in Robinhood’s Q3 report, the firm's total net revenues of $365 million marked a 35% decrease from the previous quarter. While the firm posted a net loss of $1.32 billion, or $2.06 per diluted share compared to a $502 million loss, or $2.16 per share, in Q2.

Monthly active users also dropped from 21.3 million in Q2 to 18.9 million last quarter. However, Robinhood’s user base could be set to increase in Q4, with speculation swirling around the Shiba Inu (SHIB) community that the dog themed token may be listed on the platform soon.

There is no evidence confirming this however. Robinhood did send out a survey on Oct. 23 to its customers regarding the crypto assets they purchased over the past three months, with SHIB making the list.

BREAKING NEWS: Robinhood is emailing this survey to select users of their platform.

They are including #SHIB as one of the answers to select!

Clearly doing market research on what their consumers want. pic.twitter.com/ovBNV2p0Wl
— Shiba Inu News (@ShibalnuNews) October 22, 2021

According to data from CoinGecko, the price of SHIB has gained around 69% over the past seven days to sit at $0.00004759 at the time of writing, while the asset is up a mammoth 568% over the last 30 days.

Crypto revenue