Robinhood Q3 earnings: Crypto income declines amid general 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 delicate in crypto right here,” including that within the final week, the platform noticed an uptick in crypto buying and selling. That would have one thing to do with Elon Musk’s Twitter takeover and one other Doge-related tweet from the billionaire.

Nonetheless, Robinhood will proceed to “spend money on the area and ensure 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 complete internet income. Month-to-month lively 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 function requests for purchasers, together with superior charts, choices in money accounts, immediate withdrawals and our self-custody, Web3 pockets,” CEO Vlad Tenev famous in a press release accompanying the earnings report.

Because the 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 lively customers in its second quarter earnings, and introduced it was reducing 23% of its employees.