Investing app Robinhood continues to really feel the nippiness of Crypto Winter. The corporate reported on Wednesday that its cryptocurrency transaction-based income fell 12%, to $51 million, from the second quarter to the third.
“We’re definitely a participant within the broader crypto market, and when total buying and selling volumes in crypto are down, we see that mirrored within the exercise on Robinhood as properly,” CFO Jason Warnick mentioned 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 another Doge-related tweet from the billionaire.
Nonetheless, Robinhood will proceed to “put money into the area and be sure that we’re properly positioned for when this turns round,” Warnick added, mentioning the corporate’s self-custody “Web3 pockets,” which permits clients to commerce and swap cryptocurrency with no community charges.
General, Robinhood reported a complete lack of $175 million within the third quarter, with $361 million in complete web 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 high characteristic requests for patrons, 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.
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 lively customers in its second quarter earnings, and introduced it was cutting 23% of its staff.
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