Robinhood's crypto revenue fell 55% from last year, but topped Street forecasts

Robinhood's HOOD$94.61·Market Closed third-quarter cryptocurrency trading concern was down 55% from past twelvemonth but inactive topped Street forecasts.

Crypto transaction gross dropped to $120 cardinal successful the 3rd quarter, according to the company's earnings report released Tuesday. That was down from astir $267 cardinal successful the aforesaid play past year, but up of Wall Street analysts’ expectations of $114.1 million.

That near crypto accounting for conscionable 8.4% of Robinhood's $1.42 cardinal successful full quarterly revenue, compared with astir 21% a twelvemonth earlier.

The diminution came arsenic customers traded little crypto crossed Robinhood's platforms. Total crypto trading measurement fell 38% to $50 billion, including $21 cardinal done the Robinhood app, down 48%, and $29 cardinal done crypto speech Bitstamp, down 28%.

The slump successful crypto trading gross stood successful opposition to Robinhood's broader business. Total gross roseate 12% year-over-year to $1.424 billion, helped by maturation successful options, equities and prediction markets. Street estimates had been for $1.43 billion.

Options trading generated $399 cardinal successful revenue, up 31%, portion equities gross climbed 41% to $121 million. Prediction markets brought successful $173 million, much than six times the year-earlier figure.

Third-quarter EPS of $0.51 was little than statement forecasts for $0.55.

Despite weaker crypto trading, Robinhood continued to physique retired its integer plus business.

The institution said Robinhood Chain, its blockchain network, processed much than $80 cardinal successful decentralized speech trading measurement and generated implicit $50 cardinal successful concatenation fees during its archetypal 4th operating connected mainnet.

Those fees bespeak enactment connected the blockchain and should not beryllium confused with Robinhood's reported crypto transaction revenue. The institution did not disclose however overmuch of the concatenation fees it recognized arsenic revenue.

Shares of the institution were down astir 5% successful post-market trading.