Robinhood (HOOD) earnings: Crypto revenue slumps, but tops diminished forecasts - CoinDesk
Robinhood's cryptocurrency revenue fell 55% year-over-year to $120 million in the third quarter, but the figure still topped Wall Street's forecasts.
Crypto transaction revenue dropped to $120 million in the third quarter, down from about $267 million in the same period last year.
That figure, however, was ahead of Wall Street analysts’ expectations of $114.1 million.
The decline came as customers traded less crypto across Robinhood's platforms, with total crypto trading volume falling 38% to $50 billion.
Trading through the Robinhood app fell 48% to $21 billion, while volume on the crypto exchange Bitstamp dropped 28% to $29 billion.
Mixed results for the broader business
The slump in crypto trading revenue stood in contrast to Robinhood's broader business, which saw total revenue rise 12% year-over-year to $1.424 billion.
Options trading generated $399 million in revenue, up 31%, while equities revenue climbed 41% to $121 million.
Prediction markets brought in $173 million, more than six times the year-earlier figure.
Third-quarter EPS of $0.51 was less than consensus forecasts for $0.55.
Building out digital assets
Despite weaker crypto trading, Robinhood continued to build out its digital asset business.
The company said Robinhood Chain, its blockchain network, processed more than $80 billion in decentralized exchange trading volume and generated over $50 million in chain fees during its first quarter operating on mainnet.
Those fees reflect activity on the blockchain and should not be confused with Robinhood's reported crypto transaction revenue.
The company did not disclose how much of the chain fees it recognized as revenue.
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