+8 C°
Traffic jam:   0

Robinhood's earnings from cryptocurrency trading plummeted

27 October 2021
2 min.
Robinhood's earnings from cryptocurrency trading plummeted

Revenues plummeted

Shares of Robinhood (HOOD) fell after the online broker reported earnings below market analysts' forecasts as cryptocurrency trading volumes on the company's platform dropped sharply. Robinhood said this could happen again in Q4.

Shares of Robinhood (HOOD), up 13.6% in the 4 months since its IPO, plummeted 9.65% Tuesday after the close.

Robinhood's report

Robinhood reported a Q3 2021 loss per share (ended Sept. 30) of -$2.06, worse than the -$1.37 loss per share forecast by market analysts.

The total loss for the quarter was $1.32 billion.

Robinhood's total quarterly revenues were up 35% from last year to $365 million, but down sharply from $565 million in the second quarter. Wall Street analysts on average had forecast a figure of $431.5 million.

The company lost customers in Q3, posting 22.4 million accounts, down from 22.5 million in the second quarter. The number of monthly active users fell to 18.9 million, down from 21.3 million in the second quarter.

Average revenue per user dropped 36% to $65, down from $102 a year ago.

Reasons for the drop in revenue

Robinhood's revenue from options trading transactions on the platform was $164 million and $50 million from stock trading.

The main reason for the sharp drop in revenue was the decline in cryptocurrency transactions on the company's platform in the third quarter.

On August 31, the chairman of the Securities and Exchange Commission (SEC) Gary Gensler said that such practices could be prohibited, the final legislative decision has not yet been made.

In 2021, Robinhood was ranked among the top online stockbrokers by mobile trading platforms/apps.

Robinhood's revenue from cryptocurrency trading on the platform was $51 million, while in the previous quarter the figure was four times higher: $233 million, then the company noted interest in the new cryptocurrency dogecoin and mem shares.

Robinhood Forecast

The company said it expects fourth-quarter revenue of no more than $325 million.

However, the company continues to add new products, such as a crypto wallet, a service for storing and settling cryptocurrency.

"If this quarter is a hint at what Robinhood's results might be in a volatile market, I expect Wall Street analysts' sentiment and estimates about Robinhood stock to fall," Michael Bailey, an analyst at FBB Capital Partners, said in a note to clients.

Persons2 and Companies3 in the news

Analyst at FBB Capital Partners
1 place
Chairman of Unined States Securities and Exchange Commission
2 place
2 place


Rating companies
196 Mention
Dow Jones
139 Mention
77 Mention
66 Mention
66 Mention
59 Mention
45 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year