Stock and crypto investing app Robinhood reported $441 million in net revenue in Q1 2023, up 16% from the previous quarter.
Its increased numbers, however, did not come from its crypto business – which appears to be trending in the opposite direction.
Per the company’s first-quarter results report on Wednesday, Robinhood’s transaction-based revenues increased 11% quarter over quarter to $207 million.
This included a 7% increase in options revenue to $133 million, and a 29% increase in equities revenue to $27 million. On the other hand, crypto revenue declined by 1% to $38 million.
The crypto figure is also 30% down year over year from $54 million in Q1 2022, when the digital asset valuations were significantly higher. Robinhood’s net revenue over that time increased 47.5%, from $299 million a year prior.
The company’s biggest earner since last year was interest revenue. Which rose 25% to $208 million. Rate hikes from the Federal Reserve beginning last year can largely be thanked for this, which were simultaneously responsible for driving down both digital assets and tech stocks.
Robinhood also announced the launch of its 24-Hour Market, giving 24/5 trading access to popular ETFs and individual stocks such as TSLA, AMZN, and AAPL. Crypto can already be traded 24/7 on the platform.
“We grew revenues four quarters in a row while getting to a leaner operating model,” said Jason Warnick, Chief Financial Officer of Robinhood Markets. “At the same time, we delivered new products and features that led to outsized improvements in customer satisfaction.”
Robinhood enacted multiple significant layoffs last year after overhiring during red-hot growth in 2021, including a 9% headcount reduction in April, and a 23% layoff in August.
Though its crypto revenue took another hit this quarter, the pace of the decline was much smaller than in previous quarters, such as the 25% loss between Q3 and Q4 2022.
Robinhood is still continuing to develop crypto-related products. In April, the company announced new integrations with certain self-custodial wallet providers letting users purchase cryptocurrencies directly from their own wallet.
The post Robinhood Q1 Revenue Up 16%, But Not In Crypto appeared first on CryptoPotato.
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]