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Robinhood Q2 Transaction Revenues Had A Silver Lining: Cryptocurrencies

Published 03/08/2022, 10:07
Updated 03/08/2022, 10:40
© Reuters.  Robinhood Q2 Transaction Revenues Had A Silver Lining: Cryptocurrencies

Robinhood (NASDAQ:HOOD) Markets, Inc (NASDAQ: HOOD) saw its second-quarter revenue fall 44% on a year-over-year basis but transaction-based cryptocurrency revenue saw a growth.

What Happened: Robinhood, a trading platform popular with retail investors, said in its Q2 earnings release that its transaction-based revenue for cryptocurrencies rose 7% sequentially to $58 million.

In the first quarter, the company had seen cryptocurrency revenue decline 39% to $54 million.

Cryptocurrencies were a bright spot for Robinhood as options transaction-based revenue fell 11% sequentially to $113 million and equities revenue dropped 19% to $29 million.

See Also: How To Buy Robinhood (HOOD) Shares

Why It Matters: Robinhood allows users to trade Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and a number of other cryptocurrencies.

The trading platform said despite the “challenging environment” faced by the entire cryptocurrency ecosystem it has “continued to build in this space.”

The Vlad Tenev-led company touched on its plans to introduce a non-custodial wallet later in 2022.

“The standalone app will allow customers to trade and swap crypto with no network fees and maintain full custody of their crypto throughout,” said Robinhood in its earnings release.

Robinhood's earnings per share came in at negative $0.34 beating the consensus of negative $0.37.

Price Action: Robinhood shares rose 2.1% higher to $9.23 in the after-hours trading after closing 0.65% lower at $9.17 in the regular session, according to data from Benzinga Pro.

Read Next: Robinhood To Cut 23% Of Staff In Second Round Of Layoffs This Year

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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