Robinhood (HOOD) shares had been falling greater than 8% in after-hours buying and selling Tuesday after the zero-commission buying and selling platform missed badly on income expectations as its cryptocurrency income fell sharply from the second quarter’s file excessive.
- Robinhood stated its crypto revenues fell to only $51 million within the third quarter, down from a file $233 million within the second quarter. The firm stated the diminished crypto buying and selling exercise led to considerably fewer new funded accounts and decrease income within the quarter as in comparison with the second quarter.
- Total income for the quarter was $365 million, wanting analyst estimates of $437.1 million, in response to FactSet. The firm reported an adjusted web lack of $2.06 per share, versus analyst expectations of a lack of $0.67.
- Robinhood stated that over a million clients have signed up on the ready listing for its crypto pockets, which is one among its “most heavily requested products.”
- The firm additionally launched recurring crypto investments, permitting clients to mechanically purchase crypto, with out paying commissions and on their very own schedule.
- Shares had been down 8.2% in after-hours buying and selling to $36.34 on Tuesday following the discharge of the report. The firm went public on July 28 at an IPO worth of $38 per share and closed down 8% on its first day of buying and selling.
UPDATE (Oct. 26, 20:57 UTC): Added share worth info in fifth bullet level.