Robinhood reveals

Robinhood Net Revenue Slided 43% With Crypto Trading Down 39%

Robinhood fell out of favor with retail investors as first-quarter revenue fell, down 43% from last year.

  • With growth stocks and cryptocurrencies under pressure, Robinhood is down sharply with trading activity. The main reasons are that the crypto market and global share sales are on the decline. The first quarter report indicated that the company’s total net income fell 43% to $299 million from $522 million in the first quarter of 2021. Revenue from cryptocurrency trading fell 39% to $54 million.
  • Robinhood is pretty stable. It has significantly reduced its loss throughout the year. It reported a net loss of $392 million and $0.45 per share, compared to $1.4 billion and $6.26 per share a year ago. However, the company’s loss expectation was $0.36 per share.
  • The company’s Adjusted EBITDA (non-GAAP) was minus $143 million. Last year’s value was $115 million and the drop is pretty dire. In addition, the number of monthly active users decreased by 10% from 17.7 to 15.9 compared to the previous year.
  • The results reflect macroeconomic change, the company said, as CEO Vlad Tenev says its customers are perhaps the first to experience the opposite of “low interest rates, low inflation and emerging markets.”
  • Crazy trading activity from stocks, including GameStop and AMC Entertainment, and Dogecoin were a significant part of the company’s revenue last year.
  • With growth stocks and cryptocurrencies under pressure, Robinhood is losing investor confidence.
  • Despite promising to focus on “long-term growth” as stated in the report, the company announced days ago that it will cut 9% of its full-time employees.
  • At the time of writing, the company’s HOOD stock is trading just over $10.00, recovering from the dire drop in the premarket hours.

RELATED : U.S Congress Members Holding $1.8 Million Worth of Crypto Assets Causes  Concern

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

Check Also


EU MPs Attack Amazon’s Participation in Digital Euro Project

A cross-party coalition of members of the European Parliament on Tuesday came under fire at …

Leave a Reply

Your email address will not be published.