Robinhood shares dipped by 8.77% on Tuesday as the multifaceted trading platform failed to meet its third-quarter revenue projection.
According to FactSet, an open data software firm, Robinhood’s revenue plunged by $72.1 million, dropping from $437.1 million in the second quarter to $365 million in the third quarter.
The company says dwindling crypto revenue is responsible for the overall revenue dip.
“Looking back at Q2, we saw a huge interest in crypto, especially doge, leading to large numbers of new customers joining the platform and record revenues,” Robinhood’s CEO Vlad Tenev told analysts.
Dogecoin contributed 60% of Robinhood’s revenue in the second quarter, and analysts expected the momentum to continue.
“In Q3, crypto activity came off record highs, leading to fewer new funded accounts and lower revenue,” Tenev added.
Robinhood realized $51 million from crypto trading in the third quarter; that’s a 78% plunge compared to the previous quarter. However, crypto revenue is up by 860% from a year earlier.
Equities trading nosedived by 27%, while total revenue surged by 35% within the same period. Citing IBES data.
Robinhood shares are currently trading at $35.49 as at press time.