Robinhood, a cryptocurrency and stock trading application, has recorded a 30% year-on-year revenue fall for its crypto trading operations of Q1, 2023, as stated by Cointelegraph.
According to Cointelegraph, on May 10, 2023, it’s found that Robinhood’s Q1, 2023, revenue generation went from $54 million in Q1, 2022, to $38 million. Reportedly, Robinhood witnessed $441 million worth of total revenue year-on-year for Q1, 2023, in comparison to $299 million for Q1, 2022.
Based on Cointelegraph’s information, Robinhood also witnessed a 16% increase in revenue in Q1, 2023, with regard to last quarter. It’s believed that United States Federal Reserve’s rate hikes played a part in the company’s earnings. Sources suggest that Robinhood currently holds $12 billion worth of crypto, which represented a 50% rise over the quarter. Robinhood’s monthly active users also sustained a year-on-year fall, falling from around 16 million in Q1, 2022, to nearly 12 million in Q1, 2023.
Moreover, Cointelegraph noted that Robinhood clocked a net loss worth $511 million, affected by “a one-time $485 million share-based compensation expense” on account of its co-founders “canceling their 2021 market-based restricted stock unit awards in February 2023.” From what it’s understood, the loss was Robinhood’s highest since Q3, 2021, and a 30% rise in losses year-on-year.
(With insights from Cointelegraph)