Robinhood Doubles Its Second-Quarter Revenue On Crypto Trading Boom
Robinhood’s revenue has increased by more than double in the second quarter, reaching $565 million. The trading platform said the increase was bolstered by a huge surge in crypto trading.
However, Robinhood shares dropped by more than 8% in after-hours trading as the company warned that a slowdown in trading activity would impact revenues in the current quarter. It is also possible that the platform’s investors are apprehensive about whether crypto, renowned for its volatility, can continue to provide financial success for the company.
Robinhood’s revenue surged by over 131% in the period from $244 million a year ago, nearing the high range of the trading platform’s prediction of $546 million to $574 million. The company saw revenue from crypto trading reach $233 million, over half of all the transaction-based revenue of $451 million for the second quarter. In the first quarter, crypto’s share of revenue rose to over 51% from 17%. By contrast, the company’s crypto-based revenue sat at just $5 million In the second quarter of 2020.