finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Robinhood Shares Tank As Revenue Falls Significantly Short Of Expectations On Lighter Crypto Trading

On Tuesday, stock trading platform Robinhood reported a third quarter revenue which significantly missed Wall Street analyst expectations as cryptocurrency trading dropped off.

Posted: 27th October 2021 by
Finance Monthly
Share this article

Robinhood’s third quarter revenue jumped 35% to $364.9 million compared with $270 million in the third quarter of 2020. However, the trading platform still missed Wall Street estimates of $423.9 million. 

Average Revenues Per User (ARPU) was down 36% to $65, compared with $102 in the third quarter of 2020. Robinhood’s annual revenue forecast of almost $1.8 billion missed Wall Street estimates of $2.03 billion. Following the results, Robinhood shares sank by around 8%. 

The company says crypto activity "declined from record highs in the prior quarter, leading to considerably fewer new funded accounts, a slight decline in Net Cumulative Funded Accounts, and lower revenue in the third quarter of 2021 compared with the second quarter of 2021."

Robinhood had been previously warned of “season headwinds” as the industry moved into the second half of the year, which could lead to lower revenues and significantly fewer new funded accounts.

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram