Robinhood missed its first-quarter earnings and revenue estimates after reporting a sharp decline in crypto trading revenue, even as growth in other parts of its business pushed overall revenue higher.
The popular trading platform reported first-quarter adjusted earnings per share of $0.38, missing Wall Street’s $0.39 estimate, according to FactSet data.
While the company posted a 15% year-over-year increase in total revenue to $1.07 billion, it fell short of analysts’ expectations of $1.14 billion.
Shares fell about 8% in post-market trading following the report.
Crypto-related revenue, one of Robinhood’s largest transaction drivers, dropped 47% to $134 million from $252 million a year earlier. The decline comes as the company tries to shift the narrative away from crypto price cycles.
The drop in crypto trading revenue coincided with stronger activity in other areas. Transaction-based revenue rose to $623 million from $583 million a year earlier, helped by growth in newer areas like prediction markets, derivatives and advisory tools.
Source: X.com
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