Robinhood Reports 30% Decline In Revenue For Q1
Robinhood, a popular stock and cryptocurrency trading app, has reported its revenue for the first quarter of 2023. While the company’s overall revenue increased compared to the same quarter in the previous year, its cryptocurrency trading business saw a 30% decline in revenue, bringing in $38 million in Q1 2023, compared to $54 million in Q1 2022.
Despite the drop in crypto trading revenue, Robinhood reported a 26% increase in assets under custody, totaling $78 billion. However, only 15% of the assets, or $12 billion, are crypto assets, representing a 40% decrease from Q1 2022.
Robinhood’s total year-on-year trading revenue increased by 47.5%, thanks in part to the US Federal Reserve’s recent rate hikes, which led to increased interest earnings for the company. Q1 2023 revenue was up 16% from Q4 2022.
Despite the overall revenue increase, Robinhood saw a decline in monthly active users, with the number dropping from 15.9 million in Q1 2022 to 11.8 million in Q1 2023. The company’s CFO, Jason Warnick, attributed the decrease to a “tougher” macro backdrop affecting trading volumes and engagement with brokerages.
However, Robinhood CEO Vlad Tenev remained optimistic, pointing to strong net deposits and improving customer satisfaction in the face of uncertainty in the banking sector.
In other news, Robinhood announced plans to launch 24-hour trading in select exchange-traded funds and popular stocks like Tesla and Apple. The company will become the first US brokerage to offer round-the-clock trading in individual stocks, with the service available in a limited capacity starting next week and for all users by June.