Key Takeaways
- In Q1 of 2023, Robinhood experienced a 16% rise in revenue compared to the previous quarter.
- Robinhood now holds $12 billion worth of crypto, which represented a 50% rise over the quarter.
- Robinhood’s monthly active users also witnessed a drop going from nearly 16 million in 2022’s first quarter to just under 12 million in Q1
Leading crypto and stock trading application, Robinhood witnessed a 30% year-on-year revenue fall for its crypto trading operations in the first quarter of 2023.
As per Robinhood’s 2023 earnings, the firm earned $38 million in crypto trading revenues over the period, down from $54 million in Q1 2022
As per sources, in Q1 of 2023, Robinhood experienced a 16% rise in revenue compared to the previous quarter. This increase in earnings is thought to be partially attributed to the rate hikes implemented by the United States Federal Reserve. Reportedly, Robinhood now holds $12 billion worth of crypto, which represented a 50% rise over the quarter.
Apart from this, the number of monthly active users on Robinhood experienced a year-on-year decline, dropping from approximately 16 million in Q1 of 2022 to nearly 12 million in Q1 of 2023.
After exceeding quarterly revenue projections and confirming plans to introduce 24-hour trading services, Robinhood Markets Inc’s stock prices rose by 2.4% during extended trading.
As per the earnings report, Robinhood’s monthly active users also witnessed a drop going from nearly 16 million in 2022’s first quarter to just under 12 million in Q1 2023.
Robinhood also reportedly stated its intention to acquire “most or all” of the 55 million shares held by Emergent Fidelity Technologies, an offshore investment vehicle used by FTX founder Sam Bankman-Fried to obtain an almost 8% ownership stake in Robinhood.
Robinhood’s exposure to now-bankrupt FTX’ s sister trading firm Alameda Research caused quite a stir when it was revealed. In May 2022 Alameda Research disclosed a 7.6% share in Robinhood. Reportedly, in November 2022, Alameda used Robinhood shares as part of its collateral for a transfer of at least $4 billion from FTX
The earning reports come amid the firm announcement that it will soon allow users to engage in 24-hour trading of selected exchange-traded funds and popular stocks such as Apple and Tesla.
According to Robinhood CEO Vlad Tenev, the 24-hour trading service will permit trading in 43 securities around the clock, from 8 p.m. ET on Sunday to 8 p.m. ET on Friday, to include additional securities at a later date.
