Online broker Robinhood publishes financial results for the third quarter of 2021. The company reported weak quarterly sales., as users started trading less cryptocurrency. After the report, the broker's shares fell by 9%, to 36 $.
Robinhood's revenue is up by 35%, up to 365 million dollars. But regarding the previous, second quarter sales fell by 35%. The company's revenue also fell short of analysts' expectations., who counted on 432 million. Revenue per user fell by 36% year to year, with 102 to 65 $.
And here is how Robinhood's revenues were distributed by segments.
Transaction-based revenue — 267 млн. This is the main income of the broker: the company sells data on transactions of its clients to market makers in exchange for a portion of the profits. Transactions on the stock market in options and shares brought in 214 million - the same, how much in the previous quarter. Transactions in cryptocurrency added 51 million to revenue - several times less compared to the previous quarter. Then the company earned 233 million on cryptocurrency.
“In the second quarter there was a huge interest specifically in dogecoin and we were able to attract many new customers to the platform. But we are thinking about investing in cryptocurrency in the long term. AND, honestly, here we cannot predict our incomes”, — said in the company.
At the end of August it became known, that the US Securities and Exchange Commission (SEC) can prevent brokers from selling trade data. Here is a "clear conflict of interest", said then the head of the commission.
The SEC's area of responsibility is stock market, in particular stocks and options. But the commission does not yet control the cryptocurrency market. This is why diversifying income through cryptocurrencies is important for Robinhood.
Net interest revenue — 63 млн. This is net interest income. This is how the company earns on the margin positions of clients.. Here, over the year, revenue increased by 26%.
Other revenue — 35 млн. Sale of services, such as premium subscriptions. Revenue growth year-on-year 101%.
According to Robinhood, in the fourth quarter, revenue will be about 325 million. Low client activity may persist until the end of the year, the company considers.
Robinhood shares began trading on the stock exchange three months ago at a price of 38 $. During this time, taking into account the recent fall, the shares of the broker fell by about 5%.
