Robinhood Markets Inc. shares fell in late trading after the online brokerage reported revenue that missed estimates as lower cryptocurrency volumes dragged down its transaction-based revenue.
The company reported net revenue of $467 million, which missed the average analyst estimate of $478.9 million but was a 29% jump on the same period a year ago. Transaction-based revenues fell 11% on the prior year to $185 million, largely due to lower crypto notional volumes which fell 55% on the year, Robinhood said Tuesday in a statement.
Shares in the company were down about 7% in late trading in New York. They’re up nearly 20% this year.
The pioneer of commission-free trading apps also said it plans to launch both EU crypto trading and its UK brokerage operations in the coming weeks, as it pursues its global expansion, according to the statement.
Robinhood allows users to trade several cryptocurrencies, including Bitcoin, Ethereum, Dogecoin and Shiba Inu tokens, according to its website. Catering to small traders, the firm benefited from a wave of crypto investing during the pandemic — but that enthusiasm has been waning following a string of high-profile failures. In June, Robinhood said it would remove three tokens from its crypto trading platform — Solana, Cardano or Polygon — after a high-profile regulatory crackdown on some of the industry’s biggest exchanges.
