Crypto: Robinhood revenues collapsed in the first quarter of 2023

Robinhood has been underperforming for a few months. This is especially true when it comes to the profits made by the platform on fees in crypto transactions. Obviously, this downtrend has not reversed yet.

Robinhood lost 30% of profits year-on-year

Robinhood continues the poor performance. Indeed, the company had lost 24% of its profits in crypto transaction fees in the fourth quarter of 2022. This time, these are the firm’s revenues which have fallen.

This is particularly what Robinhood’s activity report for the 1er quarter of 2023. Figures for the period show that crypto trading activities brought in $38 million in profit. A result well below the $54 million achieved in 1er quarter 2022.

This poor performance is not the only one. Indeed, Robinhood has also seen its market cap plummet year-over-year. The latter rose from $2.1 trillion as of March 31, 2022, compared to $1.2 trillion as of March 31, 2023.

This is an astronomical sinking of around 40%. A situation, aggravated by a substantial drop in the number of active monthly users of the platform. This has thus increased from 16 million on 1er quarter of 2022 to just under 12 million in the 1er quarter 2022.

Positive note despite everything?

Yet, to be mistaken, Robinhood’s quarterly performance chart is not as bleak as it seems. For example, a year-over-year comparison of annual app revenue signals bullish momentum.

Thus, Robinhood earned a net income of $441 million at the end of 1er half of 2023. This figure being only $299 million as of 1er half of 2022, this is therefore an increase of approximately 47.5% achieved by Robinhood.

Moreover, a note of hope exists for the platform. Stakeholders are actively working to buy back the 55 million shares of Emergent Fidelity Technologies. It is the founder’s offshore investment vehicle of FTX, with around 8% stake in Robinhood.

For the time being, it is not certain that the operation will prosper. But the fact remains that Robinhood’s financial situation could improve if successful. What potentially compete with CashApp, which has achieved a more satisfactory first quarter.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Tremplin.io!

Similar Posts