Robinhood ‘Hulk Smashes’ Q2 Revenues as a push to diversifying revenue



Online brokerage Robinhood spiked past analyst expectations when it recorded strong financials in the second quarter on Wednesday. It reported revenues rose 7% to $989 million, breaking the fact set consensus of nearly $915 million. It also reported an analyst’s 31 cent consensus of 42 cents earnings per share.

The proceeds from fintech Hulk Smash (d) were reported in a short note after Robinhood posted its quarterly results, said Dan Dref, senior analyst at Mizuho Securities.

Online securities company where users can trade stocks and digital assets Bitcoin and Ethereumposted flashy results despite a decline in crypto trading revenue. This has soaked 36% from the last quarter to $160 million.

In the past, Robinhood’s quarterly fate has been closely linked to the boom and bust in retailer activity in the market. For example, in the early 2021 cryptocurrency epidemic, revenue from crypto transactions accounts for 41% of the company’s top line. However, in the recent so-called cryptography winter, that percentage was immersed at 5% in the third quarter of 2023.

As Robinhood got on the ups and downs of its stock and crypto trading cycle, the company began building its business to avoid relying on the whims of retailers. We expanded our subscription business and launched our own Credit Cardand ask users to trade on margins or take out loans to buy and sell more shares. I also pushed that To the bank Expand your business in Europe and the UK while working

“When we made it public in 2021, we felt like we were far more vulnerable than we are today,” Robin Hood CEO Vlad Tenev said in a revenue call Wednesday.

Cash generated from transactions still constituted a large portion of the company’s revenue in the second quarter, but almost 30% of the top line came from a portion of the business that generates interest. These include money from users in margin trading and interest in the user’s cash balance.

And nearly 10% of second quarter revenue came from subscription businesses where users pay monthly fees and receive benefits such as yields on app cash reserves.

“When you look at what you expect to deliver in the short-term, medium-term, long-term, it’s pretty packed,” Tenev says. “So this is probably the least diverse you shouldn’t see.”

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