Robinhood CEO says that even if first quarter revenue beats expectations, companies are diversifying away from volatile crypto revenue
As the crypto market recovers from historic defeat, Robin Hood, Online intermediary Offering digital assets, stocks and other investments is planning to lean towards other products despite increasingly relying on crypto trading volumes in recent years.
“It’s going to go up and down in terms of trading volume,” said Vlad Tenev, CEO of Robinhood. Revenue I will call shareholders on Wednesday to acknowledge the volatility of the crypto trademark. “We diversify our businesses outside of the crypto business. Crypto Transaction volume. ”
Robin Hood It reported $927 million in first quarter revenues on Wednesday. This slightly elicited revenues surged to a record $1 billion since the end of last year. DIP is partly because our crypto-related revenues fell 30% from $358 million in the last quarter to $252 million. Cryptocurrency trading volume on the platform will go from $71 billion in the fourth quarter to $46 billion in the first quarter.
Since introducing Crypto in 2018, the asset class has driven a significant portion of the Robinhood. This mainly results from sending customer trading orders to external companies called market makers. But that crypto revenues often came in Unpredictable waves– In 2021, revenue from Novelty Token Dogcoin helped fuel a record quarter, but afterwards Dried A few months later.
On his latest ride at Crypto Roller-Coaster, Robinhood won a surge in revenue last quarter after energizing President Trump’s election. But since then, it has been as low as $84,000 amid the broader market fallout from Trump’s trade war.
Crypto revenues fell from the previous quarter, but Robinhood’s revenue report broke analysts’ forecasts, which predicted lower volumes would have a significant impact on the company’s revenues. Robinhood reported earnings per share of 37 cents, surged past analyst expectations of 33 cents, he said. Wall Street Journal. The company’s revenues also increased 50% from the same period last year.
After the transaction, Robinhood shares rose almost 2% on earnings news.
This story was originally introduced Fortune.com