thecoinrise.com
American financial service provider Robinhood has released its third-quarter earnings report and based on that report the firm netted a loss of $175 million. Remarkably, the online brokerage firm recorded $51 million in crypto revenue in Q3, a 12% decline from its $58 million gain in the previous quarter.
It is believed that this downtrend was a consequence of the 12% quarter-on-quarter decrease in monthly active users (MAU) totaling the loss of 2 million users and a 24% quarter-on-quarter drop in notional volume.
Generally, the total net revenue of Robinhood was $361 million which is a 14% increase from Q2 showing that the firm’s transaction-based revenue within equities and options asset class grew upwards unlike that of crypto.
Robinhood Executives Not Giving up on Crypto
Taking note of the drop in MAU over the months (from Q3 down to Q1) leading to the plummeting trading volume, the company sees it as a moment when “customers continued to navigate the volatile market environment.” Compared to Q2, Robinhood attested to the fact that it did better even with the number of losses in MAU and trading volume.
“In the third quarter, we achieved our goal of reaching adjusted EBITDA profitability, a quarter earlier than planned. We delivered on top feature requests for customers including advanced charts, options in cash accounts, instant withdrawals, and our self-custody, web3 wallet. In the next week, we are raising the yield on uninvested cash for Gold members – making it one of the best rates in the industry,” Vlad Tenev, the Chief Executive Officer and Co-Founder of Robinhood Markets said.
Not deterred by the losses especially, in the crypto ecosystem, the company’s executives declared that more resources would still go into the digital assets investments. Already, the firm has chosen the United States dollar-pegged USD Coin (USDC) as the first stablecoin on its platform.
In the near future, there are plans to back more cryptocurrencies and release a new international retail-focused wallet and Non-fungible token (NFT)-related features on its platform. The Robinhood Crypto Wallet entered the beta testing phase at the beginning of this year. Amazingly, it has more than 1 million users signed up on its waitlist.