Robinhood (HOOD) shares were falling 7% in after-hours trading Tuesday after the zero-commission trading platform missed badly on revenue expectations as its cryptocurrency revenue fell sharply from the second quarter’s record high.
- Robinhood said its crypto revenues fell to just $51 million in the third quarter, down from a record $233 million in the second quarter. The company said the reduced crypto trading activity led to significantly fewer new funded accounts and lower revenue in the quarter as compared to the second quarter.
- Total revenue for the quarter was $365 million, short of analyst estimates of $437.1 million, according to FactSet. The company reported an adjusted net loss of $2.06 per share, versus analyst estimates of a loss of $0.67.
- Robinhood said that over one million customers have signed up for the waiting list for its crypto wallet, which is one of its “most heavily requested products.”
- The company also launched recurring crypto investments, allowing customers to automatically buy crypto, commission-free, on a schedule of their choice.
