Robinhood, the US-based cryptocurrency and inventory buying and selling app, has reported a 30% year-on-year income decline for its cryptocurrency buying and selling enterprise in Q1 2023. The corporate disclosed its earnings on Could tenth, revealing that it earned $38 million in cryptocurrency buying and selling revenues through the interval, down from $54 million in Q1 2022.
Robinhood’s crypto enterprise faces challenges
Regardless of the decline in cryptocurrency buying and selling income, Robinhood’s complete web revenues elevated year-on-year, with Q1 2023 producing $441 million in comparison with $299 million in 2022, a rise of roughly 47.5%. The primary quarter of 2023’s revenues have been additionally up 16% from the earlier quarter.
At current, the buying and selling app has custody over roughly $12 billion price of cryptocurrencies, which represents a 50% enhance over the quarter. Nonetheless, it’s down 40% in comparison with the identical interval in 2022.
Robinhood’s CEO, Vlad Tenev, attributed the decline in cryptocurrency buying and selling income to a lower in market volatility. He additionally emphasised that the corporate’s core inventory buying and selling enterprise continued to be a key driver of progress, accounting for the majority of its income.
The agency filed for an IPO on Could tenth
Robinhood’s earnings report got here on the identical day that the corporate filed for an preliminary public providing (IPO). The agency filed a confidential draft registration assertion with the US Securities and Trade Fee (SEC), which suggests it could preserve its financials confidential till nearer to the time of its public itemizing.
Robinhood has been the topic of a lot scrutiny in current months as a consequence of its involvement within the GameStop brief squeeze saga. The corporate was accused of defending Wall Avenue hedge funds by limiting buying and selling in GameStop and different shares, sparking a public backlash.
Regardless of the controversy, Robinhood has seen vital progress in its person base, notably amongst youthful buyers. The platform has grow to be a well-liked selection for folks trying to spend money on cryptocurrencies, shares, and different property, due to its user-friendly interface and commission-free buying and selling mannequin.
General, Robinhood’s Q1 earnings report highlights the corporate’s continued progress, even because the cryptocurrency market experiences a interval of consolidation. The agency’s IPO submitting means that it’s trying to capitalize on its reputation amongst retail buyers and proceed increasing its enterprise within the coming months.