Robinhood edges past revenue estimates on crypto boom
Reuters
Published Jan 28, 2022 08:07
Updated Jan 28, 2022 08:36
(Reuters) -Commission-free brokerage Robinhood Markets Inc (NASDAQ:HOOD) edged past analysts' estimates for quarterly revenue on Thursday as strong crypto trading boosted transaction volumes at the online brokerage, and it posted a net loss for the period.
Robinhood, in its third set of results as a public company, posted total revenue of $363 million for the fourth quarter ended Dec. 31, compared to $318 million a year earlier.
Analysts on average had expected revenue of $362.14 million, according to IBES data from Refinitiv.
Robinhood reported a net loss of $423 million or $0.49 per share in the three months ended December. A year earlier, which was before its IPO, the company posted net income of $7 million or $0.01 per share.
Transaction-based revenue from cryptocurrencies jumped 304% to $48 million, while revenue from equity trading declined 35% to $52 million.
Robinhood enjoyed a strong run during the pandemic, with homebound investors using its app to trade stocks and other assets. It was at the center of a trading mania for meme stocks in January last year.
Trading activity rose during the pandemic when the Federal Reserve injected massive liquidity into capital markets and investors raced to cash in on the boom.
But the Fed is expected to scale back asset purchases and raise interest rates, which analysts expect will put a damper on trading.
Cryptocurrencies have been hammered recently. Bitcoin , the largest cryptocurrency, plunged 50% to $32,951 last week, lowest since July last year.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.