Robinhood looks to beef up crypto offering after Q4 revenue slide

Crypto and equities trading platform Robinhood is looking to expand its crypto offerings, despite missing revenue targets for Q1 2022 and posting a decline in crypto transaction-based revenue.

Robinhood posted its fourth quarter earnings today, reporting total revenues of $363 million. Though that’s an increase compared to Q4 2020, Robinhood’s projections for Q1 2022 are falling short of Wall Street’s expectations. The firm expects to rake in $340 million, considerably less than the projected $448.2 million.

In Q4 2021, crypto saw a mild decline in its share of the firm’s transaction-based revenue. Crypto made up 18.18% of the firm’s transaction-based revenue, down from 19.1% the previous quarter.

Crypto transaction-based revenues increased by 304% compared to Q4 2020, clocking in at $48 million, but were considerably less than the highs of Q2 2021. The firm’s crypto activity has declined since then.

Still, the firm is looking to grow its crypto offerings in 2022, eyeing a Q1 release of its crypto wallet and making plans to launch its own crypto platform some time this year. It plans to focus on the international expansion of those offerings.

“Robinhood has set aggressive goals to start opening its crypto platform up to customers internationally in 2022,” said the firm in its report. “The company believes in the immense potential of the crypto economy and sees a big opportunity in serving customers across the globe.”