- Robinhood released its third quarter report of this year.
- The third quarter 2022 of this platform ended on September 30, 2022.
On November 2, Robinhood, an online trading brokerage released its third quarter report of this year. The platform has announced the news through a Twitter post stating:
“We just announced our financial results for the third quarter. Find information on our performance at investors.robinhood.com.”
The crypto revenue of this report came in far below expectations. In line with the reports released by Robinhood, the total net revenues increased by 14% taking it to $361 million whereas the crypto revenue fell 12% which took the estimation to $51 million. In the second quarter, the crypto revenue was increased by 7% taking it to $58 million when in fact, in Q1 of 2022, the crypto revenue fell by 39% still it was estimated at $54 million.
In line with GAAP, the net loss was estimated at about $175 million in Q3. The result was up $120 million as compared to the second quarter.
Apart from this, Robinhood has attained its set target of approaching EBITDA profitability. In regard to this accomplishment, the chief executive officer and co-founder of Robinhood markets, Vlad Tenev stated that “The target is achieved a quarter before it was actually planned.”
Robinhood’s fall in MAU
Another loss faced by the company is a fall in its monthly active users. Robinhood’s MAU collapsed by 1.8 million. According to the company, the monthly active users are the unique users who carry out any one of these mentioned topics: making a debit card transaction, a transition between two different screens on mobile, loading a page in any web browser at the time they are logged into their own account.
At the time of writing, the net cumulative funded accounts of the platform are 22.9M with 12.2 million monthly active users. The platform keeps $65 B assets under custody and over 80% organic or referred new customers.
The volatile and bearish market may be the biggest factor for the declination of crypto revenue as well as the count of monthly active users. However, it is astonishing to witness that the net loss and the assets under custody have improved as compared to the second quarter of this year.
Source: https://www.thecoinrepublic.com/2022/11/03/robinhoods-crypto-revenue-headed-for-a-loss-in-the-third-quarter/