Cryptocurrency investment app Robinhood’s financial report for the third quarter of 2021 shows a significant decline in crypto-related transactions compared to the previous quarter.
According to the report, Robinhood recorded $51 million in cryptocurrency transactions, which accounts for 14% of the company’s total revenue for the quarter that ended on September 30, 2021.
While the crypto volume is up 860% compared to the $5 million recorded in Q3 the previous year, the company’s recently-concluded financial report is nothing close to its 2021 second-quarter volume, where a whopping $233 million was recorded in crypto transactions alone.
Robinhood’s total revenue for the quarter surged 35% to $365 million compared to Q3 2020, with cryptocurrency trading accounting for a meager 14%, the report suggested.
The company which recorded $565 million in revenue in Q2 2021, initially predicted that its revenue could plunge due to the decrease in crypto trading.
Commenting on one of the reasons that caused the low revenue, Vlad Tenev, co-founder of Robinhood Markets, said the firm was mainly focused on developing new products and services.
“This quarter was about developing more products and services for our customers, including crypto wallets,” Tenev said in a statement.
Tenev noted that since the company announced that it would soon launch a cryptocurrency wallet last month, over one million users have joined the wallet’s waitlist till date.
Robinhood Losses Negatively Impact HOOD
Notably, the financial report also saw the company record a total net loss of $1.32 billion, with Robinhood losing nearly $2 per share.
The news of the loss did not go down as well with Robinhood’s investors as expected, and the company’s stock, HOOD, plunged by more than 11% moments after the report was published.
Per data on MarketWatch, HOOD’s price had peaked at $40 as shareholders hoped for a positive report; however, investors’ expectations were cut short following the negative report thus forcing the stock price to dip to $35.6, at the time of writing.
Irrespective of the poor report, there is a possibility that Robinhood’s financial result for Q4 2021 would end on a positive note as the cryptocurrency trading activities have picked up momentum, as traders continue to indicate bullish signals.