Robinhood Q1 Revenue Up 16%, But Not In Crypto

Inventory and crypto investing app Robinhood reported $441 million in internet income in Q1 2023, up 16% from the earlier quarter.

Its elevated numbers, nonetheless, didn’t come from its crypto enterprise – which seems to be trending in the wrong way.

Crypto Down, Curiosity Up

Per the corporate’s first-quarter outcomes report on Wednesday, Robinhood’s transaction-based revenues elevated 11% quarter over quarter to $207 million. 

This included a 7% improve in choices income to $133 million, and a 29% improve in equities income to $27 million. However, crypto income declined by 1% to $38 million. 

The crypto determine can also be 30% down yr over yr from $54 million in Q1 2022, when the digital asset valuations have been considerably larger. Robinhood’s internet income over that point elevated 47.5%, from $299 million a yr prior. 

The corporate’s greatest earner since final yr was curiosity income. Which rose 25% to $208 million. Fee hikes from the Federal Reserve starting final yr can largely be thanked for this, which have been concurrently answerable for driving down each digital property and tech shares. 

Robinhood additionally introduced the launch of its 24-Hour Market, giving 24/5 buying and selling entry to fashionable ETFs and particular person shares equivalent to TSLA, AMZN, and AAPL. Crypto can already be traded 24/7 on the platform.

“We grew revenues 4 quarters in a row whereas attending to a leaner working mannequin,” mentioned Jason Warnick, Chief Monetary Officer of Robinhood Markets. “On the similar time, we delivered new merchandise and options that led to outsized enhancements in buyer satisfaction.”

Robinhood Companions With Self-Custodial Wallets

Robinhood enacted a number of vital layoffs final yr after overhiring throughout red-hot development in 2021, together with a 9% headcount discount in April, and a 23% layoff in August. 

Although its crypto income took one other hit this quarter, the tempo of the decline was a lot smaller than in earlier quarters, such because the 25% loss between Q3 and This fall 2022. 

Robinhood remains to be persevering with to develop crypto-related merchandise. In April, the corporate announced new integrations with sure self-custodial pockets suppliers letting customers buy cryptocurrencies straight from their very own pockets.