+9 C°
Traffic jam:   0

Robinhood revenues double, but company warns of slowdown in trading

19 August 2021
2 min.
Robinhood revenues double, but company warns of slowdown in trading

Doubling revenues

Shares in Robinhood fell 12% as a forecast slowdown in trading in the current quarter outweighed news that the company doubled its earnings in Q2.

Online trading company Robinhood (HOOD) reported its first quarterly results as a public company on Wednesday after the close of trading.

Shares in Robinhood, which began trading on the Nasdaq on 29 July, were up 42.7% from the first day of trading, but were down 29% from the high of 4 August.

The company's shares were down 11.85% in after-hours trading on Wednesday.

The company reported a second-quarter 2021 loss of $502mln, or $2.16 per share. This is in line with Robinhood's projected loss range of $487mln to $537mln. However, in the same quarter last year, the brokerage posted a profit of $58mln or $0.09 per share.

Robinhood's total quarterly revenue rose 131% from a year ago to $565mln. Most of Robinhood's revenue, namely $451mln, came from payments for directing deal flow from investors to market makers such as Citadel.

Cryptocurrency trading on the platform brought Robinhood about half, namely $233m in revenue, up from $5m a year ago.

The company said on 18 August that Dogecoin, which was originally created to mock "crypto hype", accounted for 62% of cryptocurrency trading volume.

Meanwhile, equity trading revenue fell 26% to $52m, down from $7mln in the same quarter a year ago. As a result, the share of income from equity trading fell from 38% to 12%.

Options trading brought Robinhood $165m, down from $111mln a year ago.

The company reported an increase in the number of monthly active users on its platform to 21.3mln, with a total of 22.5mln accounts on the platform. However, Robinhood's average revenue per user fell to $112 from $137 in the previous quarter.

Assets on the Robinhood platform rose 205% to $102bn, up from $33bn in the second quarter last year.

The company also expects the "decline in trading activity in the industry" to have an impact on falling revenues, as well as a decline in the number of absolute net accounts in the trading app in Q3. Trading volumes on major cryptocurrency exchanges fell by more than 40% in June as cryptocurrency prices fell.

Companies1 in the news

1 place


Rating companies
159 Mention
Dow Jones
121 Mention
46 Mention
43 Mention
34 Mention
32 Mention
30 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year