Cryptocurrency and stock trading app Robinhood reported its first-quarter results, with the company reporting a 30% year-over-year decline in revenue from its cryptocurrency trading business.
Robinhood's first-quarter 2023 earnings, released on May 10, showed $38 million in cryptocurrency trading revenue during the period, down from $54 million in the first quarter of 2022. However, Robinhood's total revenue is up year-over-year, with revenue ue of $ 441 Million in Q1 2023 and Net Income of $ 299 Million in Q1 2022, an increase of roughly 47.5%. ITS Revenue for the First Quarter of 2023 WAS ALOM THE PRE vious quars. Interest is the company's biggest source of revenue Thanks to The recent rapid rate hikes by the US Federal Reserve.
The trading app currently hosts about $12 billion worth of cryptocurrencies, up 50% from the quarter but down 40% from a year earlier. The trading app's decline in cryptocurrency revenue is in line with a 40 percent drop in the digital asset's market capitalization over the same period. According to CoinGecko, the global cryptocurrency market will be worth $2.1 trillion by March 31, 2022, compared to $1.2 trillion during the same period this year.
Robinhood's monthly active users also fell year-over-year, from nearly 16 million in the first quarter of 2022 to nearly 12 million in its latest earnings report. However, this is still an increase of 400,000 from the previous quarter. Overall, Robinhood recorded a $511 million net loss, impacted by a "one-time $485 million stock-based compensation charge" as its co-founders "cancelled their 2021-based market restricted stock unit awards," the company explained in an accompanying press release.
The loss was Robinhood's biggest since the third quarter of 2021, with losses up 30% year-over-year. The company also said it "continues to seek to purchase most or all of the 55 million shares" from Emergent Fidelity Technologies, the offshore investment vehicle used by FTX founder Sam Bankman-Fried to buy a nearly 8% stake in Robinhood.
"Discussions are ongoing with relevant parties," it added. "We cannot predict when or if stock purchases will occur."
That same day, Robinhood said it would begin rolling out 24-hour trading for 43 of its most popular exchange-traded funds (ETFs), as well as stocks such as Apple, Tesla and Amazon.
The rollout will begin on May 16 and is scheduled to be available to all users in June. Robinhood shares ended the day slightly lower but were up 3% in after-hours trading, according to Google Finance data.
