The newly public company reports first earnings, acknowledges over 60% of customers used crypto.
Users Flock to Crypto
Robinhood posted some remarkable crypto-heavy net revenue earnings in the second-quarter report from last week. The popular Financial Technology firm doubled its revenue and reported a significant increase in cryptocurrency users.
The first earnings report since the company went public in late July revealed a revenue double up to $565 million. Revenue from crypto trading totaled $233 million, over half of the $451 million of transaction-based revenue. Cryptocurrency’s revenue share increased to 51%, up from 17% in the first quarter of 2021.
“A substantial portion of the recent growth in our net revenues earned from cryptocurrency transactions is attributable to transactions in Dogecoin,” the company admitted in its July S-1 filing with the Securities and Exchange Commission.
The company recognizes its need for crypto, especially Dogecoin.The amount of crypto transactions and the weight that crypto holds on the platform is considerable.
“If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition, and results of operations could be adversely affected” stated the Q2 report.
The company confirmed that it does expect their subsequent quarterly earnings to be high but they expect a drop in accounts.
Commission-Free?
Users may be getting wise to the fact that 41% of the company’s revenue came from crypto trading commissions on their “commission-free” crypto trading app, as spotted by BSC.News’ own KCrypto or Ben.
Robinhood currently acts as a nice transition platform for many from traditional investing into crypto and decentralized finance (DeFi), and it’s great to see them help bridge the gap for users to crypto. But once users become hip to what can really be done with DeFi, they are more than likely to get a decentralized wallet
It is often as easy as starting a RobinHood account––and drop the act for some real yield and gains. It will be interesting if the company begins to move to look a bit more like Coinbase. Time will tell.
Source : bsc.news
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