The trading platform’s revenue was significantly lower than expected in the third quarter.
Trading platform Robinhood became known to the world during the Gamestop drama earlier this year. Later it was released to the public, which has been somewhat successful so far.
But on Tuesday evening, the company was punished severely in the wake of trading on Wall Street after the company reported third-quarter results. The company’s share is down about nine percent at 23:00.
This comes after revenue in particular was much weaker than analysts had expected. This quarter, revenue ended at $365 million, versus analysts’ expectations of $431.5 million, writes Refinitiv. CNBC.
Especially in cryptocurrency trading, transaction-based revenue has been disappointing. In total, the company generated $51 million in cryptocurrency revenue in the quarter. By comparison, of this trade in the second quarter was $ 233 million.
CFO Jason Warnick admits to CNBC that the second quarter was particularly high with interest in the cryptocurrency Dogecoin.
– We love when moments like this happen. This is a good way to attract many new customers to the platform. But we’re really thinking about investing in crypto for the long-term, Warnick says.
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