Online trading brokerage firm Robinhood reported $51 million in cryptocurrency revenue in the third quarter, down 12% from $58 million in the second quarter.
Robinhood announced in August that it had reduced its staff by 23%, or 780 people, to reduce costs due to the continuing decline in the number of monthly active users (MAU).
Earlier in the year, Robinhood had cut about 9% of its workforce.
The Number of Active Users of the Company Decreases With the Decline in the Cryptocurrency Market
In the third quarter, Robinhood’s monthly active users fell to 12.1 million, from 14 million in the second quarter and 15.9 million in the first quarter, while the company said that “customers continue to move forward in the volatile market environment.” The company’s monthly active users peaked at 21.3 million in the second quarter of 2021.
In September, Robinhood released a beta version of its Polygon-based Web3 wallet to 10,000 users.
The company said that wallet users will be able to buy and sell more than 20 cryptocurrencies without paying fees, as well as connect to decentralized applications and earn returns on assets.
Robinhood posted an adjusted loss of 20 cents per share in the third quarter, above the consensus analyst estimate of 31 cents per share, according to FactSet. Revenue of $361 million was slightly below analyst estimates of $362 million.
Robinhood shares rose 2.6% to $1170 in after-hours trading Wednesday. The company’s stock has lost nearly 34% in total since the beginning of the year.
The company that previously only allowed stock trading, bitcoin and has experienced a huge increase in revenues since incorporating cryptocurrencies.
*Not investment advice.
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