- Robinhood announced its first quarter net loss as $511 million.
- The company earned $38 million in cryptocurrency trading revenue.
- Assets under custody increased by 26%.
Popular trading platform Robinhood released its quarterly revenue report with better-than-expected figures. However, there was a decrease in revenue related to cryptocurrency trading.
Robinhood’s Cryptocurrency Revenue Increased But Overall Losses Are Significant!
On May 10th, millennial favorite trading firm Robinhood released its earnings report for the first quarter of 2023.
The company reported a 47.5% increase in revenue for Q1, reaching $441 million, surpassing analysts’ estimates. For comparison, the company earned $299 million in net revenue for the same period in 2022. However, Robinhood announced its first quarter net loss as $511 million or $0.57 per share.
According to analysts’ survey, the trading firm was expected to lose $0.62 per share and earn $425 million in revenue.
Additionally, the online stock and crypto brokerage firm reported a 30% decrease in digital asset trading revenue. Robinhood earned $38 million in cryptocurrency trading in Q1, which is a 29.6% decrease from $54 million in Q1 2022.
Despite a 50% increase in crypto markets in the three-month period, the decline in cryptocurrency trading revenue continued.
Robinhood Increased Assets Under Custody
According to the SEC filing, the company reported a 26% increase in assets under custody, which reached $78 billion. It stated that this was supported by “higher market values for growth stocks and crypto assets and ongoing net deposits.”
Approximately 15% or $12 billion of these assets are in custody of crypto assets on the trading platform. This figure represents a 40% decrease from the same period last year.
In addition, monthly active users decreased to 11.8 million, down from 15.9 million in the previous year. Chief Financial Officer Jason Warnick said, “The broader macro backdrop was more challenging in terms of trading volumes and interactions with broker-dealers.”
CEO Vlad Tenev said, “Despite the uncertainty in the banking sector, we are seeing strong net deposits and improvement in customer satisfaction.”
“Despite the uncertainty in the banking sector, we are seeing strong net deposits and improvement in customer satisfaction.”
The company launched a new fiat-to-crypto on-ramp in late April and continues to stay connected to digital assets.
Robinhood Stock (HOOD) at $9 Levels!
Robinhood shares (HOOD) fell to $8.21 on May 4th, but are currently trading on NASDAQ at $9.49 in pre-market. Share prices have increased by 15.7% since the beginning of the year.
Bitcoin Miner Marathon Digital Reports Net Loss
Bitcoin mining giant Marathon Digital also released a revenue report this week. The company reported a net loss of $0.05 per share or $7.2 million for Q1 2023.
The company’s revenue was announced as $51.1 million for the quarter, showing a slight decrease from the Q1 revenue of the previous year.
Marathon President and CEO Fred Thiel said:
“After a turbulent 2022 that tested the resilience of our entire industry, we increased our hash rate, reduced our mining costs, and improved our balance sheet in the first quarter of this year.”
Marathon shares (MARA) rose by 9% during the day, reaching $10.15.
