![]() ![]() ![]() The company stated that ongoing discussions are taking place with the relevant parties, but the timing and occurrence of the share purchase remain uncertain.Ĭoinciding with that day, Robinhood made an announcement regarding the implementation of round-the-clock trading for 43 of its highly sought-after exchange-traded funds (ETFs) and stocks, which encompass prominent companies like Apple, Tesla, and Amazon. In addition, Robinhood expressed its intention to potentially acquire a majority or all of the 55 million shares from Emergent Fidelity Technologies, an offshore investment vehicle utilized by FTX founder Sam Bankman-Fried to acquire an 8% stake in Robinhood. This net loss marks a 30% increase in losses compared to the previous year and represents the largest loss for Robinhood since Q3 2021. The expense arose from the cancellation of market-based restricted stock unit awards by the co-founders in February 2023. The company clarified in a press release that this loss was primarily influenced by a one-time expense of $485 million related to share-based compensation. Robinhood’s overall financial performance resulted in a net loss of $511 million. Nevertheless, this figure still represents an increase of 400,000 users from the previous quarter. While the first quarter of 2022 witnessed nearly 16 million monthly active users, the most recent earnings report indicated just under 12 million users. ![]() The number of monthly active users on the Robinhood platform also experienced a year-on-year decrease. However, it witnessed a substantial 40% decline, plummeting to $1.2 trillion on the corresponding date this year. The global market cap for cryptocurrencies stood at $2.1 trillion on March 31, 2022. The decrease in Robinhood’s crypto revenue aligns with the overall downturn in market capitalization for digital assets during the same period. During the first quarter of 2023, the company disclosed net revenue of $441 million, indicating a substantial surge of approximately 47.5% in comparison to the corresponding period in 2022 when it reached $299 million. Robinhood experienced a remarkable increase in its total revenue compared to the previous year, despite the decline in crypto trading revenue. However, this figure indicates a 40% decline when compared to the corresponding period last year. The primary source of earnings was interest, attributable to the recent and rapid rate hikes by the United States Federal Reserve.Ĭurrently, Robinhood holds approximately $12 billion worth of crypto under its custody, denoting a 50% rise over the quarter. Moreover, Robinhood experienced a 16% increase in revenue from the previous quarter. The earnings report for Q1 2023, published on May 10, revealed that the company generated $38 million in crypto trading revenues during the period, marking a 30% decrease compared to the same quarter in 2022 when it reached $54 million. Robinhood’s Q1 2023 Results Show Increase in Overall Revenue Despite Crypto Revenue Drop Robinhood, the popular cryptocurrency and stock trading platform, has released its first quarter results, disclosing a significant decline in revenue for its crypto trading business. ![]() Join Our Telegram channel to stay up to date on breaking news coverage ![]()
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