Investing platform Robinhood (HOOD) reported third-quarter revenue that missed Wall Street analyst estimates.
- Robinhood’s third-quarter revenue rose 35% to reach $364.9 million compared with $270 million in the third quarter of 2020 but missed an estimate of $423.9 million.
- The average revenues per user plunged 36% to $65 compared to $102 in the same period last year.
- For the full year, the company’s annual revenue forecast of less than $1.8 billion missed the Wall Street estimate of $2.03 billion.
- The company reported that cryptocurrency activity dropped from record highs posted in the prior quarter, leading to fewer new funded accounts, a decline in net cumulative funded accounts, and lower revenue in Q3 of 2021.
- Vlad Tenev, CEO and co-founder, stated that more than one million people had joined the crypto wallets waitlist up to date.
Robinhood has cautioned of “seasonal headwinds” across the sector going into the second half of the year that could lead to lower revenues and fewer new funded accounts.
HOOD down -9.30%, Pre-market tradingSource: Robinhood
