Robinhood Markets Inc (NASDAQ:HOOD) reported third-quarter numbers on Tuesday, which outlined a decline in “crypto activity” from record highs in the preceding quarter.
What Happened: Robinhood said that the decline in cryptocurrency activity “led to fewer new funded accounts and lower revenue compared to the second quarter.”
Part of this decline was due to a fall in demand for Dogecoin (CRYPTO: DOGE), which touched an all-time high of $0.74 in the first half of the year. The meme coin has fallen 64.99% from those levels. At press time it traded 2.06% lower over 24 hours at $0.26.
“In Q2, the story was about crypto, especially DOGE,” said Robinhood’s Chief Financial Officer Jason Warnick in a call with reporters, adding that the focus shifted to equities in the latest quarter, Decrypt reported. Warnick said the cryptocurrency market was “idiosyncratic.”
Robinhood’s cryptocurrency revenue fell to $51 million in the third quarter from $233 million in the prior quarter, a decline of 78%.
The company reported a loss per share of $2.06, missing a Street estimate of loss per share of $1.36.
On Tuesday, Robinhood shares fell 8.47% in the after-hours trading to $36.22 after ending the regular session 1.44% higher at $39.57.
See Also: How To Buy Dogecoin (DOGE)
Why It Matters: Even though Robinhood saw a quarter-over-quarter decline in cryptocurrency revenue, it saw those numbers rise 860% on a year-over-year basis.
The trading platform noted that the waitlist for its cryptocurrency wallets now exceeds 1 million. “This quarter was about developing more products and services for our customers, including crypto wallets,” said Vlad Tenev, CEO of Robinhood.
Robinhood pointed out that it was building its wallets in “public” and was “gathering critical feedback from customers, and employing new multi-factor authentication verification in-app to ensure a secure and reliable experience.”
Robinhood wallet date remains uncertain but beta testing was announced last month and the company was seen testing out several new features. Meanwhile, some cryptocurrency enthusiasts are asking if Robinhood would list Shiba Inu.
The wait for Shiba Inu or another coin to list on Robinhood may be longer, as per Warnick, who cited increased regulatory scrutiny of the segment as a factor, reported Decrypt.
Photo: Courtesy of Robinhood
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