Robinhood’s sales revenue for Quarter three was $565 million, vs the expected $521.8 million. More clients traded crypto, accounting of the crypto volume, and most of it was in dogecoin. Dogecoin was made famous by Elon Musk’s tweets and gained popularity on social media, resulting in the coin value surges.
Active traders’ numbers doubled to 21.3 million in quarter two, vs the 10.2 million last year during the same period.
However, profits declined, and the company lost $2.16 per share or a total net loss of $502 million. They were surpassing Wall Street’s estimations.
Robinhood already cautioned that the third-quarter outlook would be less promising since this period is a weak season for stocks, with low trading volumes. Furthermore, there will be fewer new accounts than in the previous quarter. The stock declined by 8% after it increased by almost 7%, ahead of its earnings report.
Robinhood’s debut on the stock market was off to a rocky start, with stocks falling by 8%. The company has been the centre of controversy relating to the GameStop saga. When they prevented clients from purchasing the stock earlier in the year.
Furthermore, a 20-year-old trader committed suicide after wrongfully thinking he owed $730,000 to the company, his family sued Robinhood, and they reported that they settled.
Robinhood’s customers are still loyal
Despite all this drama surrounding the platform, their shares reached record highs of $85, a 125% gain from its initial public offering price of $38.
The shares have dropped to $50, and the company’s valuation is sitting at over $40 billion.
Following a similar move from AMC, Robinhood held a conference call where retail investors could pose questions.
And the popular questions were around the addition of new products such as 401(k) retirement accounts, crypto wallets, and plans around international market launches. Investors also requested if the company would offer merchandise like branded hoodies and hats.
This type of conference call to connect directly to clients was a way of Robinhood making amends to their clients who have been let down by the events in the last few months.