Robinhood CEO says firm is diversifying away from volatile crypto revenue even as Q1 earnings beat expectations
While the cryptography market is recovered from a historic rout, Robinhood, online brokerage which offers digital assets, actions and other investments, plans to look at its other offers, although it is increasingly important in the volume of cryptographic trading in recent years.
“This will go up and down in terms of negotiation volumes,” Robinhoood CEO CEO said on Wednesday during a profits call with shareholders, recognizing the volatility of the crypto brand. “We diversify the company outside the Crypto company, which will make us less dependent on the volumes of cryptographic transactions.”
Robinhood said $ 927 million in quarter on Wednesday, a slight withdrawal from the end of last year when revenues reached a record of $ 1 billion. The drop is due, in part, to the turnover linked to the company's crypto, in a fall of 30% of $ 358 million in the last quarter to $ 252 million. The crypto trading volume on the platform plunged $ 71 billion in the fourth quarter to $ 46 billion in the first quarter.
Since the introduction of Crypto in 2018, the asset class has grown up to generate substantial income from Robinhood, which mainly comes from sending their clients' negotiation orders to external companies called market manufacturers. This Crypto turnover, however, has often come to unpredictable waves, including in 2021. dry months later.
During his last race on the cryptographic roller coaster, Robinhood collected an increase in income in the last quarter after exuberance in the election of President Trump, which brought Bitcoin to a record summit of $ 109,000 in early January. Since then, however, he has dropped as low as $ 84,000 in the midst of wider market war in Trump's trade war.
While crypto’s revenues have dropped since the last quarter, the Robinhood's results report beat the analyst's forecasts that expected a drop in commercial volume to have a greater impact on business income. Robinhood declared a profit per share of 37 cents, by increasing the expectations of the 33 cents analyst, according to data from the Wall Street Journal. Company income has also increased by 50% since the same period last year.
In trade after hours, Robinhood's equity price increased by almost 2% on profits on profits.
This story was initially presented on Fortune.com
