In the fourth quarter of 2022, the online broker Robinhood’s revenue from cryptocurrency-related activities fell 24%, to $39 million. The company said so in the report.
Only in the fourth quarter of 2020 did the firm earn less from cryptocurrency transactions ($12 million). Since then, the figure has fluctuated from $48 million to $233 million.
Total quarterly revenue from operations fell 11%, to $186 million — the lowest in the last two years.
Aggregate revenue rose 5%, to $380 million, helped by a 30% increase in net interest income to $167 million.
Net loss was $166 million versus $175 million in the July–September quarter.
The decline in crypto-focused revenue at Robinhood was attributed to a drop in the number of executed orders (down 3% quarter over quarter) and the value of settled trades (down 22%).
The amount of digital assets held in custody declined by 10%, to $8 billion.
The company noted that the crypto-wallet waitlist had surpassed 1 million users. In September 202210,000 people, the first to sign upfor early access to the iOS app, were able to test the beta version.
By contrast, monthly active users stood at 11.4 million (down 0.8 million in the quarter), and the total number of funded accounts was 23 million.
Ahead of the company’s IPO in July 2021, co-founder and CEO Vlad Tenev described digital assetsthe foundation of Robinhood’s future development.
During a conference call with analysts, CFO Jason WarniK выразил оптимизм regarding the development of the crypto-related business, noting January–February trends.
Simultaneously with the quarterly results, Robinhood announced plans to buy back 55 million shares held by Emergent Fidelity Technologies. The Sam Bankman-Fried-linked firmacquired them in May 2022.
Robinhood’s co-founders are canceling nearly $500 million in option-based compensation to reduce costs.
After the results were released, the online broker’s shares rose about 7.9%. Pre-market data indicated a potential 5% gap up at the open.
Since the start of the year, Robinhood’s stock has risen about 28.6%. Over the last year, the company’s market capitalization has fallen by nearly a quarter.
In January, the U.S. Department of Justiceseized 55.2 million Robinhood shares in thecase involving FTX founder Sam Bankman-Fried.
Earlier, FTXasked the court to protect these Robinhood securities from creditors.