Robinhood Markets Inc.
fell in the third quarter from the previous quarter, weighed down by a sharp decline in customers’ cryptocurrency activity.
The popular trading app recorded revenue of $365 million, a 35% drop versus $565 million during the prior quarter. On a year-over-year basis, revenue climbed 35% from $270 million in the third quarter of 2020.
Robinhood recorded a net loss of $1.3 billion for the quarter, or $2.06 per diluted share. In the previous quarter, Robinhood recorded a loss of $502 million. Shares fell about 8% in after-hours trading.
Customers with funded accounts at Robinhood fell by 100,000 to 22.4 million in the period. Meanwhile, the company reported an overall quarter-over-quarter decline in the revenue earned from routing customers’ trades to high-speed trading firms—a practice known as payment for order flow.
Fees earned from stock and options trades were slightly less than the previous quarter, while revenue tied to cryptocurrency trading tumbled 78% to $51 million, from $233 million the quarter before.
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