Robinhood’s Revenue In Q4 Dropped Compared To Q3: Analysis

Robinhood’s revenue in the fourth quarter dropped compared to the third quarter and the shares dropped by 10% as we can see more today in our latest cryptocurrency news.

The American financial services company Robinhood announced that its crypto trading revenue for the Q4 quarter of 2021 hit $48 million compared to the $51 million in Q3. 2021 has been a highly successful year for Robinhood as the company enjoyed a huge profit during the pandemic. In terms of digital asset trading, however, it started slowing down and Robinhood’s revenue in Q4 dropped compared to the one in Q3.

According to the recently presented results, the crypto revenue was $48 million in Q4, 2021, or about 6% less than the previous quarter. The company missed the $55 million Wall Street expectations and after the decline, the shares also dropped by around 10%. The crypto trading revenue in Q4 was set at 304% more than the fourth quarter in 2020 and the company noted that at the same time, the digital assets accumulated profits of $419 million for the entire of last year while in 2020 the number was set at $27 million. The crypto services which Robinhood provides surged in popularity and now the users of the platform can buy plenty of assets like BTC and ETH. A few months ago, the CEO of the platform Vlad Tenev revealed that his company is looking to offer even more options to the clients including a digital wallet:

“We’ve been doing a lot of work behind the scenes to provide our crypto customers with the functionality that they’ve been asking for. We know you want wallets.”

Robinhood introduced the product and the company’s CPO Aparna Chennapragada noted that a lot of customers are enthusiastic about getting into the new wallet as the waiting list reached two million users. The company’s crypto revenue was thriving in the second quarter of 2021 when meme coins like DOGE surged. In the second quarter, the company informed that the digital assets made up over 50% of the transaction profit while most than 60% of the users traded crypto in the same timeframe.

About 62% of the $233 million revenue came from DOGE which hit an all-time high price of $0.74. the Shiba-Inu inspired digital currency lost ground in the Q3 and Robinhood’s revenue decreased $51 million but Tenev decided not to focus on this slump as the company aimed at introducing more services:

“This quarter was about developing more products and services for our customers, including crypto wallets.”