- Robinhood shares fell 9.4% after-hours on Tuesday as the platform’s Q1 earnings missed analyst forecasts.
- Crypto transaction revenue and trading volume both plunged nearly 50% year-on-year.
- The platform’s new Robinhood Predictions market saw explosive growth, helping offset crypto-related declines.
- CEO Vladimir Tenev said the company is investing in crypto infrastructure for what he calls a “tokenization supercycle.”
Online trading platform Robinhood saw its shares tumble in extended trading Tuesday after announcing a first-quarter earnings report that missed key analyst targets. The company’s crypto-related business metrics suffered severe declines according to the official report. Crypto transaction revenue dropped 47% to $134 million, while trading volume fell 48% to $24 billion compared to the same period a year ago.
Consequently, the disappointing earnings per share and total revenue contributed to a 9.4% drop in Robinhood (HOOD) stock. However, the company still posted a net income of $346 million, which represented a 3% yearly increase. CEO Vladimir Tenev attributed the crypto slump to market volatility but emphasized a long-term infrastructure focus.
He stated, “We’re at the very beginning of what’s gonna be a tokenization supercycle.” Meanwhile, other areas of the business showed remarkable strength. The Robinhood Predictions market saw 8.8 billion event contracts traded in Q1, a 780% jump from its first full quarter.
Tenev added the predictions platform is on track for roughly $3 billion in volume for April. Revenue from this category surged 320% year-on-year to $147 million. Activity from the acquired Bitstamp exchange, not included in the crypto figures, recorded $42 billion in quarterly volume.
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