• Robinhood’s Q3 crypto trading volumes reached $14.4 billion, more than double from last year
• Crypto trading volume declined from $21.5 billion in Q2 and $36 billion in Q1 2022
• Robinhood reported quarterly revenue of $637 million, missing estimates of $650.67 million
Robinhood, the commission-free brokerage app, reported its third-quarter earnings on Wednesday, showing continued strong demand for crypto trading among retail investors, although volumes have declined from earlier highs this year.
Crypto Trading Volumes
Crypto trading volumes on Robinhood grew 112% year-over-year to reach $14.4 billion in Q3. However, this was down significantly from $21.5 billion in trading volume in Q2 2022 and $36 billion in Q1.
Revenue from Crypto Trading
Robinhood’s transaction-based revenues increased 72% versus last year to $319 million. Cryptocurrency trading generated $61 million, up 165% from a year ago. Despite the growth, crypto revenue fell from $81 million last quarter.
Other Trading Revenue Sources
Options trading revenue hit $202 million, up 63%, while equities trading brought in $37 million, up 37%.
Total Assets Under Custody
Robinhood’s Assets Under Custody (AUC) grew 76% year-over-year to $15.2 billion, driven by ongoing net deposits and increased valuations of stocks and cryptocurrencies.
Q3 Financial Results
Robinhood reported Q3 earnings per share of $0.17, reversing last year’s loss of $0.09 per share. Quarterly revenue was $637 million, slightly under the expected $650.67 million.
Management Comments
“Q3 was another strong quarter as we drove 36% year-over-year revenue growth and dropped most of that to the bottom line,” said CFO Jason Warnick. “We entered 2023 with the goal of delivering another year of profitable growth, so we’re excited to have already broken prior full year records for both revenue and EPS.”
Recent Developments
Earlier in October, Robinhood confirmed it will start offering bitcoin and ether futures products as it continues expanding advanced trading options. The company also introduced event contracts this week, allowing users to bet on outcomes like the U.S. presidential election.
