Robinhood reports decline in revenue and active users
In its latest quarterly report, Robinhood reports a decline in revenue and active users. Monthly active users fell to 15.9 million from 17.7 million a year ago and 17.3 million in the prior quarter. Average revenue per user fell to $53 from $137 a year ago and $64 the previous quarter.
Similarly, overall net revenue fell 43% to $299 million compared to $522 million in the first quarter of 2021. According to the retail brokerage, crypto trading revenue fell 39% to $54 million, although it still outpaced the equities trading revenue of $36 million. A year ago, the figures for crypto and equities were $88 million and $133 million, respectively.
“We see our clients affected by the macro environment, which is reflected in our results this quarter,” said Jason Warnick, Chief Financial Officer of Robinhood Markets. “At the same time, we have also made progress on our long-term plans and continue to pursue them aggressively.”
To boost revenue and user growth, Robinhood has been introducing new products and features. In late March, the company stated that it has expanded its extended trading hours.
Robinhood began rolling out crypto wallets to over two million people on its waitlist in early April and recently completed its full rollout to all consumers. It agreed to buy Ziglu Ltd, a UK-based cryptocurrency platform, earlier this month.
Additionally, Robinhood recently listed four new coins: Compound, Polygon, Solana and Shiba, Inu with more to come in the future.
Will SHIB registration help you?
Shiba Inu has risen in popularity amid its jaw-dropping rally in 2021. It has quickly become one of the most valuable cryptocurrencies by market capitalization. Late last year, Shiba Inu overtook Dogecoin to become the ninth-largest cryptocurrency, before falling back to fifteenth in the CoinMarketCap rankings.
The base of very enthusiastic supporters known as the SHIB Army is a crucial strength for the meme cryptocurrency. SHIB fans initiated a petition push shortly after Robinhood listed Dogecoin on its platform, garnering over 600,000 signatures in the process.
News of Robinhood’s listing impacted the price of SHIB as it rose almost 25% as a result. Similarly, shares of Robinhood briefly spiked following the announcement.
SHIB trades at $0.000022 at press time.
