Stock trading app Robinhood reported that its crypto business brought in $38 million in Q1 for 2023, down 30% from $54 million in Q1 2022.
Cryptocurrency and stock trading app Robinhood reported its first quarter revenue for 2023, revealing a 29.6% year-on-year decline for its cryptocurrency trading division. In its filing, the firm also reported an increase of 26% in assets under custody which now amounts to $78 billion. Around 15%, or $12 billion, of the assets under custody, are crypto assets on its trading platform – 40% less compared to Q1 2022.
Despite declining crypto trading revenue, the trading app’s total revenue increased year-on-year, amounting to $441 million compared to Q1 2022’s revenue of $229 million. Robinhood’s total year-on-year trading revenue increased by 47.5%.
As a result of the US Federal Reserve’s recent rate hikes, Robinhood earned handsomely from interest. Q1 revenue is up 16% from Q4 2022.
Although the firm’s overall revenue increased, the app witnessed a decline in monthly active users. In Q1 2022, Robinhood had 15.9 million users, but this number decreased to 11.8 million.
Jason Warnick, Robinhood’s Chief Financial Officer, commented on the firm’s report saying:
The broader macro backdrop has been tougher on trading volumes and engagement with brokerages.
Vlad Tenev, Robinhood CEO, remained optimistic over the firm’s report:
In the face of uncertainty in the banking sector, we’re continuing to see strong net deposits and improving customer satisfaction.
Robinhood Will Soon Launch 24-Hour Weekday Stock Trading
Robinhood said it would soon allow users to engage in 24-hour trading of selected exchange-traded funds and popular stocks such as Tesla and Apple, Forbes reports. Robinhood will become the first US brokerage to offer 24-hour trading in individual stocks after it announced its plans on Wednesday.
Tenev told The Wall Street Journal (WSJ) that the 24-hour service would enable round-the-clock trading in 43 securities between 8 p.m. ET Sunday and 8 p.m. ET Friday, with plans to add more securities to this list.
The WSJ reports the service will be available in a limited capacity by next week, with all users having access by June.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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