Nasdaq-listed stock and digital currencies trading platform, Robinhood Markets Inc are amongst the worst losers on Wall Street in the Pre-Market after the company reported disappointing earnings across the top and bottom lines.
The firm reported a 43% decline in its revenue which got pegged at $299 million. This figure is in comparison to the $522 million recorded in the first quarter of 2021, showing how well Robinhood has started losing market share in the face of very stiff competition. The share slumped to $9.08, after a 10.01% loss in the Pre-Market.
This loss was further complemented by the company’s crypto transactions figures which slumped from $88 million in the first quarter of 2021 to $54 million, down 39% Year-Over-Year.
“We’re seeing our customers affected by the macroeconomic environment, which is reflected in our results this quarter,” said Jason Warnick, Chief Financial Officer of Robinhood Markets. “At the same time, we’ve also made progress on our long-term plans and continue to pursue them aggressively.”
Robinhood Expects Revenue Bounceback With Outlined Growth Tracks
While the performance of Robinhood is very bearish, Robinhood is hopeful its planned product rollouts especially the functional crypto wallet service and its Ziglu acquisition will aid its future revenue bounceback.
“This quarter saw our product development engine gain velocity with the rollout of some of our most requested features and capabilities,” said Vlad Tenev, CEO and Co-Founder of Robinhood Markets. “With the introduction of the Robinhood Cash Card, the release of crypto wallets to all customers, the addition of new coins to our platform, and our agreement to acquire Ziglu Limited, we’ve made huge strides against our roadmap. Looking ahead, we have a suite of new products and services slated for release that we believe will excite and delight our customers.”
Robinhood has enjoyed great days, especially with the boost that its crypto integration afforded it back in the previous quarters. However, with the incessant drop in the share price of the company’s stock, investors may lose confidence especially if its many product and service offerings do not yield the expected turnover in the next couple of months.