Robinhood (HOOD) shares fell nearly 13% to $10.12 after the platform reported a decline in crypto revenue and that overall Q4 revenue was lower than analysts had expected.
Cryptocurrency transaction revenue was $48 million, down compared to the $51 million achieved in the third quarter. and a record $233 million in the second quarter. However, $48 million in crypto trading revenue was a 304% increase from last year’s fourth quarter. Meanwhile, fourth-quarter stock trading revenue fell 35 percent year-over-year to $52 million.
the company said “It has set a proactive goal” to start opening crypto platforms to international clients this year. which is seen as “Big Opportunity”
Robinhood recently launched a public beta of Crypto Wallets and plans to launch it in full before the end of the first quarter of this year. It is also launching Crypto Gifts during the holidays to allow users to send crypto to family and friends.
Fourth-quarter total revenue was $363 million, below analysts’ estimate of $376.3 million, according to FactSet. Adjusted net loss was $0.49 per share, compared with $0.36 per share at FactSet. analysts forecast
Robinhood executives were asked about plans to add new crypto coins to the platform, including Shibu Inu (SHIB), in which CEO Vlad Tenev said the company was “actively engaging with regulators” to address concerns about cryptocurrencies. Listing of unregistered securities “We are very determined. We want to avoid registration requirements with the SEC for cryptocurrencies.”
When asked about plans to offer crypto staking and a marketplace for NFT tokens, Robinhood executives said the company is building a crypto team and looking at regulatory guidelines. But there are no specific details on future plans.
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