Robinhood shares slid after the brokerage reported fourth-quarter revenue of $1.28 billion, missing Wall Street expectations as weakness in crypto markets weighed on trading activity.
The company’s revenue rose 27% from a year earlier but fell short of analysts’ $1.35 billion forecast, while net income dropped 33% year-on-year to $605 million, narrowly missing earnings estimates.
“Our vision hasn’t changed: we are building the financial superapp,”
Said Robinhood chief executive, Vlad Tenev, as the results snapped a streak of earnings beats during a broader crypto downturn.
Revenue from crypto transactions slipped sequentially to $221 million from $268 million in the prior quarter, reflecting lower digital asset prices and marking a 38% decline from the same period last year.
Prediction markets continued to stand out as a growth area despite softer crypto activity, and following the announcement the Robinhood share price was down at about $80.
The slowdown came as Bitcoin fell 23% in the three months through December, dampening trading volumes that had previously driven Robinhood’s transaction-based income higher.
Robinhood has sought to diversify beyond crypto by expanding prediction markets and developing its Ethereum-based Robinhood Chain, which supports stock tokens for European customers seeking synthetic exposure to US equities.