Robinhood Earnings: DOGE Accounts For 62% Of Platform’s Crypto Revenue

Q2 2021 turns out to be a strong quarter for Robinhood. On Wednesday, the publicly-traded company reported its earnings of $565 million, up 131% from the second quarter of 2020. Interestingly, crypto made up 50% of the total transaction-based revenue for the platform.

Robinhood noted that its customers are massively adopting crypto and 62% of its entire crypto revenue came from the meme coin Dogecoin (DOGE).

Crypto Revenue Tops $233m

Recently, when the company went public, experts speculated the HOOD stock to be nothing but an ‘online gamble’ and warned the investors to be very careful while trading it. However, the company is successful in proving the speculations wrong by reason of the stronger than expected earnings report in its very first quarter as a publicly traded outfit.

 

Robinhood noted that the highly volatile crypto sector played a crucial role in raising the total revenue for the platform as its customers largely adopted digital assets over the last year. While the crypto revenue was limited to $5 million in Q2 2020, it increased to $233 million in Q2 2021 up by nearly 500%. 

In addition to this, transaction-based revenue increased to $451 million, compared with $187 million in Q2 2020. Options also grew 48% to $165 million compared with $111 million Q2 2020. However, amidst all the positives, equity transaction-based revenue fell 26% this quarter to $52 million, compared to $71 million in the second quarter of 2020.

Although there is no clear information provided by the company for next quarter, Robinhood Chief Financial Officer Jason Warnick has hinted that fall might not be very profitable as compared to the winter or the summer months. “Investors may presume lower trading volumes and earnings for Q3 2021,” he said.

Robinhood IPO overview 

Robinhood IPO was one of the most eagerly awaited initial public offering of the year. However, the buzz crashed its stock price soon after it’s market arrival.

The company priced its IPO at $38 per share and opened near that level. While the stock price was anticipated to go up, it dropped by 11% to $34 in the early trading hours itself, which was at the lower end of its IPO range. Experts speculated this debut as the worst debut ever. They said the company is built on ‘fake growth assumptions’ and that the startup mentality of Stanford roommates is barely in the rearview mirror.

At the time of writing, HOOD is trading at $45.68, down by 7% in a 24-hour time frame. The share is currently down by 50% from its all-time high of 85 set on August 4.

The post Robinhood Earnings: DOGE Accounts For 62% Of Platform’s Crypto Revenue appeared first on BitcoinLinux.

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