Robinhood’s transaction-based revenue derived from cryptocurrencies dropped 18 percent in the second quarter due in part to fewer customers placing trades, according to the firm’s latest earnings report.
Revenue related to crypto activities fell to $31 million, down from $38 million in the previous quarter, according to the California-based company. A supplemental report show that the number of customers placing trades fell 6%, while notional volumes per trader declined 15%.
Robinhood said it's continuing to build in the industry, citing its plans to introduce a non-custodial wallet later this year, which will allow customers to have control over their crypto.
“Despite the challenging environment for the whole crypto ecosystem, Robinhood has continued to build in this space,” the firm said on Wednesday.
Robinhood reported in June that crypto trading volume had dropped 43 percent in May compared to April. May's trading volume was 68% lower than in the same month last year, Robinhood said in a previous statement.
Robinhood net income
Robinhood’s total net revenues increased to $486 million, up 10 percent from the first quarter of this year.
The firm also said it “achieved GAAP profitability for the first time” as a public company given that net income rose to $25 million in the second quarter.
“In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company,” said Vlad Tenev, CEO and co-Founder of Robinhood Markets. “Guided by our bold product roadmap we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better."
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