Robinhood has published its financial results for Q2, 2023, with crypto trading revenue dropping noticeably. The firm also turned profitable for the first time since going public.
Robinhood has tried to make crypto a strong part of its services, but the financial results aren’t very telling. The crypto trading revenue in Q2 2023 was $31 million, which accounts for only 16% of the overall $193 million that the firm made in the second quarter.
Robinhood Crypto Trading Revenue and Volumes Drop
The $31 million it made is also an 18% decline from the previous quarter when it made $38 million in crypto trading revenue. This appears to be a continuing trend for Robinhood, which saw its crypto trading volume drop by 68% to $2.1 billion in May 2023.
The company also has $11.5 million in crypto assets in its custody. This figure remains unchanged from the first quarter results.
Other notable elements of the report are also present. One of these is that Robinhood turned profitable for the first time since it became public.
This shows that the dropping crypto revenue is not too much of a hindrance to the business, which has experienced occasional turbulence in recent years.
Robinhood Turns Profitable, Monthly Active Users Drop
However, one notable metric that may be cause for concern for investors is the fact that Robinhood’s share price has dropped, possibly because of a decline in monthly active users.
The number of monthly active users dropped to 10.8 million, 1 million lower than Q1 2023 and 3.2 million year-over-year.
Robinhood is having an eventful 2023, with many developments taking place, both inside and outside its crypto trading efforts. The company recently appointed a new CEO for its UK division ahead of a planned launch later this year.
Its UK CEO, Jordan Dane Sinclair, will help Robinhood expand its brokerage services overseas.
Amid the crackdown that US authorities are carrying out on the crypto industry, Robinhood has decided to remove certain tokens from its platform. The platform removed Solana, Cardano, and Polygon in late June 2023.
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