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Robinhood posts 55% slump in revenue, monthly user declined almost one-third
By Arghyadeep Dutta - Aug 02, 2022, 11:02 PM ET
Last Updated - Mar 12, 2024, 02:37 PM EDT
Robinhood Markets Inc (NASDAQ: HOOD) on Tuesday said its revenue dipped 55% in the second quarter on slumping trading activity, with monthly active users also falling by roughly a third
Robinhood Markets Inc (NASDAQ: HOOD) on Tuesday said its revenue dipped 55% in the second quarter on slumping trading activity, with monthly active users also falling by roughly a third.
The California-based brokerage posted net revenue of $318 million for the quarter ended June 30, compared with $565 million a year earlier.
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The company said it would commence another round of layoffs affecting 780 employees and will change its organizational structure to drive greater cost discipline, which will cost the firm between $30 million to $40 million.
Robinhood laid off 9% of its workforce in April.
The brokerage posted a net loss of $295 million. Excluding all the restructuring charges, Robinhood reported a loss of 32 cents per share, while Wall Street analysts estimated a loss of 37 cents per share.
Robinhood's total operating expenses for the second quarter rose 22% from the same period last year.
Monthly active users also declined to 14 million for June 2022 compared with 21.3 million a year earlier, as its customer base has been startled by decades-high inflation and rising interest rates, which have sucked liquidity out of global markets and sent cryptocurrencies slumping.
Transaction-based revenues across Robinhood's three main business lines of options, equities and cryptocurrencies fell 55%, with crypto transaction revenue slumping 75% year-on-year.
Picture Credit: Barron's
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