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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.
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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