Robinhood Q3 Earnings Takeaways: Stock Falls On Revenue Miss, Weak Guidance, Crypto Transaction Revenue Up 860%

Shares of Robinhood Markets Inc HOOD are trading lower after reporting third-quarter financial results.

What Happened: Robinhood reported third-quarter revenue of $365 million, up 35% year-over-year but shy of analysts’ estimates of $431.3 million.

The company reported a loss of $2.06 per share, missing the Street consensus estimate of a loss of $1.36 per share.

Transaction-based revenue was up 32% year-over-year to $267 million in the third quarter. The company reported cryptocurrency revenue of $51 million, up 860% year-over-year. Equities transaction revenue fell 27% to $50 million.

Monthly active users came in at 18.9 million, up 76% year-over-year.

Robinhood ended the third quarter with 22.4 million funded accounts, up 97% year-over-year. The company recognized an average revenue per user of $65, down 36% year-over-year.

The company noted “crypto activity declined from record highs in the prior quarter.” This led to fewer new funded accounts and lower revenue compared to the second quarter.

Related Link: Robinhood Adds Phone Support: Here's The Details And Why It's Important

What’s Next: Robinhood highlighted several upcoming product launches in its third-quarter financial report.

“This quarter was about developing more products and services for our customers, including crypto wallets,” said Robinhood CEO and co-founder Vlad Tenev. The company has over one million people on its crypto wallets waitlist.

“We believe Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors.”

The company said it's committed to launching tax-advantaged retirement accounts in the future.

Robinhood is guiding for fourth-quarter revenue of $325 million and full-year revenue of “less than $1.8 billion.”

New funded accounts in the fourth quarter are expected to be around 660,000, similar to the third quarter.

HOOFD Price Action: Shares are down 8.2% to $36.30 in after-hours trading.

Posted In: crypto walletsRobinhoodVlad TenevCryptocurrencyEarningsNewsGuidanceAfter-Hours CenterMarketsMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.