Robinhood's first-quarter earnings report fell short of expectations, with the company posting adjusted earnings per share of $0.38, missing the estimated $0.39. Total revenue increased by 15% year-over-year to $1.07 billion, but failed to meet analysts' expectations of $1.14 billion, resulting in an 8% drop in shares in post-market trading. The company's crypto-related revenue, a significant contributor to its transactional income, plummeted 47% to $134 million from $252 million in the previous year. However, this decline was offset by growth in other areas, including a 320% year-over-year increase in 'other transaction revenue' to $147 million, driven by a record 8.8 billion contracts traded in prediction markets.
CEO Vlad Tenev emphasized the company's focus on utilizing crypto technology as a foundation for financial services, rather than relying on crypto price fluctuations. The results underscore Robinhood's efforts to diversify its revenue streams, including expansions into prediction markets, derivatives, and advisory tools, as it seeks to reduce its dependence on crypto trading.