Robinhood's first-quarter earnings fell short of expectations, with the company reporting a significant decline in crypto trading revenue. However, growth in other areas helped push overall revenue up 15% to $1.07 billion. The company's adjusted earnings per share of $0.38 missed Wall Street's estimate of $0.39. Shares dropped about 8% in post-market trading following the report.
Crypto-related revenue plummeted 47% to $134 million, while transaction-based revenue rose to $623 million, driven by growth in newer products. The company saw a record 8.8 billion contracts traded in prediction markets, resulting in a 320% year-over-year increase in 'other transaction revenue' to $147 million. Robinhood is shifting its focus towards using crypto technology as infrastructure for financial services, with CEO Vlad Tenev stating that the company is at the beginning of a 'tokenization super cycle.' The company also reported gains in net interest revenue and subscriptions as it expands its financial services platform.