Robinhood's first-quarter earnings report fell short of expectations, with the company reporting adjusted earnings per share of $0.38, below the estimated $0.39. The trading platform's total revenue rose 15% year-over-year to $1.07 billion but missed analysts' projections of $1.14 billion.
As a result, shares dropped approximately 8% in post-market trading. A notable decline in cryptocurrency-related revenue, which decreased by 47% to $134 million, was offset by growth in other areas, including a 320% increase in 'other transaction revenue' driven by event contracts. The company's CEO, Vlad Tenev, emphasized the shift towards utilizing cryptocurrency technology as infrastructure for financial services, rather than focusing on crypto price cycles.
The report highlights Robinhood's efforts to diversify its revenue streams, including expansions into prediction markets, derivatives, and advisory tools, in an attempt to reduce its dependence on cryptocurrency trading.