Robinhood's first-quarter earnings and revenue fell short of expectations, primarily due to a significant decline in cryptocurrency trading revenue. The company reported adjusted earnings per share of $0.38, missing the estimated $0.39, and total revenue of $1.07 billion, which was below the anticipated $1.14 billion. As a result, shares dropped approximately 8% in post-market trading. The decline in crypto-related revenue, which decreased by 47% to $134 million, 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.
The company is shifting its focus towards utilizing crypto technology as infrastructure for financial services, with CEO Vlad Tenev stating that he wants to move away from discussing bitcoin prices and instead emphasize the use of crypto technology for broader financial services. The results highlight a shift in customer usage, with more consistent engagement across asset classes. Robinhood is expanding into areas like prediction markets, derivatives, and advisory tools to reduce its dependence on crypto trading, similar to Coinbase, which is also working to diversify its revenue streams.