Robinhood's first-quarter earnings report fell short of expectations, with the company missing its earnings and revenue targets due to a sharp decline in cryptocurrency trading revenue. However, growth in other areas of the business helped drive 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, and its total revenue of $1.07 billion fell short of the expected $1.14 billion.
As a result, the company's shares dropped approximately 8% in post-market trading. The decline in cryptocurrency-related revenue, which decreased by 47% to $134 million, was offset by stronger activity in other areas, including a 320% year-over-year increase in 'other transaction revenue' to $147 million, driven by record-breaking growth in prediction market bets.
CEO Vlad Tenev emphasized the company's focus on utilizing cryptocurrency technology as 'infrastructure' for financial services, rather than relying on crypto price cycles. The company's expansion into areas such as prediction markets, derivatives, and advisory tools aims to reduce its dependence on cryptocurrency trading and create a more stable revenue stream.