Robinhood's first-quarter earnings report revealed a significant shortfall in expected earnings and revenue, primarily due to a substantial decline in cryptocurrency trading revenue. The company's adjusted earnings per share were $0.38, falling short of Wall Street's estimate of $0.39. Total revenue rose 15% year-over-year to $1.07 billion but missed analyst expectations of $1.14 billion, prompting an 8% drop in the company's shares 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% 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 infrastructure for financial services, rather than relying on crypto price fluctuations. The results underscore Robinhood's efforts to diversify its revenue streams and reduce its dependence on cryptocurrency trading, with gains in net interest revenue, subscriptions, and newer products.