Robinhood's first-quarter earnings report fell short of expectations, with the company posting adjusted earnings per share of $0.38, below the estimated $0.39, and total revenue of $1.07 billion, missing the projected $1.14 billion. The stock price subsequently dropped 8% in post-market trading.
A notable decline in crypto-related revenue, which decreased by 47% to $134 million, was a major contributor to the missed targets. However, the company saw 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. CEO Vlad Tenev emphasized the company's focus on utilizing crypto technology as infrastructure for financial services, rather than relying on crypto price cycles. The results underscore Robinhood's efforts to diversify its revenue streams, including expanding into areas like prediction markets, derivatives, and advisory tools, to reduce its dependence on crypto trading.