Robinhood's first-quarter earnings fell short of expectations, with the company reporting adjusted earnings per share of $0.38, missing the estimated $0.39. The trading platform's total revenue rose 15% year-over-year to $1.07 billion, but failed to meet analysts' expectations of $1.14 billion, resulting in an 8% drop in shares during post-market trading. The significant decline in cryptocurrency-related revenue, which dropped 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 cryptocurrency technology as infrastructure for financial services, rather than relying on crypto price cycles.
The results highlight a shift in customer engagement, with users demonstrating more consistent activity across various asset classes. Robinhood is expanding its offerings to include areas such as prediction markets, derivatives, and advisory tools, aiming to reduce its dependence on cryptocurrency trading.
The company also reported gains in net interest revenue and subscriptions, including its Gold tier, as it develops a more comprehensive financial services platform.