Robinhood (HOOD) fell short of its first-quarter earnings and revenue projections, primarily due to a significant decline in crypto trading revenue. However, growth in other areas helped drive overall revenue up by 15% to $1.07 billion. The company reported adjusted earnings per share of $0.38, missing the estimated $0.39, and total revenue fell short of the expected $1.14 billion.
As a result, shares dropped approximately 8% in post-market trading. The 47% decline in crypto-related revenue to $134 million was offset by a rise in transaction-based revenue to $623 million and a 320% increase in 'other transaction revenue' to $147 million, driven by event contracts. The company's CEO, Vlad Tenev, emphasized the focus on utilizing crypto technology as infrastructure for financial services, rather than relying on crypto price cycles.
Robinhood's expansion into areas such as prediction markets, derivatives, and advisory tools aims to reduce its dependence on crypto trading. The company also experienced gains in net interest revenue and subscriptions, including its Gold tier, as it develops a more comprehensive financial services platform.