Robinhood's first-quarter earnings report fell short of expectations, with the company reporting a significant decline in crypto trading revenue. The platform's adjusted earnings per share were $0.38, missing the estimated $0.39, while total revenue rose 15% year-over-year to $1.07 billion, but failed to meet the expected $1.14 billion. As a result, shares dropped approximately 8% 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 record-breaking activity 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 report highlights Robinhood's efforts to diversify its revenue streams and reduce its dependence on crypto trading, with gains in net interest revenue, subscriptions, and transaction-based revenue. Tenev also expressed his optimism about the long-term potential of crypto, citing the beginning of a 'tokenization super cycle' and the company's plans to bring assets like stocks onto blockchain rails.