On Wednesday, the online broker -Robinhood rose to the analysts’ expectations when it achieved strong financial data for the second quarter. It reported a sales increase of sales by 7% to $ 989 million, which exceeded the fact set consensus of almost $ 915 million. And a profit reported per share of 42 cents, a beat of the consensus of the analysts of 31 cents.
Dan Dolev, a senior analyst at Mazuho Securities, said the fintech “Hulk Smashe (D)” after Robinhood had recorded its quarterly results.
The online brokerage that users can use to trade stocks and digital assets such as digital assets Bitcoin And EthereumDiscovered Gaudy results despite a decline in the crypto transaction turnover, which dropped 36% to $ 160 million in the previous quarter.
In the past, Robinhood’s quarterly assets were closely linked to booms and busts in the activities of retail dealers in the markets. During the crypto enthusiasm from early 2021, the income from crypto transactions made up for 41% of the company’s topline. In the middle of the latest so-called crypto winter, this percentage dropped to 5%in the third quarter of 2023.
When Robinhood drove the heights and depths of the stock and crypto trading cycle, the company began to build its business in order not to rely on the moods of retail dealers. It expanded its subscription business and started its own Credit cardAnd let users act with margin or take out loans to buy and sell more shares. It pressed too to the banking business During work, expanding its business in Europe and Great Britain
“When we went to the stock exchange in 2021, it felt like we were much more fragile than today,” said Robinhood CEO Vlad Tenev during the win on Wednesday.
While the cash generated from transactions still comprised most of the company’s sales in the second quarter, almost 30% of the topline came from parts of his business that produce interest. This includes the money that takes users who take trading and the interest for the money credit of the users.
And almost 10% of its sales in the second quarter came from Robinhood Gold, his subscription business, in which users receive a monthly fee and services such as returns for their cash reserves for the app.
“If you look at things that we expect at short notice, in the medium term and long -term, it is quite full,” said Tenev. “So that’s probably the least diversified that you should ever see Robinhood.”
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