Robinhood’s Q3 crypto revenue surges 300% as earnings beat forecasts

Trading platform Robinhood Markets saw its third-quarter crypto revenue surge 300% from a year ago, helping to boost its quarterly earnings above Wall Street expectations.

Robinhood announced on Wednesday that its Q3 transaction-based revenues increased 129% from the same period last year to $730 million, attributing the gain to its $268 million in crypto revenues, which rose more than 300% from the previous year.

The company’s total revenues for the quarter ended Sept. 30 doubled year-over-year to $1.27 billion, beating analyst expectations of $1.2 billion. Its earnings per share increased 259% to 61 cents, outpacing analyst estimates of 51 cents per share.

Robinhood has traditionally been known for its stock trading platform but has been pushing to capture retail and institutional crypto users, having completed an acquisition of Bitstamp in June, along with offering tokenized stocks and prediction markets.

Robinhood finance chief Jason Warnick said its Bitstamp and prediction markets businesses “are generating approximately $100 million or more in annualized revenues.”

Shares in Robinhood (HOOD) ended trading on Wednesday up 4.15% at $142.48, but fell by over 2% after the bell to under $140.

Shares in Robinhood gained over the trading day on Wednesday but fell after hours. Source: Google Finance

The company’s stock has gained over 280% so far this year and closed at an all-time peak of $152.46 on Oct. 9 before a major crypto market crash dampened further gains.

CEO talks prediction markets, tokenized stocks

Robinhood CEO Vladimir Tenev told investors at an earnings conference that the company has “some options” to boost the global availability of its prediction market offering.

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“As a scaled traditional player, but also on the crypto side, I think we’ll have our pick of what’s best in each jurisdiction,” he said. “That’s something we’re definitely closely looking at.”

Vladimir Tenev speaks to investors at an earnings conference on Wednesday. Source: YouTube

Tenev said that his company’s tokenized stock offerings “are not as interoperable as we would like, but that’s just because they’re actually not on DeFi yet.”

“Over time, I do expect greater interoperability,” he added. “As you’ve seen with other assets in the crypto world, even if they’re on other chains, the community tends to get involved and build bridges and wrappers, and so I think that that’s less of a concern.”

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