Robinhood's growth in the summer slowed as trading calmed

The meteoric maturation of Robinhood Markets is coming backmost to earth, overmuch similar its banal price.

The institution whose easy-to-use app has brought caller generations of investors into the banal and cryptocurrency markets said Tuesday that its revenue growth slowed to 35% successful the July-September quarter, down from 131% successful the outpouring and 309% astatine the commencement of the year.

The slowdown came arsenic Robinhood's customers traded little often than earlier successful the year, peculiarly successful cryptocurrencies, and arsenic the institution entered a traditionally slower portion of the calendar for brokerages. Robinhood besides had somewhat less funded accounts than it did during the spring, with the full dipping to 22.4 cardinal from 22.5 million.

Robinhood's nonaccomplishment for the 4th totaled $1.32 billion, oregon $2.06 per share, compared with a nonaccomplishment of $10.7 million, oregon 5 cents per share, a twelvemonth earlier. A shadiness much than $1 cardinal of the nonaccomplishment was related to stock-based compensation expenses it recognized with its archetypal nationalist offering of stock. Revenue roseate to $364.9 cardinal from $269.5 million.

Robinhood's concern does champion erstwhile markets are volatile and its customers are making tons of trades. But the 3rd 4th didn't diagnostic a marketplace frenzy similar the second quarter's surge for dogecoin and different cryptocurrencies oregon the archetypal quarter's "meme stock" craze.

That meant Robinhood made an mean of $65 successful gross from each of its users. That's down from $112 3 months earlier and from $102 a twelvemonth earlier. In crypto trading alone, Robinhood's transaction-related gross fell to $51 cardinal from $233 cardinal successful the spring, though that was inactive up sharply from $5 cardinal a twelvemonth earlier.

Looking ahead, Robinhood said little trading enactment among its customers could persist. That's wherefore it said gross could apical retired astatine $325 cardinal for the past 3 months of the year. That would people a 2nd consecutive 4th wherever revenue weakened from the anterior 3 months.

In the meantime, Robinhood has been making investments successful caller products and further customer-service. That tin clasp and bring successful caller customers, though it tin adhd to expenses. Robinhood's full operating costs were up from year-ago levels, but they were down from the 2nd 4th aft excluding share-based compensation.

The institution precocious announced that it's offering unrecorded telephone enactment 24 hours a day, pursuing earlier critcisms astir however hard it was to scope the company. CEO Vlad Tenev besides said that much than 1 cardinal radical person joined the waitlist for Robinhood's crypto wallet.

Robinhood's stock has besides travel down aft its ain volatile ride. After a rocky Wall Street debut successful July, it soared arsenic precocious arsenic $85 successful August earlier pulling back. Before Robinhood released its third-quarter results connected Tuesday, its shares closed astatine $39.57, up 1.4%. The shares went nationalist successful July astatine a terms of $38.

Shares fell 8.4% successful afterhours trading pursuing the merchandise of its results.

---

---

© 2021 The Associated Press. All rights reserved. This worldly whitethorn not beryllium published, broadcast, rewritten oregon redistributed without permission.