American trading firm Robinhood Markets Inc. saw its bottom line fall to a net loss in the second quarter, with the company expecting more seasonal headwinds to come in the third quarter.
- Net loss stood at 4502 million, a reversal of the net income of $58 million the same quarter last year. Net loss per diluted share was at $2.16 versus the earnings of $0.09 per diluted share in 2020.
- Total net revenues climbed 131% to $565 million, as assets under custody jumped 205% to $102 billion. Transaction-based revenues gained 141% to $451 million, led by the growth in crypto transactions, followed by options and equities.
- Cryptocurrencies accounted for over 60% of net cumulative funded accounts during the quarter. This is the first quarter where a larger share of new customers invested in crypto rather than equities.
- Robinhood expects the third quarter to come with seasonal headwinds and lower trading activity, resulting in likely lower revenues and fewer new funded accounts than in the previous quarter.
Chief Executive Vlad Tenev attributed the top-line growth to higher access to crypto trading and IPO Access. HOOD is down 8.80%.