Robinhood’s revenue more than doubles to $565 million last quarter on huge surge in crypto trading

Robinhood’s revenue more than doubles to $565 million last quarter on huge surge in crypto trading

Robinhood's revenue more than doubled in the second quarter to $565 million, bolstered by a massive surge in crypto trading, the stock trading app said in its first earnings report as a public company on Wednesday. But the shares fell in after-hours trading after the company warned a slowdown in trading activity would hit revenues in the current quarter. Revenue surged more than 131% in the period from $244 million a year ago and was near the high range of the company's forecast of $546 million to $574 million. Revenue from crypto trading totaled $233 million, more than half of all the transaction-based revenue of $451 million for the second quarter. Cryptocurrency's share of revenue jumped to more than 51% from 17% in the first quarter. More than 60% of cumulative net funded accounts traded crypto in the quarter. In the second quarter of 2020, crypto-based revenue was just $5 million. Clients trading options contributed $165 million to transaction-based revenue last quarter, and equities were $52 million. Robinhood also earns revenue off of its gold subscription service. Assets under custody ballooned 205% to $102 billion in the second quarter of 2021, compared with $33 billion in the second quarter last