Robinhood drops after reporting the third quarter earnings

Jared Blikre talked about the earnings report from Robinhood. According to his analyses, the stock was off around 7% to 8%. The third quarter marked a big revenue miss, coming in at $364.8 million while The Street was looking for $423.8 million. Third-quarter crypto revenue moved down. It was at $52 million, and the loss per share was $2.07. 

He went through all the other estimations for the third quarter. He commented that he believes that is a sequential decline. Third-quarter transaction-based revenue was at $266.7 million, while the assets under custody in the same quarter were $95 billion.

He also talked about the outlook for the fourth quarter, which, as he said, seemed as another disappointment. They see the fourth quarter with revenue less than $325 million and the year revenue less than $1.8 billion. And they are expecting new funded accounts in the fourth quarter to be around 660,000.

Overview

Later, he made a couple of notes from the report. He said that Robinhood made available the waitlist for crypto wallets, which, in his opinion, is the company’s one of the most massively requested products. Over one million clients have already signed up.

Finally, Robinhood managed to launch its 24/7 live phone support in the app, enabling customers to get phone support on any topic and at any time. So far, Robinhood is considered the first major crypto platform that can provide 24/7 support through its platform. Besides this good news, the platform went down again (that happens to all of them from time to time). So, all in all, it marked a pretty significant revenue miss—also, the outlook for revenue in the fourth quarter in the whole year was short of expectations. It is also visible how the stock suffered in after-hours trading.