Robinhood Markets' cryptocurrency revenue jumped more than 300% in the third quarter, helping the company's total revenue double year-over-year and surpassing analysts' expectations.
Robinhood reported a 129% year-over-year increase in trading revenue in the third quarter to $730 million, with crypto bringing in $268 million — an increase of more than 300% year-over-year.
The company reported total revenue of $1.27 billion for the quarter ended September 30, beating analysts' forecasts of $1.2 billion. Earnings per share rose 259% to $0.61, significantly above the $0.51 forecast.
Though primarily known as a stock trading platform, Robinhood is expanding aggressively into the crypto space for both retail and institutional users. The company completed its acquisition of Bitstamp in June and launched Tokenize stocks and prediction markets.
CFO Jason Warnick said Bitstamp and the prediction market are currently generating “about $100 million in revenue a year.”
Robinhood (HOOD) shares ended Wednesday's session up 4.15% at $142.48, but fell more than 2% to below $140 in after-hours trading.
HOOD shares have surged more than 280% year-to-date and hit an all-time high of $152.46 on October 9 before a sharp decline in the crypto market halted the rally.
CEO talks about prediction markets and Tokenize stocks
CEO Vladimir Tenev Chia at an investor meeting that the company has “many options” to expand its prediction market operations globally.
He said:
“As a large traditional financial company with deep crypto operations, we can choose the most suitable model in each region. This is an area we are monitoring very closely.”
Regarding Tokenize stocks, Tenev admits that the product “hasn’t been as interactive as we would like, mainly because they haven’t really worked on DeFi yet.”
He added:
“In the long run, I believe interoperability will be higher. As you see in the crypto market, even though assets are on different chains, the community will still build bridges, create wrappers. So I am not too worried about this point.”
