NEW YORK: The meteoric growth of Robinhood Markets is coming back to earth, much like its stock price.
The company whose easy-to-use app has brought new generations of investors into the stock and cryptocurrency markets said Tuesday that its revenue growth slowed to 35% in the July-September quarter, down from 131% in the spring and 309% at the start of the year.
The slowdown came as the company entered a traditionally slower part of the calendar for brokerages and as its customers traded less often than earlier in the year.
Robinhood’s loss for the quarter totaled $1.32 billion, or $2.06 per share, compared with a loss of $10.7 million, or 5 cents per share, a year earlier. Revenue rose to $364.9 million from $269.5 million.
Robinhood’s business does best when markets are volatile and its customers are making lots of trades. But the third quarter didnt feature a market frenzy like the second quarters cryptocurrency surge or the first quarters meme stock craze.
That meant Robinhood made an average of $65 in revenue from each of its users. That’s down from $112 three months earlier and from $102 a year earlier.
Robinhood’s stock has also come down after its own volatile ride. After a rocky Wall Street debut in July, it soared as high as $85 in August before pulling back. Before Robinhood released its third-quarter results on Tuesday, its shares closed at $39.57, up 1.4%. The shares went public in July at a price of $38.
Shares fell 6.6% in afterhours trading following the release of its results.
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Source: News18