November 17, 2021
Markets

Robinhood disappoints in first earnings report since market debut

The company reported revenue of $565 million in the quarter. Analysts were expecting sales of $521.8 million. Robinhood said this was the first time more new customers made their first trade in cryptos, such as bitcoin and ethereum, instead of stocks.

Executives noted on a conference call that more than 60% of the cryptocurrency trading volume in the second quarter was in dogecoin, the meme currency that has gotten a boost thanks to tweets by Tesla and SpaceX CEO Elon Musk.

Robinhood added that its base of monthly active users more than doubled to 21.3 million in the second quarter of 2021, compared with 10.2 million a year ago.

But the trading platform also reported a net loss of $502 million, or $2.16 per share. That was much bigger than Wall Street’s forecasts. A big chunk of the loss was largely an accounting issue however, due to a change in fair value for convertible notes and…

Read full article here: www.cnn.com