The broker is currently offering crypto trading only in the US.
It reported a net loss of $85 million in Q3.
Robinhood (Nasdaq: HOOD) plans to launch brokerage operations in the United Kingdom and crypto trading operations in the European Union, the American broker revealed as it released its financials for the third quarter of 2023. Currently, its crypto brokerage services are only available in the United States.
Robinhood's Ambitions for Europe
While the broker is planning for expansion, its transaction-based revenue, between July and September, decreased 11 percent year-over-year to $185 million. The revenue from options remains unchanged at $124 million; however, revenue from equities and cryptocurrencies dropped 13 percent and 55 percent, respectively. From cryptocurrencies, the broker only generated $23 million. In the previous quarter, cryptocurrencies brought $31 million in revenue, a downtick of 26 percent.
"Looking ahead, we remain focused on providing industry-leading products that serve far more of customers' financial needs, gaining market share, expanding internationally, and continuing to change the industry for the better," said Vlad Tenev, the CEO and Co-Founder of Robinhood Markets.
Meanwhile, the total net revenue of the broker came in at $467 million, an increase of 29 percent year-over-year but declined 4 percent quarter-over-quarter. The yearly push was due to "higher net interest and other revenues, partially offset by lower transaction-based revenues."
Indeed, the net interest revenue of the exchange rocketed 96 percent year-over-year to $251 million.
The broker managed to reduce its operating expenses by 1 percent to $580 million. It ended the quarter with a net loss of $85 million, narrowing down from a loss of $175 million in Q3 2022. However, the broker turned a profit of $25 million in the second quarter of the ongoing year.
Reaction of the Market
Although the American broker posted its financials post-market, its investors reacted strongly in the after-hours trading. Shares of the company closed Tuesday, gaining 1.7 percent; however, it slipped 8.3 percent in after-hours trading, affected by the results.
User Metrics
The official results published by the California-headquartered broker revealed that the number of its net cumulative funded accounts elevated 360,000 year-on-year to reach 23.3 million.
The overall assets under custody on the brokerage platform saw a yearly escalation of 34 percent to $87 billion. While at $10.2 billion, crypto assets held on behalf of customers improved about 9 percent year-over-year, it declined 11 percent quarter-over-quarter.
"With growing market share of retail trading and increased customer adoption… we're excited to see momentum building," said Jason Warnick, Chief Financial Officer of Robinhood Markets. "As we continue to grow revenues and stay lean on expenses, we're focused on delivering strong operating leverage over time to drive shareholder value."
Robinhood (Nasdaq: HOOD) plans to launch brokerage operations in the United Kingdom and crypto trading operations in the European Union, the American broker revealed as it released its financials for the third quarter of 2023. Currently, its crypto brokerage services are only available in the United States.
Robinhood's Ambitions for Europe
While the broker is planning for expansion, its transaction-based revenue, between July and September, decreased 11 percent year-over-year to $185 million. The revenue from options remains unchanged at $124 million; however, revenue from equities and cryptocurrencies dropped 13 percent and 55 percent, respectively. From cryptocurrencies, the broker only generated $23 million. In the previous quarter, cryptocurrencies brought $31 million in revenue, a downtick of 26 percent.
"Looking ahead, we remain focused on providing industry-leading products that serve far more of customers' financial needs, gaining market share, expanding internationally, and continuing to change the industry for the better," said Vlad Tenev, the CEO and Co-Founder of Robinhood Markets.
Meanwhile, the total net revenue of the broker came in at $467 million, an increase of 29 percent year-over-year but declined 4 percent quarter-over-quarter. The yearly push was due to "higher net interest and other revenues, partially offset by lower transaction-based revenues."
Indeed, the net interest revenue of the exchange rocketed 96 percent year-over-year to $251 million.
The broker managed to reduce its operating expenses by 1 percent to $580 million. It ended the quarter with a net loss of $85 million, narrowing down from a loss of $175 million in Q3 2022. However, the broker turned a profit of $25 million in the second quarter of the ongoing year.
Reaction of the Market
Although the American broker posted its financials post-market, its investors reacted strongly in the after-hours trading. Shares of the company closed Tuesday, gaining 1.7 percent; however, it slipped 8.3 percent in after-hours trading, affected by the results.
User Metrics
The official results published by the California-headquartered broker revealed that the number of its net cumulative funded accounts elevated 360,000 year-on-year to reach 23.3 million.
The overall assets under custody on the brokerage platform saw a yearly escalation of 34 percent to $87 billion. While at $10.2 billion, crypto assets held on behalf of customers improved about 9 percent year-over-year, it declined 11 percent quarter-over-quarter.
"With growing market share of retail trading and increased customer adoption… we're excited to see momentum building," said Jason Warnick, Chief Financial Officer of Robinhood Markets. "As we continue to grow revenues and stay lean on expenses, we're focused on delivering strong operating leverage over time to drive shareholder value."
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
Capital.com Hits $1.2 Trillion in Client Trading Volumes, Sees 53% Surge
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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