Robinhood Markets (Nasdaq: HOOD) witnessed another month of slow demand. The number of funded accounts stayed flat in May, while the active users base fell month over month (MoM) from 11.5 to 10.6 million. However, volumes, excluding digital assets, recorded an increase of nearly 30% on a monthly basis.

Robinhood Reports Lower Engagement and Mixed Trading Volumes

In May 2023, the Net Cumulative Funded Accounts (NCFA) reached 23.1 million, marking an increase of around 20,000 compared to April 2023. Although the number of customers engaging in trades rose year over year (YoY), the Monthly Active Users (MAU) declined 8%, showing a decrease of approximately 900,000 from April 2023. Compared to the same period in 2022, MAU fell even stronger, decreasing 28% from 14.6 million active users.

Regarding trading volumes, the crypto market experienced the most significant declines. Total trading volumes fell 43% MoM from $3.7 billion in April to $2.1 billion in May and 68% YoY from $6.6 billion. However, the equity and options contracts trading achieved visible growth. Robinhood's equities turnover reached $49.4 billion, rising 27% from $38.9 which was reported a month earlier.

In addition, the total value of Assets Under Custody (AUC) reached $81.8 billion, reflecting a MoM increase of 6%. In May, Net Deposits amounted to $1.6 billion, indicating an annual growth rate of 25% relative to the AUC in April 2023. Over the past twelve months, Net Deposits amounted to $16.5 billion, corresponding to a yearly growth rate of 22% relative to the AUC in May 2022.

Cryptocurrencies also fell in terms of Daily Average Revenue Trades (DARTs), contracting 22% MoM and 53% YoY. While DARTs grew modestly for stocks and options on a monthly basis, they fell 7% and 1%, respectively, on a YoY basis.

Robinhood Reviews Crypto Offering

A month ago, Robinhood published a financial report for the first quarter of 2023, showing a net loss despite growing revenues. During Q4 2022, Robinhood's total net income stood at $380 million, with a net loss of $166 million. Compared to Q1 2022, the revenue surged 47% from $299 million. On the contrary, the net loss plunged 30% from $392 million in the prior period.

Although the overall revenues grew, revenues from cryptocurrencies shrank ever so slightly by 1% to $38 million. This is an effect of last year's cryptocurrency winter and the regulatory problems that cryptocurrencies are facing in the US.

Last week, Robinhood announced that it is reviewing its crypto offering, being cautious after the US securities regulator's recent lawsuits against Binance and Coinbase. A few days later, the company announced it is delisting some of the popular altcoins that were recently identified as securities by the SEC: Cardano (ADA), Solana (SOL) and Polygon (MATIC).

According to the company, users can continue to buy, sell, hold, or transfer ADA, MATIC, and SOL until 27 June.