(Bloomberg) — Robinhood Markets Inc. posted third-quarter revenue that beat analysts’ estimates as transactions rebounded slightly.
(Bloomberg) — Robinhood Markets Inc. posted third-quarter revenue that beat analysts’ estimates as transactions rebounded slightly.
Revenue totaled $361 million, exceeding the $357.8 million average estimate of analysts surveyed by Bloomberg. Net loss was $175 million, or 20 cents a share, the Menlo Park, California-based company said Wednesday in a statement.
Shares of Robinhood rose 4% to $11.86 in extended trading at 4:46 p.m. in New York. The stock had lost 36% this year through the close of regular trading and 70% since its July 2021 initial public offering.
Because Robinhood still relies on user transactions for most of its revenue, a decline in trading activity has been bruising the business. The company pivoted in its strategy, cutting costs by slashing jobs and closing offices while introducing features geared toward the most-active users of its trading app.
Read more: Robinhood Slashes 23% of Its Workforce in Sweeping Overhaul
Despite those efforts, customer enthusiasm is waning. Monthly active users fell to 12.2 million at the end of September, an 8% slide from the previous month.
The latest quarter “continued to be a difficult trading environment for customers, but we’re encouraged to see customers continuing to contribute billions of dollars to their accounts,” Chief Financial Officer Jason Warnick said in a conference call with journalists.
Robinhood’s third-quarter transaction revenue totaled $208 million, fueled by increases in options and equities trading compared with the previous three-month period. Cryptocurrency transaction revenue, however, slid 12% from the second quarter.
(Updates with monthly active users in fifth paragraph, CFO comment in sixth.)
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