Online trading brokerage Robinhood (HOOD) reported $51 million in crypto revenue in the third quarter, down 12% from $58 million in the second quarter.
Robinhood announced in August that it was slashing its staff by 23%, or 780 people, to reduce costs amid a continuing decline in monthly active users (MAU). Earlier in the year, Robinhood had cut about 9% of its workforce.
In the third quarter, Robinhood’s MAUs fell to 12.1 million from 14 million in the second quarter and 15.9 million in the first quarter as “customers continued to navigate the volatile market environment,” the company said. The company’s MAUs peaked in the second quarter of 2021 at 21.3 million.
In September, Robinhood released the beta version of its Polygon-based Web3 wallet to 10,000 users. The company said users of the wallet would be able to trade over 20 cryptocurrencies without fees and also connect to decentralized apps and earn yield on assets.
On the company's earnings call with analysts, CEO Vlad Tenev said Robinhood has garnered positive feedback about its self-custodial Web3 wallet, and plans to roll out the product globally. "We're excited that this will be our first product available to people all over the world," Tenev said.
He also noted that Robinhood continued to make more coins available for users to trade in the third quarter, including USDC, its first stablecoin.
Overall, for the third quarter Robinhood posted an adjusted loss of 20 cents a share, ahead of the consensus analyst estimate of a loss of 31 cents a share, according to FactSet, on revenues of $361 million, just shy of the analyst estimate of $362 million.
Shares of Robinhood were up 2.6% to $11.70 in after-hours trading on Wednesday. Shares are down about 34% year to date.
Michael Bellusci contributed reporting to this story.
UPDATE (Nov. 2, 21:32 UTC): Added comments from Vlad Tenev from the conference call.
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