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Robinhood Revenue Rises 131% YoY, Crypto Engagement at Record Levels



Robinhood (NASDAQ: HOOD), the online broker, reported its second-quarter earnings on Wednesday evening, its first as a public company. 

Total revenues increased 131% to $565 million in the second quarter compared to $244 million in Q2 2020. However, it represented just an 8.3% rise from Q1 2021.

One of the key drivers behind the company’s revenue increase was its cryptocurrency transaction-based revenue which increased to $233 million, an enormous leap from the $5 million reported in Q2 2020. In addition, the company said over 60% of its net cumulative funded accounts were trading in crypto during the second quarter.

Options increased 48% to $165 million from $111 million. However, equities transaction-based revenue decreased 26% to $52 million from $71 million in Q2 2020. As a whole, transaction-based revenues rose 141% to $451 million during the quarter, compared to $187 in Q2 2020.

Robinhood

Despite the increase in revenue, the company is still running at a loss, reporting a net loss during Q2 2021 of $502 million, or -$2.16 per share. In the second quarter of 2020, it reported a net income of $58 million, or $0.09 per share.

Adjusted EBITDA (non-GAAP) was $90 million in the second quarter of 2021, compared with $63 million in the second quarter of 2020.

Net cumulative funded accounts rose 130% to 22.5 million in Q2 2021, compared with 9.8 million the previous year. Monthly active users also increased to 21.3 million, up 109% compared to 10.2 million in Q2 2020. Assets Under Custody grew 205% to $102 billion in the second quarter of 2021, compared with $33 billion in 2020. The Average Revenue Per User was $112, compared with $115 in the second quarter of 2020.

Vlad Tenev, CEO and Co-Founder of Robinhood, commented:

Vlad Tenev, Robinhood
Vlad Tenev
Source: LinkedIn

We’re encouraged by the number of people who are accessing the financial system for the first time through Robinhood. We’re happy to expand access through products like commission-free crypto trading, which saw strong growth this quarter among women investors in particular, and IPO Access, which gives customers an opportunity to invest in companies at their IPO price.

Robinhood‘s share price is down 12.05% at $43.80 following the results.

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Robinhood Revenue Rises 131% YoY, Crypto Engagement at Record Levels

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