Robinhood released its second-quarter earnings report which shows an achievement in profit and a drop in crypto revenue by 18%.
A California-based company Robinhood published this earnings report on August 2. Robinhood company revenue from cryptocurrency transactions dropped to $31 million from $38 million in the previous quarter.
Other transactions also dropped; options decreased 5% to $127 million, and equity decreased 7% to $25 million. In the first quarter, its revenue was $207 million dropped to $193 million.
Although there is a loss in revenue, it still shows a net income of $25 million, or earnings per share (EPS) of $0.03, compared with a net loss of $511 million, or EPS of -$0.57, in Q1 2023.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 31% sequentially to $151 million. Adjusted EBITDA margin (non-GAAP) increased 5 points sequentially to 31%.
There is a small increase in crypto assets under custody, which was $8.431 billion in December 2022, and now it is $11.503 billion in June 2023. This asset value increased by 13% to $89 billion from last year, driven by “higher equity valuations and continued net deposits.”
“In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company,” said Vlad Tenev, CEO and Co-Founder of Robinhood Markets. “Guided by our bold product roadmap we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better.”
The net deposit of Robinhood was $4.1 billion in Q2 2023 and was an annualized growth rate of 21% relative to AUC(Assets Under Custody) in Q1 2023. Over the year, there is 25% growth, which amounts to $16.1 billion in AUC at the end of Q2 2022.
Also Read: Robinhood Markets Faces Layoffs Amidst Challenges: Reports
