Robinhood Markets Inc.’s cryptocurrency trading revenue fell in the fourth quarter and missed Wall Street expectations, marking a second-consecutive quarter-over-quarter decline in the wake of the meme coin frenzy early last year.
Crypto revenue was US$48 million ($64.9 million), a 6% decline from the prior quarter, missing the US$55 million average estimate of analysts surveyed by Bloomberg. Still, it increased 304% from a year ago. Shares of Robinhood fell about 12% in post-market trading after the firm reported total revenue that was also short of Wall Street estimates.
Crypto offerings have been a core strategy of Robinhood, and its zero-commission transactions have helped it enlist new users, making it a major competitor to cryptocurrency exchanges such as Coinbase Global Inc. During the second quarter last year, Robinhood brought in US$233 million in crypto-trading revenue, as retail investors plowed into digital assets like Bitcoin. In the third quarter, crypto revenue -- 40% of which was made up from Dogecoin trading -- plunged to US$51 million.