Robinhood lists surprising increase in sales, which is fueled by interest payments
Robinhood lists surprising increase in sales, which is fueled by interest payments
Robinhood recorded an increase in total income by 14 %, thanks to the saving grace of the trade app: interest payments-which recorded an increase of 73 %.
The platform reported a net loss of $ 175 million compared to a net loss of $ 295 million in the second quarter of 2022.
Robinhood enables selected users to lend money for trades and calculate interest on the debt. The margin trade is not a new feature for the app, but it has brought more income in the last two quarters because the interest rates have increased.
The net interest rate income rose by 35 % to $ 74 million in the second quarter of 2022, compared to $ 55 million in the previous quarter
The platform strives to dive deeper into the crypto room after introducing the beta version of her self-custody wallet in September.
"We want everyone to have a safe, simple and inexpensive access to the possibilities of the decentralized website," said Vlad Tenev, CEO from Robinhood, on Wednesday during the company presentation .
The company hopes to be able to introduce the wallet in 2023 for international users.
The total number of the monthly active users fell to 12.2 million and was therefore below the expected 13.7 million. This is the lowest monthly number of users since the last quarter of 2020. The transaction proceeds still recorded 3 % in the third quarter of the year, which is mainly due to options that rose by 10 %. The income from cryptocurrency transactions recorded a loss of 12 %.
Robinhood, which went to the stock exchange in 2021 after pioneering work for a toll -free trading structure for shares, the trading session ended by 4.4 % on Wednesday, but acted 3.8 % higher at the time of publication. The shares have fallen by almost 40 % in the previous course.
In the middle of the third quarter of 2022, the trade app announced that it would be released 23 % of its employees, which leads to an estimated decline in expenses by 10 % for 2022. Outstanding employees had the opportunity to remain fully employed by October 1, 2022.
It was the second round of discharge for the company this year: The trading platform released 9 % of its employees in April.
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The contribution "Robinhood publishes surprising increase in sales through interest payments" is not a financial advice.