Following the retail brokerage’s announcement on Wednesday that it is seeking to increase its growth in Europe and that trading volumes had decreased during the previous quarter, shares of Robinhood plummeted.
In addition, Robinhood reported a 16% decrease in monthly active users to 10.3 million in the third quarter compared to the same period the previous year.
Revenue for the third quarter increased 29% to $467 million, although it was less than the $480 million experts had projected. Wall Street was surprised by the company’s net loss, which decreased to $85 million, or 9 cents per share.
Comparing the third quarter of this year to the same period last year, transaction revenue related to stock trading fell by 13%, which negatively impacted revenue. Year over year, cryptocurrency trade fell by 55%. Options trading remained unaltered. This resulted in an 11% decrease in its transaction-based revenue overall.
The stock just saw a decline of over 12%. As of now, shares are up almost 20% on the year.
“We’ve put a lot more value in products like Robinhood Gold over the past year, including a 3% match on IRA contributions and a 4.9% annual income on cash,” stated Vlad Tenev, CEO of Robinhood, in the company’s results statement. “Going forward, we’re still committed to changing the industry for the better, gaining market share, growing globally, and offering industry-leading products that meet a greater proportion of our clients’ financial needs.”