Home » Robinhood surprisingly assists Fed rates on accounts. The trading app finds sprint on Wall Street

Robinhood surprisingly assists Fed rates on accounts. The trading app finds sprint on Wall Street

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Robinhood surprisingly assists Fed rates on accounts.  The trading app finds sprint on Wall Street

L’app on online trading, Robinhood released Q3 earnings, beating analysts’ estimates thanks to higher interest margins earned thanks to Fed rate hikes.

Nonetheless, the trading platform failed to keep monthly active users in line with consensus expectations. The company led by Vlad Tenevhe lost 1.8 million users monthly assets for the period, this is a quarterly decline of 12,8% a 12.2 millionthe lowest level since it has been listed on the stock exchange.

Shares of HOOD, which lost over the 33% since the beginning of the year, they are up by 4,8% in pre-market trading a $11,95erasing much of the sell-off. Compared to the annual lows of June 16, the stock rose by approximately 68%.

“In the third quarter, we met our goal of achieving adjusted EBITDA profitability, a better quarter than expected,” he said. Vlad TenevCEO and cofounder of Robinhood.

Here are the Robinhood third quarter numbers

Third quarter options trading revenue was $ 124 million. Stock trading contributed $ 31 million, a 7% improvement from the previous quarter.

Meanwhile, revenue from cryptocurrency transactions fell by 12% a $ 51 million dai $ 58 million of the second quarter. This is due to crypto assets trading volumes that have fallen sharply globally over the past quarter.

“We met key feature requests for clients, including advanced charting, cash account options, instant withdrawals and our web3 self-custody wallet,” said Tenev. “Next week, we will increase the return on uninvested cash for i Gold membersmaking it one of the best rates in the industry ”.

Here is the main data from Robinhood:

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Revenues: $ 361 million compared to expectations of $ 357.7 million

Perdite Q3: $ 175 million or $ 0.20 diluted earnings per share compared to expectations of $ 0.27 diluted earnings per share

Monthly active users: 12.2 million compared to expectations of 13.74 million

Over the past year, Robinhood’s transaction revenues have dropped by $ 266 million in the third quarter of 2021 to $ 202 million in the final quarter. This quarter, transaction revenues are equal to $ 208 millionbelow the expectations of $ 211.45 million, according to Bloomberg.

Like many high-growth peers targeting small investors or retail investors, Robinhood has made heavy spending cuts to achieve profitability.

It is worth mentioning that in June, the company announced it had laid off more than 1,000 employees after closing two offices earlier this year. The strongest point of the past quarter for the Menlo Park, California-based company was net interest revenue, up 73% to $ 128 millionthanks to the Fed interest rate hike in recent quarters.

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