Robinhood Eyes European Expansion Despite Q3 Revenue Dip Due to Lower Crypto Trading Volumes
Summary:
Robinhood, the stock trading platform, plans to expand into Europe and broaden its services in the UK. Despite missing their third-quarter revenue targets due to reduced cryptocurrency trading volumes, Robinhood reported a net revenue of $467 million, marking a 29% growth compared to the same period last year. As it focuses on increasing its cryptocurrency services, the company extends its support to the Shiba Inu cryptocurrency and also plans to expand its services to Nevada. The expansion to the EU has been planned even with new promotional rules affecting their operations in the UK.
Stock trading app Robinhood has intentions to broaden its scope to Europe in the approaching weeks. Robinhood is assessing the feasibility of instituting its brokerage services in the United Kingdom, as announced on Nov 7th. This announcement coincided with the presentation of its third-quarter outcomes, where Robinhood missed its intended revenue. The drop in transaction-based revenue was pinned on lower cryptocurrency trading volumes on its platform.
Its reported net revenue stood at $467 million, falling short of the predicted $478.9 million by analysts. Nonetheless, this figure does represent a 29% jump when compared to the same quarter in the previous year. Trading based proceeds dipped by 11% year on year to $185 million. A prime factor contributing to this was a 55% reduction in cryptocurrency's notional volumes over the year, as expressed in Robinhood's Tuesday proclamation.
The third-quarter results of Robinhood revealed a dip in cryptocurrency trading activities. However, Robinhood is planning to elevate its cryptocurrency services. Recently plans have been signalled to broaden its services to Nevada and extend its support to the Shiba Inu meme cryptocurrency.
More clarity is awaited on the growth plan for the EU, although Robinhood is yet to give a response on this. The decision to expand has been made at a time when some cryptocurency firms have stopped serving UK customers due to new promotional rules instituted on Oct. 8, requiring them to provide clear risk labels and make systemic changes.
In related news, Robinhood bought back stakes worth $606M from Sam Bankman-Fried owned by the US government. Robinhood discontinued the support to certain cryptocurrencies listed under SEC lawsuits against Binance and Coinbase in June. These include Cardano, Polygon and Solana. Currently, the company supports trading of 15 different cryptocurrencies including Bitcoin, Ether, Dogecoin, and Avalanche. This action was prompted when the U.S. SEC labelled some cryptocurrencies as security tokens. As a regulated exchange, Robinhood is aiming to avoid conflicts with the federal securities regulatory authority.
Published At
11/8/2023 10:15:00 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.