Robinhood Markets Inc (NASDAQ:HOOD) reported third quarter revenue that missed Wall Street estimates due to a slowdown in trading activity on its investment platform, sending its sharing falling after Tuesday’s closing bell.
Shares of Robinhood were down 6.7% at US$9.11 following the release of its financial results.
For 3Q, the company said its revenue grew 29% year-over-year to $467 million. Analysts, however, had been expecting revenue of $480.2 million.
Robinhood attributed its increased revenue to higher net interest and other revenue, partially offset by lower transaction-based revenue.
Transaction-based revenue decreased 11% year-over-year to $185 million, with options unchanged at $125 million, equities down 13% to $27 million, and cryptocurrencies down 55% to $23 million.
Robinhood's monthly active users decreased 16% year-over-year to 10.3 million.
On a positive note, the company narrowed its net loss from $175 million in 3Q 2022 to $85 million or a loss per share of $0.09, ahead of estimates of a loss per share of $0.10.
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