Robinhood Markets Inc (NASDAQ:HOOD) saw its third quarter earnings beat analyst expectations thanks to higher interest earned from rising rates by the retail trading platform.
But the group fell short on maintaining monthly active users at consensus expectations, losing 1.8mln monthly active users during the period, a quarterly decline of 12.8% to 12.2mln, the lowest level since it listed as a publicly traded company.
Third quarter revenue of $361mln beat expectations of $357.7mln while diluted loss per share of $0.20 was better than the $0.27 loss forecast.
Options trading brought in $124mln of Robinhood's revenue with stock trading accounting for $31mln, a 7% improvement over the previous quarter.
Meanwhile, revenue from cryptocurrency transactions fell by 12% from the second quarter to $51mln as crypto trading volumes dropped globally during the quarter.
"In the third quarter, we achieved our goal of reaching adjusted EBITDA profitability, a quarter earlier than planned,” Vlad Tenev, CEO and co-founder of Robinhood said in its earnings statement.
Shares in the company, which have fallen 33% year to date, were up 4% in New York after-hours trading at $11.75.