Robinhood’s Crypto Revenue Declined 12% to $51 Million in Q3

Online trading brokerage Robinhood’s (HOOD) reported $51 million in crypto revenue in the third quarter, down 12% from $58 million in the second quarter.

Robinhood announced in August that it was slashing its staff by 23%, or 780 people, to reduce costs amid a continuing decline in monthly active users (MAUs). Earlier in the year, HOOD had cut about 9% of its workforce.

In the third quarter, Robinhood’s MAU’s fell to 12.1 million from 14 million in the second quarter and 15.9 million in the first quarter, as “customers continued to navigate the volatile market environment,” the company said. The company’s MAUs peaked in the second quarter of 2021 at 21.3 million.

In September, Robinhood released the beta version of its Polygon-based Web3 wallet to 10,000 users. The company said users of the wallet would be able to trade over 20 cryptocurrencies without fees and also connect to decentralized apps and earn yield on assets.

Overall for the third quarter, Robinhood posted an adjusted loss of 20 cents a share, ahead of the consensus analyst estimate of a loss of 31 cents a share, according to FactSet, on revenues of $361 million, just shy of the analyst estimate of $362 million.

Shares of Robinhood were up 2.6% to $11.70 in after-hours trading on Wednesday. Shares are down about 34% year to date.

Robinhood is scheduled to host an earnings call with analysts at 5 p.m. ET.