Robinhood, an online stock brokerage that allows users to buy and sell 18 cryptocurrencies, saw an approximately 30% decrease in revenue from crypto transactions in the first quarter of 2023. saw only a $38 million in the most recent quarter. But measured sequentially, revenue from crypto-related transactions fell just 1% from fourth quarter.
The company also announced that they have yet to buy back 55 million shares of the company—a 7.6% stake—from Sam Bankman-Fried, the disgraced founder of crypto exchange FTX, and fellow FTX executive Gary Wang. purchased in May 2022. The Robinhood board is here buyback approved in shares, now worth approximately $500 million.
“Discussions with related parties are ongoing, and we will continue to provide updates as appropriate,” Robinhood said in a statement alongside its first-quarter earnings report.
Total revenue, including cash from crypto transactions, was $441 million, a nearly 50% year-over-year increase, and earnings per share -57 cents on a reported net loss of $511 million. Both the company reported revenue and earnings per share that beat analysts’ expectations, according to data from FactSet.
In after-hours trading, shares rose more than 6% to $9.65.
“We continue to deliver aggressively, increase customer satisfaction, and deliver strong financial performance,” said Vlad Tenev, CEO and cofounder of Robinhood, in a statement.
Despite a 30% year-over-year decline in crypto transaction revenue, a 1% decline compared to the previous quarter may signal that the sharp decline seen during Crypto Winter may be over. it’s almost over.
Coinbaseanother publicly traded company that relies heavily on revenue from crypto transactions, similarly sees a rosier-than-thought first quarter of 2023, beating analysts’ expectations.