Robinhood has reported that its revenue fell from $233m to $51m in the last quarter, mostly because of the dip in Dogecoin’s (DOGE) performance.
The company cited a 78% decline in its crypto revenue as the market frenzy stoked by Tesla CEO Elon Musk cooled off. While DOGE wasn’t the only contributing factor, it was the main one.
“In Q2, the story was about crypto, especially DOGE”, company CFO Jason Warnick told investors in the Q3 earnings call on Tuesday. Robinhood’s results were at $365m in total revenue and the company recorded a $1.37bn loss in Q3.
However, Robinhood reported a big surge in signups for its new crypto wallet, which still hasn’t been launched. More than one million people have registered nevertheless.
Robinhood has had a string of interesting developments in 2021. The company spearheaded the so-called GameStop stock rally in which short-sellers saw themselves in trouble after an army of Redditors took to Robinhood to beef up the retailer’s stock value.
The company also benefited from the DOGE rally fuelled by Tesla’s forays into Bitcoin and the general crypto optimism that washed over the world in the first and second quarters of the year.
During the earnings call, Robinhood answered a number of questions, including a speculative one about the introduction of new coins to the platform and Shiba Inu.
Warnick said that new listings are coming but he also said that Robinhood was aware of the increased regulatory scrutiny in the sector.