After the online broker, Robinhood published its earnings report for the first quarter of 2023 on Wednesday, May 10th, its stock rose by around 2%. The company managed to beat analysts’ estimates both in terms of revenue and earnings per share. Robinhood, however, again reported that its cryptocurrency trading volume declined, albeit slightly.
Robinhood Q1 Report Beats Analysts’ Forecast
The shares of the online broker Robinhood rose by as much as 7% in after-hours trading and by more than 2% at the time of writing, on Wednesday, May 10th. The rise comes after the company posted its better-than-expected earnings report for the first quarter of 2023.
The company managed to beat analyst report both in terms of revenue and earnings per share. It was generally forecast that the broker’s revenue would amount to $425 million and it amounted to $441 million. Similarly, Robinhood’s net loss stood at $511 million—$0.57 per share, instead of the expected 62 cents.
The broker also received a boon from the FED’s aggressive rate hikes as its net interest revenue rose to $201 million compared to the $55 million in Q1 2022. Around the same time it published its report, Robinhood also introduced its “24 Hour Market” enabling traders to trade some stocks and ETFs at any time of the day.
Robinhood’s Cryptocurrency Volume Declines 1% From Q4
In this Wednesday’s earnings report, Robinhood also revealed its cryptocurrency trading volume amounted to $38 million—a one percent decrease from the previous quarter. The numbers continue the declining trend from Q4—which featured a 24% decrease—but are also in line with 2023’s digital assets rally and the broker’s report for January of this year.
Despite the slight improvement from the “crypto winter” of 2022, Robinhood’s cryptocurrency operations have been met with several setbacks. In February, it was reported that the company was under an SEC probe due to its digital assets business. Its Twitter account was also briefly hijacked in late January and used to promote a cryptocurrency scam.
Despite the setbacks, the broker continued improving its digital assets operations and opened its wallet to all iOS users on March 1st. Additionally, commenting on the earnings report, Robinhood’s CEO Vlad Tenev assessed the company had a “great start” this year and called the results “a testament to (their) relentless pursuit of innovation”.
This article originally appeared on The Tokenist
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