Shares of Robin Hood markets company (NASDAQ:HOOD) experienced a decline in trading after the market closed, following the company’s announcement of below-forecast revenues.
This coincides with the fact that bitcoin has risen above the level of 35 thousand dollars in the last 24 hours.
Robin Hood attributed this decrease in revenue to the decline in the volume of trading in cryptocurrencies, which negatively affected its revenue from trading operations.
The company announced a net revenue of 467 million dollars, a figure that differs from analysts ‘ forecasts, which had expected an average of 478.9 million dollars. Despite this, this figure represents an increase of 29% compared to the same period last year.
Transaction-based revenues decreased by 11% compared to the previous year, reaching USD 185 million. This decline is due to a significant decrease in the virtual trading volume of cryptocurrencies, which has seen a decline of 55% over the year, as “Robin Hood” announced on Tuesday in its statement.
The company’s shares closed yesterday trading on a rise of 1.77%, while falling by more than 8% in after-hours trading.
The company, which is considered a leader in commission-free trading applications, has announced its intention to launch a cryptocurrency trading platform in the European Union, as well as brokerage operations in the UK over the coming weeks, as it seeks to expand on a global scale.
“Robin Hood” gives users the ability to trade in several digital currencies, including Bitcoin, Ethereum, Dogecoin and Shiba Inu. Last June,” Robin Hood ” announced that it would remove three currencies from its cryptocurrency trading platform, namely Solana, Cardano and Polygon, after a high-profile regulatory tightening campaign on some of the largest trading platforms in the sector.
The company targets small traders, and previously benefited from the growing interest in cryptocurrency trading during the covid-19 pandemic, but this interest waned after a series of high – profile failures that shook the crypto market when the bankruptcy of the “FTX” platform (FTX) – which provoked accusations of fraud and led to the trial of its founder Sam Bankman-led to a sharp drop in the prices of digital currencies, including bitcoin, the value of which reached below 16 thousand dollars.
