Robinhood, 1 Million Sign-Ups for Crypto Wallet with Q3 Results Failing
Robinhood Chief Executive Officer, Vlad Tenev, last week spoke at the Disruptor 50 Summit on where he explained that the waitlist for the company’s recently announced crypto wallet already has 1 million sign-ups.
“We’re very proud of our cryptocurrency platform and giving people more utility with the coins they have,” Tenev said at the event.
The Executive added:
“We rolled out our wallet’s waitlist. A lot of people have been asking for the ability to send and receive cryptocurrencies, transfer them to hardware wallets, transfer them onto the platform to consolidate and the crypto wallets waitlist is well over a million people now.”
Robinhood previously hinted it was testing a new crypto wallet and other features.
The Robinhood CEO further noted that he thinks cryptocurrencies and the crypto economy have become an undeniable force:
“Crypto is certainly here to stay as an asset class and the ease of use and the global nature of it, I think, has made it attractive to lots of people.”
Q3 Earnings
At the back of the Summit, Robinhood on Tuesday released its Q3 earnings, which were rather disappointing.
Robinhood recorded a net loss of $1.32 billion in the past quarter and saw a plunge of 78% in revenue from crypto transactions from Q2. Company shares immediately tanked after the news came out on Tuesday.
Financial analysts estimated Robinhood would report total revenue of $423.9 million, however numbers fell short drastically with only $364.9 million in revenue
Tenev had already predicted that the trading activity would decrease in the third quarter and that fewer accounts would be opened.
Jason Warnick, Robinhood Chief Financial Officer, issued a warning for Q4 and said:
“Total revenue will be less than $325 million and full-year revenue will be less than $1.8 billion. At the top end, this implies full-year revenue growth of 85 percent.”
Warnick also spoke about a “seasonality curve that shows higher growth in the first quarter of the year versus the last three quarters,” and confirmed that company is not worried about the near-term profitability and feel rather safe about being “a profitable company over the long term.”
“We continue to make progress building our teams with increases primarily in engineering, customer service, and our regulatory, and compliance teams. In the quarter, we added 580 new full-time employees across the company, growing 21 percent sequentially versus Q2.”
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Source: igaming
