Robinhood Q2 Revenue Up 131% YoY... "Cryptocurrency Sales Account for Half"

Published 19 Aug.2021 07:26(KST)

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] The U.S. securities trading application (app) Robinhood recorded strong earnings in the second quarter, with revenue more than doubling year-on-year, driven by a surge in cryptocurrency-related trading volume.

According to CNBC on the 18th (local time), Robinhood announced that it posted revenue of $565 million (approximately 660 billion KRW) in the second quarter. This represents a 131% increase compared to $244 million in the same period last year.

The company also reported an operating loss of $52 million (approximately 58 billion KRW).

This sharp increase in revenue was analyzed to be driven by the surge in cryptocurrency trading volume.

According to Robinhood, revenue from cryptocurrency-related transactions in the second quarter reached $233 million (approximately 270 billion KRW). This accounts for 51% of the total product trading revenue of $451 million (approximately 530 billion KRW).

In particular, the company stated that more than 60% of all accounts linked to banks were used for cryptocurrency trading.

In the second quarter of last year, cryptocurrency-related revenue was only $5 million (approximately 580 million KRW).

Robinhood reported that the number of accounts linked to banks reached 22.5 million as of the second quarter, an increase of about 4 million from 18 million in the first quarter.

A Robinhood official said that while revenue related to cryptocurrencies such as Dogecoin surged, "If demand for cryptocurrencies declines, our business environment and financial conditions could also deteriorate."

He added, "Since the upcoming third quarter is typically classified as an off-season in the securities market, trading volume is expected to decrease, which could lead to lower revenue compared to the previous quarter."