Robinhood’s revenue more than doubled even as it lost money last quarter.


SAN FRANCISCO — Robinhood, the inventory buying and selling app, on Wednesday reported surging quarterly revenue as pandemic buying and selling turned a everlasting pastime for a lot of clients, however it nonetheless lost money.

In its first earnings report as a public firm, Robinhood said its revenue for the second quarter soared to $565 million, up 131 % from the identical interval last yr.

It additionally lost $502 million, in contrast with a revenue of $58 million a yr prior. The firm attributed a big chunk of that loss to warrants from an emergency funding spherical it raised this yr.

Vlad Tenev, Robinhood’s chief government, stated in a press release that he was “encouraged” by the variety of individuals buying and selling inventory for the primary time through Robinhood. The firm reported 22.5 million consumer accounts with funding in them, a 130 % enhance from 9.Eight million in the identical interval last yr.

A good portion of Robinhood’s progress within the quarter additionally got here from cryptocurrency buying and selling after the worth of Bitcoin and different cryptocurrencies hit report highs within the spring. Revenue from cryptocurrency buying and selling charges totaled $233 million, an almost 50-fold bounce from $5 million a yr earlier. More than 60 % of its clients traded cryptocurrency through the quarter, and more new clients used the app to commerce cryptocurrencies than shares, the corporate stated.

Robinhood’s initial public offering in July was a disappointment. The firm’s inventory started buying and selling at $38 a share, which was the underside of a value vary proposed by its bankers. The shares then fell, ending their first day down 8.four %.

Per week later, particular person inventory merchants started driving the worth up, principally via the buying and selling of choices, a high-risk type of buying and selling that Robinhood facilitates. The firm’s shares then jumped as excessive as $70 every.

The rally turned Robinhood into the type of “meme stock” that trades primarily based on momentum and sentiment moderately than enterprise fundamentals. Nothing had modified in Robinhood’s enterprise outlook to affect the sudden surge.

The firm’s share value has since settled at round $50 per share, valuing the corporate at $41.Eight billion. Its shares fell more than 7 % in after-hours buying and selling on Wednesday.

Robinhood has helped gas meme shares by facilitating merchants who’ve repeatedly pushed up the costs of growing old brick-and-mortar companies like GameStop, the online game retailer, and AMC, the movie show chain. Robinhood’s mission to convey Wall Street-style investing to on a regular basis individuals has included choices buying and selling and different dangerous bets, main some clients to report surprising losses and drawing the ire of those that imagine in a more conventional “buy and hold” investing technique.

Robinhood included that ethos into its public market debut, allocating an unusually large portion of its I.P.O. shares to retail investors via its app and permitting clients to pose questions in its investor pitch and earnings calls. This month, it spent $140 million to accumulate Say Technologies, an organization that facilitates investor query and reply classes and proxy voting.

Yet like many Silicon Valley corporations, Robinhood has additionally restricted the rights of its shareholders by issuing a number of lessons of shares. That construction has given its founders, Mr. Tenev and Baiju Bhatt, voting management over the corporate.

Before the corporate launched its outcomes on Wednesday afternoon, one of many top shareholder questions, with more than 900 votes, was whether or not traders may get a Robinhood hat and “hoody jacket.”

Jason Warnick, Robinhood’s chief monetary officer, stated he would look into it. “I love the enthusiasm for the brand,” he stated.



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