Robinhood announces Q2 earnings, boom in crypto trading

Yahoo Finance's Ines Ferre breaks down Robinhood's first earnings report since going public.

Video Transcript

ADAM SHAPIRO: All right, let's bring in Ines Ferre to tell us what those Robinhood earnings are. You're muted there, Ines. Can you unmute, please? I think we're having an audio--

INES FERRE: Here we go. Here we go.

ADAM SHAPIRO: There we go.

INES FERRE: So Robinhood second-quarter loss coming in at $502 million, total revenue coming in at $565 million. That actually was above what the Street was expecting. Keep in mind that there are only three analysts covering right now the stock because of that quiet period after the IPO transaction-based revenue coming in at $451 million and monthly active users, 21.3 million.

We're seeing the stock in after hours, it's trading lower, down about 2%. I do want to mention, though, crypto, crypto transaction-based revenue coming in at $233 million. That's more than half of its total transaction-based revenue. And you can compare this from the second quarter of this year to the second quarter of 2020 when crypto transaction-based revenue was just $5 million. The company also saying that 60% of its customers traded crypto in Q2. So what analysts were expecting was to perhaps see a slowdown in equities trading, perhaps if crypto was going to fill that gap-- if crypto trading would fill that gap.

Also, what's very important is the earnings call, which will be in a little while. And it will be interesting because the company is taking questions from shareholders. Individual shareholders, retail traders were able to submit questions to the company, and those that were up-voted the most would be answered by management. So the company really leaning into its retail user base, Adam.

EMILY MCCORMICK: All right, thank you for that breakdown, Ines. And again, we are seeing shares of Robinhood moving lower by about 2% following that. report.