Robinhood, an American online brokerage known as the "retail stronghold", reported its first quarterly results after its listing. Thanks to a sharp increase in cryptocurrency transactions, the company's revenue more than doubled in the second quarter compared with the same period a year earlier.
Robinhood reported second-quarter revenue of $565 million, up more than 131% from $244 million in the same period last year and close to the high end of the company's forecast range of $546 million to $574 million.
Robinhood posted a second-quarter net loss of $502 million, or $2.16 per share, within the company's projected net loss of $487 million to $537 million. The brokerage made a profit in the same period last year.
Revenue from cryptocurrency transactions totaled $233 million in the second quarter, accounting for more than half of all transaction-based revenue of $451 million in the quarter. The share of cryptocurrency revenue jumped to more than 51 per cent from 17 per cent in the first quarter.
More than 60 per cent of cumulative net capital accounts traded cryptocurrencies in the second quarter, Robinhood said. Revenue from cryptocurrency-based transactions was only $5 million in the second quarter of 2020.
The total number of capital accounts (accounts associated with bank accounts) was 22.5 million in the second quarter, in line with the company's forecast, the company said. The figure was up from 18 million in the first quarter and up 151 per cent from a year earlier.
Robinhood also warned investors that a slowdown in trading could affect its third-quarter results after a record second quarter.
Shares fell nearly 4% in after-hours trading after the results were announced.
Robinhood landed on Nasdaq at the end of last month.It broke on the first day of listing, and the share price closed down more than 8% on the day.