Robinhood goes all-in on crypto trading

[Hedgemaster]

Robinhood Q2 earnings are out! They made more money from crypto-trading in the Q2 ($233 million) than it did from options trading and equities trading combined! ($218.2 million). Few takeaways:

1) Total Revenues $565M more than 2x last year $244M ;

2) Net Loss of $502M. All of that loss came from an accounting adjustment related to a change in value of notes and warrants held by the company;

3) Q2 Net Cumulative Funded Accounts up 130% to 22.5 million;

4) Monthly Active Users (MAU) up 109% to 21.3 million vs 10.2 million last year;

5) Assets Under Custody (AUC) up 205% to $102 billion in Q2, vs $33 billion a year ago;

6) The company's ARPU (average revenue per user) was actually down to $112 in the second quarter of 2021, compared with $115 in the second quarter of 2020;

7) Robinhood's Payment for Orderflow (PFOF) - the company's bread and butter and the bulk of its revenues courtesy of its main client Citadel - was hit big in Q2 from a sequential perspective, as PFOF dropped 34% in Q2 compared to Q1;

8) The company also disclosed that more than 60% of its funded accounts engaged in crypto trading during this time;

9) The crypto revenue in Q2 amounted to 41% of Robinhood's overall revenue compared to 17% in Q1. Meanwhile, the meme-based Dogecoin accounted for a full 62% of that crypto revenue—nearly double the share it counted for in the first quarter.

The stock is down -5% in after-hours trading.