By George Ward
Equity and crypto trading enterprise Robinhood revealed that its revenue for the third quarter of 2022 lags following what is considered a challenging year for the digital asset industry.
CEO Reveals Robinhood’s Ambition
Following the announcement of its Q3 result, the company’s CEO says the outcome will not get in the way of its drive to serve the market. The quarter-on-quarter data shows that Robinhood’s revenue was slashed by 12%, indicating a decrease in monthly active users (MAU).
In addition, it indicates a 24% drop in trading volume as the two factors result in a combined $51 million loss for the firm. In its results filing, the company detailed that the decline in active users and trading volume is due to users’ inability to navigate the highly unstable digital asset market.
Notwithstanding the setback, Robinhood’s executives have noted that it would continue to plunge resources into the crypto environment. It will also support more crypto assets and launch an international wallet to serve cross-border crypto transactions.
On September 27, 2022, the company rolled out the beta version of its Polygon-based Web3 wallet to about 10,000 customers. Interestingly, more than one million users are already on the waiting list for the full launch.
The company also fully integrated the USDC stablecoin on September 28, after the beta launch of the Web3 wallet.
Robinhood Target International Retail Base
At a roundtable discussion with crypto community members, CEO Vladimir Tenev disclosed that the company plans to launch Robinhood Wallet for international retail users in the coming weeks.
According to the CEO, customers demand more blockchain protocols to expand the types of coins available for swapping and trading.
Meanwhile, Tenev revealed that Robinhood rolled out more tokens in the year’s third quarter. He stressed that the firm is looking to maintain its vision to be the most secure and trusted crypto service provider.
“Customers need to understand and ‘appreciate the direction taken by Robinhood.” “The move might be slow compared to other crypto companies, but Robinhood wants to be deliberate by sticking to its vision and helping protect users and their funds.”
According to its CEO, the exchange has unveiled a “Learn and Earn” crypto education initiative to educate the broader retail base in the long run.
The firm highlights its Q4 goals, including the launch of the Robinhood Wallet and the integration of the Lightning Network system.
Robinhood closed the quarter with a combined net loss of $174 million despite recording a significant revenue increase of 14% to $361 million. The company’s adjusted earnings before taxes stand at $47 million.