Robinhood generates Revenue through crypto services but overall net loss: Q4 2021
Robinhood platform reported its earning report of 2021 and found that the exchange faced a huge downfall in its earnings.
Robinhood is a crypto and stock platform. Robinhood is known as a rival of Coinbase exchange. However the crypto Trading services are very limited by this platform, only a few numbers of crypto assets are available to trade in its platform but still, people give huge preference to this platform after Coinbase exchange in the US.
On 27 January, Robinhood reported its earnings report for 2021. The company reported that it lost around $423 million over Q4 $13 million revenue of 2020. Overall last year, revenue was in loss of $3.69 billion.
The price of the HOOD faced a sudden crash due to this news by more than 15% within a few hours, from $10.12 to $9.77.
Besides all these losses, Robinhood successfully grabbed huge Revenue through its crypto-related services. In Q4 2021 Revenue surged by around 304% over Q4 of 2020. In Q4 2021 net revenue through crypto was $48 million. However, earnings in Q3 2021 was $51 million.
It is worth noting that the company is facing a huge downfall in its earnings every quarter. In Q2 2021 its crypto-only revenue was $233 million. And after that, the platform saw only a huge downfall.
Vlad Tenev, Robinhood CEO, explained this downfall and noted that the company was aimed to bring more users on the platform and also to work on more development works.
“We had a momentous year, nearly doubling the number of customers on the platform and making critical investments in our team and infrastructure to support growth.”
Here it is strange to see that the Robinhood platform is struggling in its traditional stock trading business to generate revenue, while it is able to generate huge revenue through its latest crypto trading services. And probably these data reports are forcing Robinhood to work more in crypto-related works.
A few days ago, Robinhood launched its crypto wallet app. At the present time, its crypto wallet is in the beta phase. After the full testing of this wallet, users will be able to deposit and withdraw their assets off to the Robinhood exchange.
Read also: Google Cloud announces its blockchain & crypto team
