[ad_1]
Robinhood’s (HOOD) earnings name included a collection of beforehand submitted shareholder questions starting from “Will HOOD pay out a dividend sooner or later?” to “Is Robinhood getting a crypto pockets?”
The funding app has no plans to subject dividends, and as for crypto wallets, “it is one thing our crew is engaged on” however it’s at the moment difficult due to scale, answered CEO Vlad Tenev.
In keeping with the corporate’s “democratize finance for all” theme, the buying and selling platform allowed shareholders to submit questions forward of the decision. These with probably the most ‘upvotes’ have been answered by administration.
“What’s subsequent for Robinhood? If PFOF is regulated, what are you able to do?” learn one other shareholder query.
PFOF is when a brokerage agency funnels trades to market makers for a charge. A lot of Robinhood’s previous income has stemmed from cost for order circulation.
CFO Jason Warnick famous Robinhood is continuous to diversify its income stream and can concentrate on its single cash app going ahead, which can imply extra merchandise and extra options.
In a while the decision, Warnick mentioned, “We don’t count on cost for order circulation to be banned.”
Crytpo exercise surges
The corporate reported complete income of $565 million, up 131% yr over yr.
Robinhood reported greater than half of its complete transaction-based income got here from crypto buying and selling, filling the hole for a drop in fairness trades year-over-year. Crypto transaction-based income for the second quarter was $233 million, in comparison with simply $5 million for a similar quarter in 2020.
Nevertheless, the corporate warned of decrease income expectations for the third quarter. Shares fell about 5% in after hours.
[Read more: Robinhood earnings: Crypto trading skyrockets in Q2]
“For the three months ended Sept 30, 2021, we count on seasonal headwinds and decrease buying and selling exercise throughout the business to end in decrease revenues and significantly fewer funded accounts than within the prior quarter” learn the corporate quarterly report.
‘Diamond-handed’
Robinhood highlighted its IPO entry product which it launched in Could. It permits retail merchants to entry shares on the preliminary public providing value.
“Prospects which have been taking part in these IPOs have been comparatively diamond-handed, so to talk … They’ve been holding onto these shares for over 30 days, “ mentioned Tenev.
Ines is a markets reporter protecting shares from the ground of the New York Inventory Change. Comply with her on Twitter at @ines_ferre
Comply with Yahoo Finance on Twitter, Fb, Instagram, Flipboard, LinkedIn, YouTube, and reddit
[ad_2]
Source link