Reporter | Si LinweiOn October 27th, American internet brokerage Robin Hood (NASDAQ stock code: HOOD) released its financial report for the third quarter of 2021. According to the financial report, Robinhood's total net revenue in the third quarter was $365 million, compared to $270 million in the same period last year, a year-on-year increase of 35%; And its net loss in the third quarter was 1
Reporter | Si Linwei
On October 27th, American internet brokerage Robin Hood (NASDAQ stock code: HOOD) released its financial report for the third quarter of 2021. According to the financial report, Robinhood's total net revenue in the third quarter was $365 million, compared to $270 million in the same period last year, a year-on-year increase of 35%; And its net loss in the third quarter was 1.32 billion US dollars, a significant increase from a net loss of 11 million US dollars in the same period last year.
After the financial report was released, Robinhood's stock price fell by about 8% in after hours trading on Tuesday, with the latest quote remaining around $39.
It is reported that the majority of its expenses were concentrated on the share based compensation expenses in the third quarter of 2021, totaling $1.24 billion, of which $1.01 billion was a one-time equity incentive during its IPO.
In terms of user data, Robinhood's monthly active users (MAUs) increased by 76% to 18.9 million, compared to 10.7 million in the third quarter of 2020. Meanwhile, its AUC increased by 115% year-on-year to $95 billion, compared to $44 billion in the third quarter of 2020.
But its business in the third quarter began to show a negative growth trend compared to the second quarter. Robin Hood's net revenue in the second quarter was $565 million, a decrease of $200 million in the third quarter, a 35% decrease compared to the previous quarter.
Meanwhile, according to the financial report, its cryptocurrency revenue decreased to $51 million in the previous quarter, a 78% decrease from $233 million in the second quarter.
Robin Hood attributed the good performance in the second quarter to Dogcoin, but its cryptocurrency business declined rapidly in the third quarter.
In the second quarter, the story was about cryptocurrencies, especially DOGE, "Robinhood CFO Jason Warnick said in a conference call that in the third quarter, customers' attention shifted more from cryptocurrencies to stocks.
But Robinhood chose to continue adding cryptocurrency business. Warnick, its Chief Financial Officer, pointed out that over 1 million customers have registered for Robinhood's upcoming encrypted wallet. On September 22nd, Robinhood announced the official launch of cryptocurrency wallets and transfer functions.
Robin Hood CEO VladTenev said on the financial report conference call that the company is waiting for regulatory confirmation before providing customers with seven cryptocurrency transaction pairs currently involved, including Bitcoin, Bitcoin Cash, Doggie Coin, Ethereum, Ethereum Classic and Litecoin. But Tenev emphasized that the company will be very cautious.
At the beginning of 2021, a large number of retail investors from US stocks flocked to the Robin Hood platform, which claims to have no transaction fees, and Wall Street financial institutions staged a "long short battle" in multiple stocks such as "Game Station (GME)" and "AMC Theater (AMC)", which brought a large number of new users to Robin Hood. At the same time, as retail investors turned to dog coins, Robinhood became one of the main trading bases for dog coins. On July 29th, Robin Hood, an online securities firm in the United States, officially landed on the Nasdaq with an issuance price of $38.
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