Robinhood said it anticipates revenue will be lower in the third quarter of 2021 relative to the second quarter.
This is a “result of decreased levels of trading activity relative to the record highs in trading activity, particularly in cryptocurrencies, during the three months ended June 30, 2021, and expected seasonality,” Robinhood said in an amended prospectus released Monday.
Options trading accounts for about 38% of Robinhood’s revenue while crypto is 17% of revenue.Stock trading app Robinhood — which is expected to go public as soon as next week — warned of a potential slowdown in trading revenue and new clients as the boom in retail investing starts to decelerate.
“We expect our revenue for the three months ending September 30, 2021, to be lower, as compared to the three months ended June 30, 2021, as a result of decreased levels of trading activity relative to the record highs in trading activity, particularly in cryptocurrencies, during the three months ended June 30, 2021, and expected seasonality,” Robinhood said in an amended prospectus released Monday.
The slowdown is coming off booming levels. The Menlo Park, California-based free-trading pioneer estimates second-quarter 2021 revenue between $546 million and $574 million. This would be a 129% surge from the $244 million in the second quarter of 2020.
