The company’s EBITDA grew by 31% progressively to $151 million.
Robinhood is getting ready for expansion in the UK.
Despite a decline in revenue, Robinhood announced profitable results for the second quarter of 2023, marking the first time the firm has turned a profit since becoming public.
The trading platform had an 18% decline in quarterly revenue from crypto transactions to $31 million, as reported in its financial report on August 2. From $202 million in June of last year to $193 million this year, its revenue has dropped by 4%.
Managed to Turn Profit
Despite a drop in revenue, the firm nevertheless managed to turn a profit of $25 million, or $0.03 per share, in the second quarter of this year. Total operational expenditures have improved over the previous several months, decreasing by about $45 million on average.
The company’s EBITDA grew by 31% progressively to $151 million, with the margin increasing by 5 percentage points to 31%. Last quarter, the total assets in custody rose by 13% to $89 billion on the back of “higher equity valuations and continued net deposits.”
With a net deposit of $4.1 billion, Robinhood had an annualized growth rate of 21% compared to the first quarter of 2023 for assets under custody. Net deposits were $16.1 billion in the last 12 months, up 25% year over year.
In anticipation of the upcoming second-quarter earnings releases for Coinbase (COIN) and Robinhood (HOOD), Ark Invest CEO Cathie Wood allegedly dumped millions of dollars worth of shares in both companies.
On the other hand, Robinhood is getting ready for expansion in the UK. Because of this, a top executive from the British fintech company Freetrade has been recruited by the US stock trading app.