Robinhood Markets Inc., a popular online broker, has reported slower revenue growth due to the decline of cryptocurrency prices. The company's stock fell 14% after its earnings report, which highlighted the challenges faced by the sector.
The global crypto market has dropped 40% since its peak in October, and this downturn is affecting Robinhood's business. However, the company's management remains confident in the long-term potential of the crypto market.
Robinhood earns revenue from various sources, including transaction-based fees, equities, options, and prediction markets. While cryptocurrency revenue fell 47% to $134 million, other segments showed solid growth. Net interest revenue increased by 24%, and Robinhood Gold subscription revenue jumped 32%.