Source: Fortune
Summary
Robinhood reported record revenue of $1.31 billion in Q2, beating analyst estimates. Earnings per share also exceeded expectations, driven by growth in its Gold subscription business and prediction market business. Prediction market volume surged to 13 billion contracts, with revenue jumping from $104 million to $156 million. The company’s cryptocurrency business, however, declined 38% year-over-year.
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The numbers tell one story.
Robinhood’s prediction market business is on fire, with volume surging to 13 billion contracts. The company is taking a bigger cut of the revenue, but is also working to lower fees on less popular bets. Meanwhile, its cryptocurrency business is struggling, down 38% year-over-year. The company’s stock initially jumped on the earnings report, but then gave up those gains.
The company’s shift to its in-house offering, Rothera, to manage prediction market transactions is a notable move, as it allows Robinhood to keep more of the revenue.
Author: Evan Null
