But crypto’s $120M revenue contributed 8.4% to the revenue share. Interestingly, the $120M crypto revenue was above analysts’ estimate of $114M.
The prediction markets section contributed 12%, while the remaining 79% was from options, equities, etc.
That said, the L2 was launched in July and leverage memcoin mania to attract users before offering tokenized stocks and other services. As of late October, the L2 has $1.24B in total value locked (TVL), underscoring impressive DeFi activity.
The chain also did nearly $90B in DEX volume in Q3 and is already handling $25B in Q4, underscoring strong speculation.
As such, whether the L2 makes more money in Q4 may depend on broader crypto trading volume and market sentiment. In fact, VanEck’s head of digital research, Matthew Sigel, echoed a similar sentiment.
That said, Robinhood stock, HOOD, dumped by 7.45% to $92.84 on Tuesday due to a revenue and EPS miss. Overall, the stock has declined 31% from its September peak of $126, amid a broader US equity meltdown.
Despite the pullback, Wall Street analysts’ consensus price target is $130, implying a 38% upside potential from current levels.
Overall, Robinhood’s crypto trading activity softened, but its L2 and prediction market boosted revenue. Whether the growth will extend into Q4 remains unclear.
Final Summary
- Robinhood’s crypto revenue increased by 20% to $120M in Q3, up from $100M in Q2
- HOOD stock dumped 7% on revenue and EPS miss, extending the price pullback to 31% since September
