Robinhood Markets (NASDAQ:HOOD) shares plunged more than 14% intra-day today after the brokerage firm released its third-quarter earnings, which showed revenues missing analyst expectations due to a decrease in platform users.
The company disclosed a third-quarter loss of $0.09 per diluted share with revenue reaching $467 million. This fell below the revenue projection of $480.06 million that analysts had anticipated, though the per-share loss was slightly less than the expected $0.10. The shortfall in revenue was mainly attributed to a 13% decline in equities trading revenue and a significant 55% drop in cryptocurrency trading revenue compared to the same quarter the previous year.
Monthly active users on the Robinhood platform decreased by 16%, down to 10.3 million in the third quarter on a year-over-year basis.