Dogecoin is huge on Robinhood

Robinhood’s (HOOD) newest quarter was all about crypto, particularly Dogecoin (DOGE-USD). The funding app reported greater than half of its complete transaction-based income got here from crypto buying and selling which totaled $233 million, in comparison with simply $5 million for a similar quarter final yr.

Dogecoin made up 62% of all crypto buying and selling quantity, in comparison with 34% within the first quarter. The corporate mentioned it is engaged on new crypto options and including extra cash.

Shareholders had been in a position to submit questions forward of yesterday’s earnings name. One in all them requested whether or not Robinhood would quickly supply a crypto pockets.

“It is one thing that our groups are engaged on,” answered CEO Vladimir Tenev. He added that it is “difficult” to develop crypto wallets at scale, although it’s a key precedence.

Robinhood so as to add cash on dogecoin and crypto curiosity

“Over time, as our numerous merchandise obtain maturity, it is best to see continued diversification and fewer reliance on anyone income stream, resembling cost for order circulate,” mentioned CFO Jason Warnick.

“We’re already seeing promising indicators of this in Q2 with cost for order circulate for equities and choices as a share of our income, declining to 38% from 64% within the prior quarter as buyer curiosity in Crypto elevated,” he added.

PFOF is when brokerages funnel customers’ trades to market makers which pay a payment to execute them.

Wall Road has been paying shut consideration to any regulation from Washington on the follow. HOOD just lately rallied following a headline that Congress would shelve a ban on PFOF.

“We don’t anticipate cost for order circulate to be banned,” mentioned Warnick throughout the convention name.

The corporate reported complete income of $565 million, a 131% yr over yr enhance.

Its internet loss got here in at $502 million, or $2.16 per diluted share. For the third quarter, Robinhood expects “seasonal headwinds and decrease buying and selling exercise throughout the trade to end in decrease revenues and significantly fewer funded accounts than within the prior quarter.”