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Robinhood’s Revenue Falls as User Numbers Dwindle

An unexpected loss in the profits and revenue of the Robin Hood platform with a decrease in the number of active users

Retail broker Robin Hood posted a larger-than-expected loss as revenue shrunk in the first quarter, showing signs of the demise of the boom in the small retail trading sector that dominated Wall Street a year ago.

Robin Hood emerged as one of the main companies in the market during the saga of meme shares during the past year, coinciding with the registration of retail traders on new accounts through the platform and supporting the accelerated movements in various stocks such as GameStop, which was reflected in difficult comparisons during the first quarter, but the slowdown in the activity of Trading was worse than expected.

Robin Hood’s loss fell to $392 million, or 45 cents per share, during the three months ended March 31, after it was $1.4 billion, or $6.26 per share a year ago, but the loss was greater than analysts’ expectations, which was only 36 cents per share. , As for revenue, it fell 43% compared to the same period last year to $299 million, failing to reach expectations of $355.8 million.

Robin Hood stated that the number of monthly active users has decreased to 15.9 million users, down from 17.7 million during the first quarter of last year and 17.3 million users during the previous quarter, and the average revenue per user has fallen to only $53 compared to about $137 a year ago. and $64 during the previous quarter, which pushed the company’s shares to decline by 2.8%. Read More [Robinhood Loses Active Users in The Fourth Quarter].

As part of its drive to reignite revenue and user growth, Robin Hood introduced new products and features, announcing in late March that it was extending extended trading hours, and also launched digital wallets for clients earlier in April. Read more [9% of Robinhood Employees are Terminated Due to Growth Slow].

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