As the crypto market recovers from historic defeat, Robinhood, an online brokerage that offers digital assets, stocks and other investments, plans to lean towards other products despite increasingly relying on Crypto trading volume in recent years.
“It’s going to go up and down in terms of trading volume,” Robinhood CEO Vlad Tenev said in a revenue call with shareholders on Wednesday that he recognized Crypto’s trademark volatility. “We are diversifying our business beyond the crypto business. This will make us less dependent on crypto trading volume.”
Robinhood reported $927 million in first quarter revenue on Wednesday. This slightly elicited revenues surged to a record $1 billion since the end of last year. DIP is partly because our crypto-related revenues fell 30% from $358 million in the last quarter to $252 million. Cryptocurrency trading volume on the platform will go from $71 billion in the fourth quarter to $46 billion in the first quarter.
Since introducing Crypto in 2018, the asset class has driven a significant portion of the Robinhood. This mainly results from sending customer trading orders to external companies called market makers. But the revenue from that code often falls into an unpredictable wave. In 2021, revenue from novelty token Dogecoin helped fuel a record quarter, but dried up a few months later.
On his latest ride at Crypto Roller-Coaster, Robinhood won a surge in revenue last quarter after energizing President Trump’s election. But since then, it has been as low as $84,000 amid the broader market fallout from Trump’s trade war.
Crypto revenues fell from the previous quarter, but Robinhood’s revenue report broke analysts’ forecasts, which predicted lower volumes would have a significant impact on the company’s revenues. According to data from the Wall Street Journal, Robinhood reported earnings per share of 37 cents, surged past analyst expectations at 33 cents. The company’s revenues also increased 50% from the same period last year.
After the transaction, Robinhood shares rose almost 2% on earnings news.
This story was originally featured on Fortune.com.