Robinhood Stock Falls On Trading Platform's Q2 Earnings: What You Need To Know

Robinhood Markets Inc HOOD reported earnings for the first time as a public company Wednesday afternoon after the market close.

The company reported total net revenues increased 131% in the second quarter of 2021 to $565 million versus $244 million in the same period last year. 

The company said transaction-based revenues increased 141% to $451 million in the second quarter versus $187 million in the same period last year.

Cryptocurrencies played an integral role in the growth of the company. In the second quarter of 2020, cryptocurrencies accounted for $5 million in revenue for Robinhood. Fast forward a year, and in the same quarter, cryptocurrencies drove more than $230 million in revenue.

Net loss was $502 million in the second quarter of 2021, or $2.16 per diluted share, compared with net income of $58 million, or 9 cents per diluted share in the second quarter of 2020.

Adjusted EBITDA (non-GAAP) was $90 million in the second quarter of 2021, compared with $63 million in the second quarter of 2020.

Robinhood's Monthly Active Users: Robinhood saw a more than 100% increase in monthly active users year-over-year. In the second quarter of 2020, Robinhood reported 10.2 million monthly active users. In the recent quarter, the company had more than 21 million monthly active users, for an increase of 109%. 

The company also announced that it will be increasing its customer service, and provide live phone support. Robinhood said it hired and trained hundreds of customer service representatives to improve its experience for users. 

"Our business is affected by many factors, including seasonality, general market conditions and retail trading behavior as well as significant, unanticipated market events. Many of these factors worked in our favor during the three months ended June 30, 2021, resulting in a very strong quarter with record revenues," according to the company.

"For the three months ended September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter."

HOOD Price Action: Robinhood shares gained 6.71% in Wednesday's regular session to $49.80, but the stock was pulling back by 5.44% to $47.09 in after-hours trading.