Robinhood Plans European Expansion for Crypto Services Amid Q3 Revenue Decline

By: Eliza Bennet

Famed trading platform, Robinhood, has announced its aggressive expansion plans into the European Union. In the company's third quarter earnings report, it revealed intentions to launch cryptocurrency trading services in Europe, pending regulatory approval, following the imminent launch of brokerage services in the UK. This comes amid witnessing a significant dip in its crypto revenue. Comparing Q3 2023 to Q3 2022, Robinhood's crypto transaction revenue fell 55% from $51 million to $23 million, making up only 12% of the company's total transaction revenue.

The motivation for launching crypto-based products internationally is primarily to expand its customer base. Despite a revenue shortfall, Robinhood reported 29% growth in overall revenue compared to the same period last year, with the net revenue of $467 million, just shy of the average analyst estimate of $478.9 million. The platform aims to persist its growth trajectory by enhancing its existing products while developing new offerings, including a future trading launch.

The expansion into Europe faces the challenge of navigating diverse regulatory environments in the cryptocurrency trading landscape. Notwithstanding, Robinhood expressed confidence in its mobile-first approach to attracting new international clients amidst market volatility.