Shares of Robinhood Markets Inc. fell more than 8% in the extended session Tuesday after the online trading platform reported a wider quarterly loss and lower-than-expected sales, saying lower crypto-related revenue led to “considerably fewer” new funded accounts and dragged quarterly revenue down.
Robinhood HOOD, +1.44% said it lost $1.32 billion, or $2.06 a share, in the third quarter, compared with a net loss of $11 million, or 5 cents a share, in the third quarter of 2020, and a FactSet consensus of a loss of 67 cents a share.
Sales rose 35% to $365 million, compared with $270 million in the third quarter of 2020. Analysts polled by FactSet expected sales of $437 million for the quarter.
“Crypto activity declined from record highs in the prior quarter, leading to considerably fewer new funded accounts, a slight decline in net cumulative funded accounts, and lower revenue in the third quarter of 2021 compared with the second quarter of 2021,” the company said in a statement.
For the fourth quarter, some of the factors that weighed on the third quarter results, “such as seasonal headwinds and lower retail trading activity, may persist,” Robinhood said.
The company guided for fourth-quarter revenue “no greater than $325 million” and full-year revenue of less than $1.8 billion. The analysts surveyed by FactSet expect fourth-quarter revenue of $497 million and full-year revenue of $2 billion.
The company also said it expects that new funded accounts for the fourth quarter will be roughly flat compared with the 660,000 opened in the third quarter of 2021.
Robinhood went public in July, and shares skyrocketed to more than double its initial public offering price.