Robinhood shares fell around 3% in initial after hours trading Wednesday despite the brokerage reporting record second quarter revenue and earnings that exceeded Wall Street expectations.
The company generated $1.31 billion in total net revenue, an increase of 32% from $989 million during the same quarter last year. The result came in above the approximately $1.26 billion expected by analysts.
Diluted earnings per share rose 48% to $0.62 from $0.42 a year earlier, compared with Wall Street expectations of around $0.41. Net income increased 48% to $573 million.
However, Robinhood said its quarterly results included $129 million in gains primarily related to the deconsolidation of Robinhood Ventures Fund I. Those gains contributed approximately $0.14 to diluted earnings per share.
Transaction based revenue increased 44% to $776 million as growth in equities, options, and event contracts offset weaker cryptocurrency activity.
