Insider Intelligence delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.
In-depth analysis, benchmarks and shorter spotlights on digital trends.
Learn More
Interactive projections with 10k+ metrics on market trends, & consumer behavior.
Learn More
Proprietary data and over 3,000 third-party sources about the most important topics.
Learn More
Industry KPIs
Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce.
Learn More
Client-only email newsletters with analysis and takeaways from the daily news.
Learn More
Analyst Access Program
Exclusive time with the thought leaders who craft our research.
Learn More

About Insider Intelligence

Our goal at Insider Intelligence is to unlock digital opportunities for our clients with the world’s most trusted forecasts, analysis, and benchmarks. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive.
Our Story
Learn more about our mission and how Insider Intelligence came to be.
Learn More
Rigorous proprietary data vetting strips biases and produces superior insights.
Learn More
Our People
Take a look into our corporate culture and view our open roles.
Join the Team
Contact Us
Speak to a member of our team to learn more about Insider Intelligence.
Contact Us
See our latest press releases, news articles or download our press kit.
Learn More
Advertising & Sponsorship Opportunities
Reach an engaged audience of decision-makers.
Learn More
Browse our upcoming and past events, recent podcasts, and other featured resources.
Learn More
Tune in to eMarketer's daily, weekly, and monthly podcasts.
Learn More

Robinhood Q3 earnings brought down by crypto trading drop

The news: The trading app’s revenues fell sharply in Q3 2021 due to its oversized reliance on crypto trading, as we predicted earlier this year.

By the numbers: Transaction-based revenues overall reached $267 million, up from $202 million in Q3 2020. However, this is a significant decline from $451 million last quarter as global society inched toward a late-pandemic new normal, driving customers away from the app.

  • The chief culprit was crypto trading. In Q2, crypto represented more than half of transaction revenue at $233 million. This dropped 78% in Q3 to $51 million.
  • Equities trading was likely also impacted as the sector continued its downward trend, accounting for $50 million in revenues, down from $52 million in Q2.
  • But it’s not just trading activity as Robinhood’s user growth also took a hit. It saw “just” 660,000 new accounts, down from 5 million in Q2. Monthly active users also fell from 21.3 million to 18.9 million.

The big takeaway: Robinhood's drop in revenues is industry-wide foreshadowing. After global retail trading volumes fell 14% QoQ in Q3, we expect to see similar results from other publicly listed digital brokers like eToro and Coinbase.

Where does that leave Robinhood? Crypto trading volumes mostly depend on users’ bullishness on crypto prices at any given time, so they could perk back up. And the app shared plans in its Q3 filings about how it hopes to encourage more trading:

  • Crypto recurring investments. The feature—rolled out last month—allows users to set a daily, weekly, or monthly schedule for automatically buying cryptos, encouraging more users to effortlessly trade.
  • Crypto wallet. One million people signed up for its waitlist, which will enable users to transfer their crypto holdings in and out of the platform. The functionality could sharpen its competitive edge against larger crypto exchanges like Coinbase that already offer it.

Finally, while Robinhood hasn’t announced which cryptos it will add next—it currently offers access to seven—adding the right coin at the right time could cause a big trading boost: Dogecoin represented 34% of its crypto transactions in Q2.

Dive deeper: Need more insights on how we expect digital brokers to adapt to falling trading volumes? Click here.