Robinhood’s net revenue dropped by 43% as the crypto trading goes down by 39% on the platform and it seems that the platform has been falling out of favor with the retail investors as we can see more today in our latest cryptocurrency news.

Robinhood’s net revenue drops and experienced a sharp decline in the trading activity for Q1 2022 as per the latest reports. The broader market remaining bearish and the recent global equity selloffs also contributed to the disappointing financial figures. The report also showed that the company’s total net revenue was $299 million or a 43% decrease from the $522 million during the first quarter of 2021 and the transaction-based revenue from the tradign cryptos declined 39% to $54 million.

Similar to the high-growth tech companies, Robinhood struggled with profitability but it trimmed the losses over the year and the company reproted a net loss of $392 million or $0.45 per share compared to $1.4 billion or $6.26 per share a year ago but Wall Street also expected a net loss of $0.36 per share. The company’s adjusted EBITDA was negative $143 million which is a huge decline from the positive $115 million a year ago and the monthly active users fell 10% to 15.9 million compared to the 17.7 million a year ago.

The company stated that the results reflected the macroeconomic change as its CEO Vlad Tenev said this is the first time the customers are experienced the opposite of low-interest rates and low inflation but rising markets. The trading activities derived from meme stocks including AMC Entertainment, GameStop, and Dogecoin which accounted for a huge portion of the company’s revenue last year. With the market environment changing in the past 12 months, the growth stocks and crypto are under pressure, and the trading firm experienced difficulties but gained confidence from the investors. While vowing to focus on long-term growth, the company announced to lay off 9% of its employees. At the time of writing, the stock HOOD bounced from the fall during the pre-market hours and traded above $10.0.

As recently reported, Robinhood reported net revenue of $299 million for Q1 2022 including the $54 million for the crypto busienss and the company announced that it will lay off 9% of its employees because of slow growth. Just two days after laying off 9% of its workforce, Robinhood’s revenue increased in the first quarter despite the downfall of 18% from the $363 million reproted in Q4 2021.