Robinhood revenue rises 12% as options and event contracts boost growth

Robinhood just showed what happens when your old favorite product cools off and the new kids step up. The company posted third-quarter total net revenue of $1.42 billion, a 12% increase from the same period last year that landed in line with expectations. The growth didn’t come from crypto. It came from options and event contracts, while crypto revenue fell by more than half. Investors still found something to frown at. Shares dropped roughly 3% in after-hours trading because total transaction revenue came in slightly below Wall Street estimates compiled by StreetAccount. The numbers behind the quarter Robinhood released the results on October 27. Transaction-based revenue rose 19% year over year to $867 million, and that line did most of the heavy lifting. Options trading was the single biggest contributor. It generated $399 million in the quarter, up 31% from a year earlier, while options contract volumes climbed 48%. Event contracts were the breakout act. Revenue from them reached $173 million, representing growth of more than six times year over year. Trading volume in event contracts rose to 16.4 billion. Now for the part crypto watchers will notice first. Crypto revenue fell ...