August 20, 2021: -Robinhood’s revenue above doubled in the second quarter to $565 million, bolstered by a massive increase in crypto trading, the stock trading app said in its earnings report as a public company on Wednesday.

But the shares decreased after-hours trading after the company warned a slowdown in trading activity would hit revenues in the current quarter. Investors may also be concerned volatile if crypto can continue to provide such a tailwind.

Revenue increased above 131% in the period from $244 million a year ago and was near the high range of the coming $546 million forecasts to $574 million.

Revenue from crypto trading totaled $233 million, above half of the transaction-based revenue of $451 million for the second quarter. Cryptocurrency’s share of revenue increase to above 51% from 17% in the first quarter.

Over 60% of cumulative net funded accounts traded crypto in the quarter. In the second quarter of 2020, crypto-based revenue was only $5 million.

Clients’ trading options contributed $165 million to transaction-based revenue last quarter, and equities were $52 million. Robinhood also earns income off of its gold subscription service.

Assets under custody ballooned 205% to $102 billion in the second quarter of 2021, compared with $33 billion in last year’s second quarter.

Robinhood warned investors that a slowdown in trading could affect its third-quarter results after a record second quarter.

“For the three months finished September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in fewer revenues and considerably lesser new funded accounts than in the prior quarter,” the company’s earnings release shows.

On Wednesday, the shares of Robinhood dropped above 8% in after-hours trading. Robinhood shares increased 6.7% to $49.80 in the results.

Robinhood reported a net loss of $502 million, or $2.16 per share. That’s within the expected net loss of $487 million to $537 million forecast by the company. The brokerage was turning a profit in the same quarter in the previous year. Costs associated with the change in fair value of convertible notes and warrant liability totaled $528 million in the second quarter of 2021. 

Total funded accounts totaled 22.5 million as of the second quarter, according to Robinhood’s forecast. This is up from 18 million in the first quarter, which increased 151% from a year earlier.