Stock trading app RobinhoodThe third quarter saw a significant revenue loss due to cryptocurrency trading dropping off.

Robinhood said barring any change in the market environment, the headwinds that dragged down last quarter, like lower retail trading activity, will persist into the end of the year.

After-hours trading saw shares of the company drop by 9% on Tuesday.

The third quarter’s total net revenues were $365million, which was below the $431.5 million estimate by Refinitiv. The revenue increased by 35% over the previous year, but was still well below $565 million in second quarter. This is due to a huge increase in cryptocurrency trading.

Revenue from transaction based sales was $267 Million in the third quarter, but only $51million came from cryptocurrency trading. The second quarter saw a record $233 million from cryptocurrency trading, thanks to a large interest in meme-inspired dogecoin.

“Q2 was kind of one of those idiosyncratic market events where there’s this massive interest specifically in doge,” Robinhood CFO Jason Warnick told CNBC. We love those kinds of moments. This is a fantastic way to attract many new customers on the platform. We are really looking at investing long-term in crypto. It’s not possible for us to predict revenue quarter-to-quarter.

Option trading contributed $164 Million and Equities Trading added $50,000,000 to the transaction-based revenues in the third quarter.

The net cumulative accounts decreased to 22.4m from 22.5m in the previous quarter. The monthly active users reached 18.9 million, up from 21.3 million during the second quarter.

In the third quarter, 2020’s average revenue per user dropped 36% to $55, while it was $102 in the same period.

Robinhood suffered a loss of $1.32billion or $2.06 per share. According to Refinitiv, Wall Street expected a loss in the range of $1.37 per shares.

Vlad Tenev, co-founder and CEO of Robinhood Markets, stated, “This quarter was focused on developing more products, services, and products for our customers, which included crypto wallets.” More than 1 million individuals have already joined the waitlist for our crypto wallets.

Robinhood stated that it anticipates fourth-quarter revenues not exceeding $325 millions. According to Robinhood, the company expects accounts growth of the same level as the 660,000 that were opened in the third-quarter 2021.

The company stated in a press release that it expects that “many of the factors that affected our third quarter results such as seasonal headwinds or lower retail trading activity may continue for the three months ending on December 31, 2021.”

Robinhood opened at $38 per Share on July 1st. On Tuesday, the stock was closed at $39.57 per unit.

— with reporting from CNBC’s Kate Rooney.