News
Robinhood beats first-quarter expectations for cryptocurrency revenue
Robinhood Markets (HOOD) released its first-quarter report, revealing revenue of $618 million, beating expectations of $546.8 million. The company’s cryptocurrency-related revenue for the quarter was $126 million, which helped its transaction-based revenue grow 59% year-over-year.
Yahoo Financial Reporter Jared Blikre joins Market Domination Overtime to break down the numbers in Robinhood’s quarterly report.
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This post was written by Nicola Giacobino
Video transcription
Robin Hood.Okay, let’s do it now.And Jared is taking a look at it for us.Yes, please.Uh, first let’s look at the first quarter earnings per share of 18 cents.Uh, but what number is that that people are talking about they’re concentrating is EBITA adjusted for EBITA. Give me a second and I’ll let you know this. Uh, sorry, guys. My notes just disappeared. Well, let’s move on to net revenue. They totaled 618 million. The estimate was 546.8 million. So, quite a hit. Other revenue as a minor category: 35 million versus estimates of 36.2 million. And, uh, we’re looking at transaction-based revenue of 329 million compared to estimates of 255 million. So that’s quite a shot right there. When you get revenue from cryptocurrencies, this is a huge coup. 100 26 million against estimates of 70.9 million. So beat that by about $50 million. Pretty big percentage there, and assets in custody. 129.6 billion. And this is more than the street expected 120.43 billion. So I’m still looking at the results here. But here I have some interesting facts about their first quarter operations. Um, they increased their pension or they tried to beef up their retirement accounts. Uh, they got $4.2 billion in those accounts, up from $0.3 billion at the end of the first quarter a year ago. Um, also considering monthly net active users. And that increased 16% year-over-year to 13.7 million. And also looking at their margin book which increased 32% year over year to 4.1 billion. This is a source of cash. And also, they made some, um, some statements about their gold subscriber account. Uh, Vlad tenev, the CEO saying in the first instance, we will continue to aggressively execute our product road map in the first quarter, driving to all-time highs and net deposits and gold subscribers. And that’s Vlad Tenev CEO and co-founder of Robin Hood. Yes, and he’s also advertising that, you know, they just launched this gold credit card offer, right? So they’re advertising that introduction as well. Obviously, there were some excesses for Robin Hood. There’s been some concern about this notice from Wells, uh, who were reportedly served by the title name just a few days ago. We spoke to Dan Dolo at the time who said concerns were overblown about this. But you know, it’s still something that’s still on investors’ minds, but it’s interesting to see the number of cryptocurrencies beating estimates by such a large margin. You know, you have to ask yourself: will they be forced to take him? They removed some of the tickers that they had related to some of the meme coins. I think I’ve seen some estimates on this. It’s going to be on the order of tens of millions of dollars that it’s going to cost them, both in terms of fines and taking away some of the business there. It’s not a disaster, and I mean, there are still some complaints left from the Robin Hood, uh, Reddit Gamestop phenomenon of 2021. But even those are slowly disappearing. And so those aren’t really relevant to these quarterly results. Okay, thanks, Jared. I appreciate it. And by the way, we should mention Vlad Tenev CEO. We’ll talk tomorrow morning. Exactly. Exactly.