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Robinhood’s first-quarter cryptocurrency revenue triples
Although Robinhood (Nasdaq: HOOD) faces possible regulatory setbacks, its cryptocurrency trading revenue in the first three months of 2024 rose 232% to $126 million. The increase was driven by notional cryptocurrency trading volume in the quarter, which reached $36 billion, up 224%.
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Over the three months, the U.S. brokerage’s overall quarterly revenue increased 40% year-over-year to $618 million. Of the total, transaction-based revenue increased 59% to $329 million, primarily driven by cryptocurrencies. Options trading revenue also increased 16% to $154 million, while equity revenue of $39 million increased 44%.
In addition to transaction-based revenue, Robin Hood it also generated $254 million in net interest, an increase of 22%, and $35 million, an increase of 35%, from other sources, including subscriptions.
As demand for cryptocurrencies on the platform has soared, the The SEC issued a Wells warning to Robinhood regarding its cryptocurrency offerings, indicating possible enforcement actions against the brokerage.
A profitable quarter
The quarter was also profitable for the brokerage, as it generated net income of $157 million, or diluted earnings per share (EPS) of $0.18, compared to a loss of $511 million in the corresponding quarter of the prior year. Interestingly, the broker managed to reduce operating expenses by 52% year-on-year to $460 million.
“We delivered significant revenue growth and margin expansion in the first quarter as we remain focused on driving another year of profitable growth in 2024,” Robinhood CFO Jason Warnick said. “We set records for quarterly revenue, net income and EPS in the first quarter, even as we ramped up our investments in marketing and growth.”
In the three months, assets under custody on the platform increased by 65% to $129.6 billion. Net deposits also jumped to $11.2 billion, growing at an annualized rate of 44% compared to the end of the previous quarter.
Looking at the current quarter’s performance, Robinhood CEO Vlad Tenev said: “The second quarter started well with April being our highest month of the year for net deposits and gold subscriber growth , and we are excited to see strong growth in interest from over 1 million customers in our Robinhood Gold Card.”
Although Robinhood (Nasdaq: HOOD) faces possible regulatory setbacks, its cryptocurrency trading revenue in the first three months of 2024 rose 232% to $126 million. The increase was driven by notional cryptocurrency trading volume in the quarter, which reached $36 billion, up 224%.
Over the three months, the U.S. brokerage’s overall quarterly revenue increased 40% year-over-year to $618 million. Of the total, transaction-based revenue increased 59% to $329 million, primarily driven by cryptocurrencies. Revenue from options trading also increased 16% to $154 million, while equity revenue of $39 million increased 44%.
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In addition to transaction-based revenue, Robin Hood it also generated $254 million in net interest, an increase of 22%, and $35 million, an increase of 35%, from other sources, including subscriptions.
As demand for cryptocurrencies on the platform has soared, the The SEC issued a Wells warning to Robinhood regarding its cryptocurrency offerings, indicating possible enforcement actions against the brokerage.
A profitable quarter
The quarter was also profitable for the brokerage, as it generated net income of $157 million, or diluted earnings per share (EPS) of $0.18, compared to a loss of $511 million in the corresponding quarter of the prior year. Interestingly, the broker managed to reduce operating expenses by 52% year-on-year to $460 million.
“We delivered significant revenue growth and margin expansion in the first quarter as we remain focused on driving another year of profitable growth in 2024,” Robinhood CFO Jason Warnick said. “We set records for quarterly revenue, net income and EPS in the first quarter, even as we ramped up our investments in marketing and growth.”
In the three months, assets under custody on the platform increased by 65% to $129.6 billion. Net deposits also jumped to $11.2 billion, growing at an annualized rate of 44% compared to the end of the previous quarter.
Looking at the current quarter’s performance, Robinhood CEO Vlad Tenev said: “The second quarter started well with April being our highest month of the year for net deposits and gold subscriber growth , and we are excited to see strong growth in interest from over 1 million customers in our Robinhood Gold Card.”