Robinhood Nets $618 Million Revenues, Beats Market Projections

Robinhood Markets Inc. released better-than-expected Q1 2024 earnings posting increased revenues amid surging positive sentiments. In a May 8 release, the company disclosed its first quarter financials with increased figures. 

According to the release, Robinhood saw record revenues of $618 million, a 40% year-on-year increase with a GAAP Diluted EPS of $0.18. The platform also recorded a surge in users as transactions pointed upwards. Transaction-based revenues stood at $329 million in the last three months, a 59% year-over-year increase. 

Per the statement, transaction revenues were primarily pushed by crypto revenue of $128 million, a massive 232% jump while options and equities revenues stood at $154 million and $39 million respectively. Both sectors saw upticks of 16% and 44% respectively. 

Robinhood’s net income increased to $157 million year-over-year compared to a loss of $511 million posted in Q1 2023. Operating expenses also decreased 52% year-over-year. 

Robinhood Looks Toward Profitable 2024

The company stressed its roadmap as it recorded all-time highs in net deposits and gold subscribers. The second quarter kicked off with new bullish figures for net deposits and gold subscribers pointing to strong interest this year. 

Jason Warnick, Robinhood’s Chief Financial Officer added that the firm set records for quarterly revenues as multiple factors grow. 

“We delivered significant revenue growth and margin expansion in Q1 as we remain focused on driving another year of profitable growth in 2024. In Q1, we set records for quarterly revenues, net income, and EPS, even as we stepped up our marketing and growth investments.” 

Crypto Firms Maintain Pressure

The first three months of the year saw an uptick in cryptocurrency prices with Bitcoin hitting an all-time high. This dominated financial circles with crypto stocks notching an uptick in value. Coinbase also posted better-than-expected earnings in Q1 on the back of increased market performance. 

For Robinhood, gold subscribers hit 1.7 million while trading volumes also hit new highs. 

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