Robinhood Records 161% Crypto Revenue Growth In Q2

Robinhood Markets, Inc. reported substantial growth in its second-quarter earnings, with a 161% increase in cryptocurrency transaction revenues, reaching $81 million. This marks double the transaction revenues generated from equities in the same quarter.

Robinhood 161% Crypto Revenue Growth In Q2

Robinhood, a commission-free brokerage firm, has revealed that its crypto transaction revenue almost tripled in Q2 of 2024. The company said that its crypto transaction revenues increased by 161%, amounting to $81 million in the same period of the previous year.

Consequently, this figure is also almost double the transaction revenues from equities in the same quarter. The company’s total revenue for the quarter increased by 40% as compared to the same quarter last year to $682 million.

Options trading remains to be Robinhood’s biggest source of revenue, earning $327 million in the second quarter. Also, the digital asset “notional” trading volume rose by 137% YoY to $21.5 billion, but this was down from the $36 billion seen in Q1 of 2024.

Boost from Bitstamp Acquisition

In June, the American brokerage service Robinhood entered the cryptocurrency exchange market by acquiring Bitstamp, a global scaled crypto exchange. Bitstamp has more than 50 active licenses and registrations in different jurisdictions such as the EU, UK, US, and Asia. 

Nevertheless, it is still uncertain what effects this acquisition has on Robinhood’s financial performance in the short term.

The company also stated that the number of monthly active users rose to 11.8 million, a 9% growth compared to the previous year. Net income soared to $188 million, a 652% increase, and earnings per share rose to $0.21, which was a 600% surge.

Trading Volumes and User Metrics

The company’s transaction-based revenue increased by 69% to $327 million mainly due to a 43% rise in options revenue and the increase in cryptocurrency revenue. Also, the net interest income of Robinhood rose 22% due to increased securities lending and short-term interest rate.

Similarly, the premium subscription service Robinhood Gold saw a 61% jump in subscribers, touching 2 million. The company also posted the record high of the net deposits of $132 billion with the yearly compounded growth rate of 41%.

Despite the impressive growth figures, Robinhood’s shares (HOOD) decreased by 0.52% in after-hours trading following the earnings announcement. The company’s stock was reported at $17.12 at market close, showing a slight decline in after-hours trading.

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