Robinhood Shares Surge 15.3% Following Strong Earnings Report
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Robinhood (Nasdaq: HOOD) saw its share price rise by 15.3 percent after regular trading hours. The trading company had reported revenue of $1.01 billion, which was much higher than the expected $849.06 million. It also earned $1.01 per share, much more than the expected $0.32.
The company said its net revenue for the quarter had grown by 115 percent compared to the same period last year. It explained that cryptocurrency trading had helped the most, bringing in $358 million. This amount was part of the total $672 million made from transaction-based earnings, which had increased by 200 percent.
Robinhood’s Revenue Growth Driven By Crypto Trading And Expanding Services
Robinhood also reported that earnings from crypto trading had grown by more than 700 percent. It even passed the revenue from options trading, which had always been the main earner before.
Options trading brought in $222 million, an increase of 83 percent. The company added that demand for stock trading had also risen by 144 percent, though it had only earned $61 million.
The company recently expanded its services in the United Kingdom by offering options trading. It was also working on adding futures trading in the United States and growing its crypto services around the world.
Apart from transaction-based earnings, Robinhood reported that it had earned $296 million from interest income, 25 percent more than before. It explained that this had come from growth in interest-earning assets. It also made another $46 million from customer subscriptions.
The company noted that its strong earnings had turned into profit. It stated that net income had reached $916 million, ten times more than before. A tax benefit of $369 million had helped with this gain. Another $55 million had come from a reversed accrual as part of a regulatory settlement.
Robinhood Achieves Record Growth In Earnings
Jason Warnick, Robinhood’s Chief Financial Officer, said that the last quarter of the year had set new records, closing a strong year in 2024. The high earnings and profits had pushed the company’s share price up.
After-hours trading saw HOOD shares climb by 15.31 percent, reaching a record high of $64.47 per share. Since the start of the year, the company’s share price had risen by about 42 percent, and over the past year, it had grown by more than 365 percent.
Robinhood reported that it had improved in other areas as well. The number of customers with funded accounts had risen by 8 percent to 25.2 million, while the number of investment accounts had increased by 10 percent to 26.2 million.
The company also noted that total deposits had reached $16.1 billion by the end of the quarter. It added that average earnings per user had grown by 102 percent to $164.
Vlad Tenev, Chief Executive Officer and Co-Founder, said that the company saw a huge chance to help more people around the world buy, sell, or hold financial assets through Robinhood.
