A 700% year on year increase in crypto revenue was the primary factor driving Robinhood’s record setting $916 million net income, which pushed shares up 17% in after-hours trading.
Summary
Robinhood’s Q4 net income surpassed consensus projections by 700%, with a net income of $916 million. The company’s transaction-based sales reached $672 million, a 200% increase year-over-year. Crypto revenue reached $358 million, accounting for over half of the company’s proceeds. The volume of crypto trading surged by 450% year-over-year, reaching $71 billion. Robinhood’s CEO, Vlad Tenev, plans to extend its cryptocurrency offerings to real-world assets and consider integrating crypto staking in the US.
In after-hours trading, Robinhood shares increased by 17% as the company’s results for the fourth quarter exceeded the consensus projections and cryptocurrency revenue increased by 700% year-on-year.
Robinhood’s net income of $916 million, which was disclosed in its results announcement on February 12th, was the company’s sixth straight successful quarter, surpassing the consensus projections by significantly more than nine percent.
Robinhood’s transaction-based sales hit $672 million, which climbed by more than 200% year over year. Crypto revenue reached $358 million, accounting for more than half of the company’s proceeds. The amount of cryptocurrency traded rose by more than 450% year-over-year, reaching $71 billion.
According to Jason Warnick, the chief financial officer of Robinhood, “Q4 was a record-breaking quarter that wraps up a record-setting year in 2024.” Warnick made this statement by referring to the company’s $1 billion in revenue, $16 billion in net deposits, and an 88% year-on-year rise in assets under custody to $193 billion.
The value of crypto assets held in custody also climbed by 75% quarter-on-quarter, reaching $35 million. Additionally, the volume of crypto trading surged by around fivefold when compared to the quarters of 2023 and 2024.
Due in large part to the election victory of Donald Trump for President of the United States and the rise in market prices, the overall market saw a surge in trading activity during the fourth quarter.
The stock of Robinhood (HOOD) increased by 4.82% during the trading session on February 12 to reach $55.90, and then it increased by an additional 17.1% when the company announced its quarterly results after the market closed, according to data from Google Finance.
During an earnings call, the Chief Executive Officer of Robinhood, Vlad Tenev, said that the firm would soon be looking to extend its cryptocurrency offers into the market for real-world assets.
“Creating a list of crypto asset securities that will enable us to tokenize both public and private companies.”
Tenev said that Robinhood is also considering integrating crypto staking in the United States. He emphasized that there are no “technical impediments” that are keeping the company from doing so. Additionally, he mentioned that Robinhood’s staking services have been quite successful in Europe.
As part of a transaction for $200 million, Robinhood reached an agreement in June of last year to purchase the Bitstamp cryptocurrency exchange. This would allow the company to provide services to institutional investors in the United States.
Also Read: The SEC has fined Robinhood $45 million for regulatory violations
Robinhood has agreed to pay $45 million in civil penalties for violating securities laws, including cybersecurity flaws and non-compliance with abusive short-selling tactics. The SEC found the platform had unfixed cybersecurity flaws and failed to adhere to regulations. The settlement establishes a standard for online trading platforms to follow securities regulations…[Read More]
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