Robinhood financial results boosted by crypto trading
Robinhood Markets (NASDAQ:HOOD), operator of the stock and Bitcoin trading app, saw its shares on the rise in Wednesday’s late deals after reporting upbeat financials for its first quarter.
The performance comes amidst a recent revival in Bitcoin and cryptocurrency markets, as well as soaring investor interest in the top-tier tech stocks.
These stocks, the so-called ‘Magnificent Seven’, comprise Nvidia, Meta, Tesla, Amazon, Google-parent Alphabet, Microsoft and Apple.
At the same time US stock benchmarks have also been pushing record highs, and the gold price has seen all-time record levels.
It is against this backdrop that Robinhood, an app that’s very popular with ‘retail’ investors, reported record quarterly revenue of $618 million, with crypto trading accounting for some $126 million of the tally.
It reported net income of $157 million for the quarter, versus a $511 million loss for the same period a year ago. On a per share basis, it equated to 18 cents.
The company comfortably beat Wall Street forecasts for the quarter, which were pitched at $549 million for group revenue and just 6 cents per share earnings.
Chief executive Vlad Tenev, in a statement, struck a bullish tone.
“We continued to aggressively execute on our product roadmap in the first quarter, leading to all-time highs for net deposits and gold subscribers," Tenev said,
"The second quarter is off to a strong start with April being our highest month of the year for net deposits and gold subscriber growth, and we’re excited to see strong interest from over 1 million customers in our Robinhood gold card."
Robinhood chief financial officer Jason Warnick, meanwhile, commented: “"We delivered significant revenue growth and margin expansion in Q1 as we remain focused on driving another year of profitable growth in 2024.
“We set records for quarterly revenues, net income, and EPS, even as we stepped up our marketing and growth investments."
In New York, Robinhood stock was up 3.75% in reaction to the upbeat financials changing hands at $18.52 in 'afterhours' trading.
