- Robinhood Markets Inc. posted its second straight quarterly profit in the first quarter of 2024.
- Higher interest rates and increased cryptocurrency trading fueled Robinhood’s revenue growth.
- Robinhood’s net income totaled $157 million or $0.18 per share, beating analyst estimates.
Robinhood Markets Inc posted its second straight quarterly profit Wednesday as higher interest rates and cryptocurrency trading fueled revenue growth.
Financial Highlights
Net income for the first quarter totaled $157 million or 18 cents a share, beating the 6-cent average estimate of analysts surveyed by Bloomberg. That compares with a loss of $511 million or 57 cents a year earlier.
Driving Growth Factors
Higher interest rates and a surge in cryptocurrency trading revenue have driven Robinhood’s growth. Crypto revenue jumped 232% to $54 million in the quarter. Overall revenue increased 14% to $299 million.
Looking Ahead
Robinhood expects seasonal headwinds and trading activity to moderate. But higher interest rates could continue to boost revenue. The company remains focused on building products that delight customers.
About Robinhood
Robinhood is a financial services company known for pioneering commission-free trading. The app makes investing accessible to everyone. Robinhood allows users to invest in stocks, ETFs, options and cryptocurrencies. The company went public in July 2021.
Conclusion
Robinhood’s latest earnings results beat expectations, driven by crypto trading growth. While trading activity may cool off, higher rates provide tailwinds. Robinhood aims to keep improving its platform to serve retail investors.
