Robinhood’s Crypto Revenue Surpasses Options in Q4 2024

The share price of Robinhood (Nasdaq: HOOD) jumped by 15.3 per cent after hours, as the trading platform reported revenue of $1.01 billion, compared to a consensus estimate of $849.06 million. Its earnings per share at $1.01 were also significantly higher than the expectation of $0.32.

Crypto Pushed Ahead

The trading platform's quarterly net revenue increased by 115 per cent year over year. Interestingly, cryptocurrency revenue of $358 million contributed the most to its total transaction-based revenue of $672 million, which jumped 200 per cent.

The crypto revenue jumped by over 700 per cent and even surpassed the platform’s options revenue of $222 million, which, until now, was the primary revenue driver. However, options revenue also went up by 83 per cent. The demand for equities also followed the trend, jumping 144 per cent, but brought in only $61 million.

Recently, the American company expanded its services in the United Kingdom by launching options there. It is also rolling out futures trading in its home turf while expanding crypto offerings globally.

Other than transaction-based revenue, the California-based company generated $296 million, an increase of 25 per cent, from interest income. According to the official announcement, this gain was driven by the growth in interest-earning assets. It generated another $46 million from subscriptions.

Robinhood was also able to convert the strong revenue into income. Its net income increased tenfold to $916 million, benefiting from a $369 million deferred tax benefit. Another $55 million was derived from a reversal of an accrual as part of a regulatory settlement.

“Q4 was a record-breaking quarter that caps off a record-setting year in 2024,” said Jason Warnick, Chief Financial Officer of Robinhood.

The record-breaking revenue and profit pushed the platform's share price significantly higher. In after-hours trading, HOOD shares jumped by 15.31 per cent to an all-time high of $64.47 per share. Year to date, the company's share price jumped by about 42 per cent, while the return in the past year was above 365 per cent.

Customer Metrics Improved Significantly

Beyond the financials, the company also significantly improved its other customer-centric metrics. The number of funded customers on the platform increased by 8 per cent to 25.2 million, while the number of investment accounts jumped by 10 per cent to 26.2 million.

Further, the net deposit of the platform touched $16.1 billion at the end of the quarter. The platform also improved the average revenue per user by 102 per cent to $164.

“We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood,” said Vlad Tenev, CEO and Co-Founder of Robinhood.