Robinhood Posts Record Results on Robust Cryptocurrency Trading

Trending 1 month ago

Key Takeaways

  • Robinhood posted grounds profit and income connected booming request for cryptocurrency trading.
  • The online brokerage besides benefited from nan soaring value of gold.
  • Net deposits were astatine an all-time precocious arsenic well.

Shares of Robinhood Markets (HOOD) roseate successful intraday trading Thursday arsenic nan online brokerage posted grounds profits and income connected soaring cryptocurrency trading.

Robinhood reported first-quarter earnings per stock (EPS) of $0.18, 3 times analysts’ estimates compiled by Visible Alpha. Revenue jumped 40% year-over-year to $618 million, besides much than forecasts.

The institution said transaction-based gross skyrocketed 59% to $329 million, “primarily driven by cryptocurrencies revenue,” which soared 232% to $126 million.

Golden Gains

Record-setting prices for golden drove request arsenic well, arsenic Robinhood’s golden subscribers accrued 42% to a caller precocious of 1.7 million.

Net deposits besides group a grounds astatine $11.2 billion. The institution noted that it had “net affirmative transfers from each awesome incumbent brokerage firm.”

Funded customers climbed 810,000 to 23.9 million, and mean gross per personification (ARPU) added 35% to $104.

Co-founder and Chief Executive Officer (CEO) Vlad Tenev gave a affirmative outlook for nan existent quarter, explaining that April was nan highest period of nan twelvemonth for nett deposits and golden subscriber growth. He besides said that said that much than 1 cardinal customers had joined nan waitlist for Robinhood's new gold in installments card, which is for its premium "gold" subscribers and offers 3% rate back

One imaginable bump successful nan roadworthy is simply a Securities and Exchange Commission (SEC) investigation into nan company’s cryptocurrency business unveiled this week. Robinhood main lawyer Dan Gallagher based on that nan institution is not violating immoderate laws, calling nan SEC’s lawsuit “weak.”

Robinhood shares were up astir 1% to $18.04 arsenic of 10:08 a.m. ET Thursday. They person added much than 40% of their worth this year.

More
Source investopedia
investopedia