Robinhood Reports Strong Q3 Earnings

Robinhood (ticker HOOD), the commission-free brokerage firm, reported its third-quarter earnings on Wednesday, showcasing a continued appetite for cryptocurrency among retail traders, despite a slowdown in trading volume throughout the year.

Key Highlights:

• Crypto Trading Volumes: Grew 112% year-over-year to $14.4 billion, although it dropped from $21.5 billion in Q2 and $36 billion in Q1 this year.
• Equity Trading Volumes: Increased 65% to $286.2 billion.
• Transaction-Based Revenues: Increased 72% from last year to $319 million:
  • Cryptocurrency trading: $61 million (up 165%)
  • Options trading: $202 million (up 63%)
  • Equities: $37 million (up 37%)
• Assets Under Custody (AUC): Rose 76% YoY to $152.2 billion, driven by net deposits and increased valuations.
• Earnings Per Share: Reported at $0.17, a turnaround from a loss of $0.09 per share last year.
• Quarterly Revenue: Came in at $637 million, slightly below the expected $650.67 million.

CFO Jason Warnick expressed optimism about the company's trajectory, stating, "Q3 was another strong quarter, as we drove 36% year-over-year revenue growth and dropped most of that to the bottom line."

Looking ahead to 2024, the company aims to deliver continuous profitable growth.

Future Plans:

Robinhood is also expanding its bitcoin and ether support to futures products and recently introduced event contracts for users to bet on the outcome of the U.S. presidential election.