Robinhood Reports $43 Million in Cryptocurrency Revenue
Date: 2024-02-14 Author: Dima Zakharov Categories: BUSINESS
Revenue Surge from Cryptocurrency Transactions
Robinhood, the commission-free trading app, has announced its earnings for the fourth quarter, showcasing a remarkable surge in revenue driven by cryptocurrency transactions. According to reports, the company generated $43 million in revenue from crypto transactions alone.
Increased Revenue and User Base
The company's overall transaction-based revenue grew by 8% year-over-year to reach $200 million. Despite a 4% decline in monthly active users to 10.9 million, Robinhood saw a substantial increase in assets under custody, which rose to $102.6 billion, marking a 65% surge compared to the same period last year.
Global Expansion Plans
Robinhood also hinted at its plans for further expanding its customer base beyond the United States after successfully launching in the UK and EU markets. The company aims to explore opportunities for growth in the international market following its expansion into the European Union with the launch of a brokerage waitlist and cryptocurrency offerings.
Exceeding Wall Street Expectations
The company's performance surpassed Wall Street expectations, with earnings per share coming in at $0.03, outperforming the anticipated loss of one cent per share. Robinhood reported revenue of $471 million, surpassing expectations of $457 million.
Optimistic Outlook for 2024
CEO Vlad Tenev expressed optimism about the company's future, highlighting a strong start to 2024 with increased client funding and net deposits in the first half of the first quarter compared to the entire fourth quarter of 2023.
Continued Innovation in Cryptocurrency
Despite a previous decline in cryptocurrency revenue, Robinhood remains committed to innovation and enhancing its cryptocurrency offerings. A recent partnership announcement with MetaMask indicates Robinhood's ongoing efforts to provide users with seamless access to cryptocurrency markets.
Looking Forward
With its robust financial performance and ambitious growth plans, Robinhood continues to position itself as a key player in the cryptocurrency trading landscape, signaling further developments and innovations in the coming months.
