2024-10-31
Robinhood's Q3 2024 earnings report revealed a significant surge in crypto
trading volume, reaching $14.4 billion, which is a 114% increase year-over-year
from Q3 2023. Despite this impressive growth, the figure represents a decline
from Q2 2024, where the trading volume was $21.5 billion.
Robinhood Markets Inc. reported its Q3 2024 earnings, indicating strong
growth across several key metrics:
• Total Revenue: $637
million, a 36% increase year-over-year.
• Earnings Per Share (EPS): $0.17,
compared to a loss of $0.09 in the same quarter last year.
• Transaction-Based Revenues: $319 million,
up 72% year-over-year, driven primarily by options and cryptocurrency trading.
• Net Interest Revenues: $274
million, a 9% increase year-over-year.
• Net Income: $150 million,
reversing a net loss from the previous year.
• Assets Under Custody: $152.2
billion, a 76% increase year-over-year.
• Gold Subscriptions: Reached a
record 2.2 million subscribers, with annualized recurring revenue over $110
million.
Robinhood reported quarterly revenue of
$637 million, which missed the market expectation of $650.67 million. This
makes shares of Robinhood Markets (HOOD) fell 15% on October 31, 2024.
Another factor is crypto trading volume
dropped. Although Robinhood’s crypto trading volumes grew 112% year-over-year
to $14.4 billion, while equity trading volumes increased 65% to $286.2 billion on Q3
2024.
But, crypto trading volume has dropped
from $21.5 billion in the second quarter and $36 billion in the first quarter
of this year.
Robinhood also introduced new products
like Robinhood Legend and announced plans to expand its trading options with
futures and index options. The company remains optimistic about its future
prospects, focusing on product innovation and international expansion.
Robinhood's continued focus on crypto,
along with its expansion into new sectors like European stablecoins and
political prediction markets, shows a diversified strategy. Overall, looking
into Robinhood's future, it is still a growth stock.
