2024-08-08
Robinhood Markets, Inc. announced second quarter 2024 results on August
7, 2024.
Robinhood Markets, Inc. reported strong financial results for Q2 2024, showcasing significant growth and record-breaking figures. The company achieved a revenue of $682 million, a 40% increase year-over-year, which surpassed analyst expectations of $631.82 million.
Total revenue last year on Q2, 2023, was $486 million. Additionally,
the earnings per share (EPS) were $0.21, exceeding the anticipated $0.15.
The company’s net income surged to $188 million, a
substantial rise from $25 million in the same quarter of the previous year.
Operating expenses increased by 6% to $493 million due to higher marketing and
growth investments. Robinhood also saw growth in transaction-based revenues,
which increased by 69% year-over-year, driven by higher activity in options,
cryptocurrencies, and equities.
Other notable achievements include a 22% rise in net interest
revenues and a 19% increase in other revenues, primarily from Gold subscription
fees. The number of funded customers grew by 1 million to 24.2 million, while
investment accounts increased to 24.8 million. Assets under custody also saw a
57% year-over-year increase, reaching $139.7 billion.
Strategically, Robinhood made significant moves by acquiring
Bitstamp, a global crypto exchange, and Pluto Capital Inc., an AI-powered
investment research platform. The company also launched industry-leading margin
rates and announced a $1 billion share repurchase program.
Overall, these results reflect Robinhood’s robust growth and
expanding customer base, positioning it well for future advancements and market
expansion.
Robinhood Markets, Inc. operates in several key business
areas, primarily focusing on providing financial services through its platform.
Here are the main businesses of Robinhood:
1. Brokerage Services:
o Stock Trading: Robinhood offers commission-free
trading of stocks and exchange-traded funds (ETFs).
o Options Trading: The platform allows users to trade
options with no commission fees.
o Cryptocurrency Trading: Users can trade various
cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin through the platform.
2. Cash Management:
o Cash Management Accounts: Robinhood provides cash management
accounts with features like interest on uninvested cash and access to ATMs.
3. Margin Trading:
o Robinhood Gold: This premium service offers users
the ability to trade on margin, extended trading hours, and research reports
for a monthly fee.
4. Financial Education:
o Robinhood Learn: The platform includes educational
resources and tools designed to help users understand financial concepts and
make informed investing decisions.
5. Market Data and Research:
o Robinhood offers real-time market
data, news, and analysis tools to help users track and understand market
movements.
6. Corporate Actions and Services:
o The company also provides services
related to corporate actions, such as dividends, stock splits, and other events
affecting securities held by users.
7. Acquisitions and Strategic
Investments:
o Robinhood has made strategic
acquisitions such as Bitstamp, a cryptocurrency exchange, and Pluto Capital
Inc., an AI-powered investment research platform.
Robinhood’s revenue between 2021 and 2024
2021 Revenue: $1.82 billion
2022 Revenue: $1.36 billion
2023 Revenue: $1.87 billion
2024 Q1 Revenue: $618 million and Q2 Revenue: $682 million
Robinhood is a growth stock, it currently valued at $15.05
billion.
