Robinhood smashed expectations in the final quarter of 2024, raking in over $1 billion in revenue. This easily surpassed analyst predictions of around $940 million.
Crypto Trading: The Big Winner
A massive 700% surge in crypto trading volume was the key driver of this success, contributing a whopping $358 million to the total. This surge coincided with the US election and Bitcoin’s climb past the $100,000 mark. The excitement surrounding these events clearly boosted trading activity.
This strong finish is a welcome change after a weaker third quarter, which saw a significant revenue drop.
More Than Just Crypto
While crypto trading was a major factor, overall transaction-based revenue jumped 236% year-over-year to $672 million, showing a broader increase in trading activity.
Expanding Horizons
Robinhood didn’t just benefit from the market; they actively expanded their offerings. They added seven new crypto tokens for US customers and launched ETH staking services in the EU. They also expanded into Spain, complying with new EU regulations. The addition of viral assets like the TRUMP coin further broadened their appeal. CEO Vlad Tenev highlighted the company’s focus on product development in 2024, aiming to provide secure digital asset trading.
A Winning Streak
This strong Q4 performance extends Robinhood’s streak of profitable quarters to five. Earnings per share soared, and total assets under custody increased by a massive 88% to $193 billion, fueled by growth in both digital assets and equities. Equity trading value also saw a huge 154% year-over-year increase, reaching $423 billion. All this adds up to Robinhood ending the year as one of the top-performing retail trading platforms.
