A meteoric rise in cryptocurrency trading helped boost online brokerage Robinhood Market’s (HOOD) latest financial results.
The company, whose stock trading app is popular with retail investors, reported fourth-quarter 2024 earnings per share (EPS) of $1.01 U.S., which blew past consensus estimates of $0.42 U.S.
Revenue in the period reached $1.01 billion U.S., which surpassed Wall Street expectations of $934 million U.S. Sales were up 115% from a year earlier.
Management said the strong results were driven by a surge in investor activity, notably around the trading of cryptocurrencies such as Bitcoin (BTC).
The company said that revenue from trading cryptocurrencies rose more than 700% in Q4 2024, versus a 144% increase in revenue generated from trading stocks.
Robinhood’s Chief Financial Officer (CFO) Jason Warnick called the results a “tremendous crypto quarter.”
Robinhood executives added on their earnings call with analysts and media that they plan to further expand their cryptocurrency offerings this year due to strong demand.
The company is now in the process of acquiring cryptocurrency exchange Bitstamp, which it says will further boost its crypto services.
Robinhood also plans to allow investors to launch what it calls an “event contracts platform” that will allow customers to place trades and bets on the outcome of events such as elections.
Management noted that investors are putting more money into their brokerage accounts, adding a record $16 billion U.S. in net deposits during the final quarter of last year.
It should be noted that the company offers matching bonuses to incentivize customers to transfer money and accounts to Robinhood.
The stock of Robinhood is up 12% following news of its latest financial results and has risen 372% over the past 12 months to trade at $55.91 U.S. per share.
