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Robinhood Sees Triple Crypto Revenue in Q1 2024

Robinhood’s first-quarter cryptocurrency revenue soared by 232% to $126 million despite potential regulatory hurdles. The company’s national crypto trading volume surged to $36 billion, a 224% increase. In the same period, Robinhood’s total quarterly revenue went up 40% year-over-year, hitting $618 million. 

The surge was mainly due to a 59% increase in transaction-based revenue to $329 million, with cryptocurrencies leading the charge. Additionally, income from options trading rose by 16% to $154 million, and equities revenue grew 44% to $39 million. 

Robinhood also saw a 22% increase in net interest revenue to $254 million and a 35% rise in other revenues to $35 million, which includes subscription services.

A Profitable Quarter

Despite booming crypto trading, Robinhood received a Wells Notice from the SEC, hinting at a potential enforcement action regarding its cryptocurrency offerings. The broker also reported a profitable quarter, with net income reaching $157 million, or $0.18 per diluted share, a stark contrast to the $511 million loss in the same quarter last year. 

Operating expenses were cut by 52% year-over-year to $460 million. “We’ve achieved record-breaking growth in revenue, net income, and EPS in Q1, while increasing our marketing and growth efforts,” said Jason Warnick, CFO of Robinhood.

In Q1, the assets under Robinhood’s management grew by 65% to $129.6 billion. Net deposits saw a significant upswing to $11.2 billion, marking a 44% annualized growth rate from the previous quarter’s end. 

Vlad Tenev, Robinhood’s CEO, shared optimism about the ongoing quarter, highlighting April as the year’s peak month for Net Deposits and Gold Subscriber growth. He also noted the enthusiasm from over 1 million customers for the Robinhood Gold Card.

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