Online trading platform Robinhood has reported impressive numbers for the first quarter of 2024. The company disclosed a staggering $36 billion in crypto notional trading volume, marking a significant 224% increase compared to the previous year.
Not only did Robinhood see growth in trading volume, but the firm also reported record net revenues of $618 million, a 40% increase year over year. Out of the total revenues, $329 million was derived from transaction revenues, with $126 million coming from its crypto business alone – a notable 232% increase year over year.
In terms of net income, Robinhood reported a first-quarter net income of $157 million, a stark contrast to the net loss of $511 million during the same period in the previous year. The company’s diluted earnings per share (EPS) stood at $0.18 for the quarter.
Additionally, Robinhood disclosed that it holds $26.2 billion in assets related to user cryptocurrencies safeguarding obligation, with the same amount under the liabilities and stockholder equity category. The firm’s latest results exceeded external expectations, with analysts anticipating $549 million in first-quarter revenue and diluted EPS of $0.06.
Despite these positive figures, Robinhood executives addressed the recent Wells Notice issued against the firm’s crypto unit by the US Securities and Exchange Commission (SEC) during the earnings call. The notice signifies that SEC staff intend to recommend enforcement action against Robinhood Crypto.
In response to investor inquiries, executives emphasized the company’s commitment to a “conservative approach” to listings and products with regulatory considerations. They also stressed their belief that consumers should have access to crypto as an asset class. Robinhood has previously stated its efforts to comply with regulations and register with the SEC, and reassured users that the notice will not impact their services.
On the stock market front, the price of Robinhood stock (HOOD) experienced a 0.78% dip on May 8 but rose by 3.64% after hours. These developments indicate a strong overall performance by Robinhood in the crypto trading sector.
