Robinhood Reports 112% Jump in Crypto Trading Volume, but There’s a Catch

Robinhood has reported a 112% year-over-year enhance in cryptocurrency buying and selling quantity, reaching $14.4 billion within the third quarter of 2024.

Nonetheless, this surge comes amid a decline in buying and selling exercise in comparison with earlier within the 12 months, with volumes peaking at $36 billion within the first quarter and dropping to $21.5 billion within the second quarter.

Outcomes Fall Wanting Analyst Expectations

Regardless of this slowdown in momentum in 2024, the buying and selling platform skilled progress in its transaction-based income. The report signifies that revenue elevated by 72% in comparison with the earlier 12 months, reaching $319 million. Of this, cryptocurrency buying and selling accounted for $61 million, representing a 165% enhance in comparison with final 12 months. Nonetheless, this determine was down from the $81 million generated within the earlier quarter.

General, the corporate reported a web revenue of $150 million and complete income of $637 million for the third quarter. Nonetheless, these outcomes fell in need of analysts’ expectations.

The reported earnings per share (EPS) of $0.17 fell in need of the Zacks Consensus Estimate of $0.18, whereas complete income was 3.6% beneath the anticipated $661.2 million.

Different elements of Robinhood’s enterprise additionally confirmed sturdy efficiency. Choices buying and selling revenues surged to $202 million, up 63% from the identical interval final 12 months, and equities buying and selling introduced in $37 million, reflecting a 37% enhance.

The corporate additionally revealed an increase in its Property Beneath Custody (AUC). The metric grew by 76% year-over-year to $152.2 billion, fueled by web deposits from customers and elevated valuations of shares and cryptocurrencies.

Robinhood Executives Touch upon Q3 Outcomes

Vlad Tenev, CEO and co-founder of Robinhood expressed his pleasure within the outcomes, stating that they had been a testomony to how properly the corporate’s “product engine is buzzing.”

Additional, he highlighted current initiatives such because the launch of Robinhood Legend, a brand new desktop platform, and the upcoming introduction of index choices, futures, and a realized revenue and loss software.

Chief Monetary Officer Jason Warnick famous the quarter’s total power, pointing to 36% year-over-year income progress that largely contributed to the underside line.

Since launching its cryptocurrency unit in February 2018, Robinhood has expanded its choices by numerous partnerships and initiatives.

Initially beginning with Bitcoin and Ethereum buying and selling, the inventory brokerage agency has since broadened its choices to incorporate Litecoin, Uniswap, Avalanche, Chainlink, and numerous different tokens.