- Both the top and bottom lines of Robinhood’s Q1 earnings were surpassed.
- To date, $36 billion has been traded in cryptocurrency, a 224% year-over-year rise.
- The SEC has slapped the company’s Robinhood Crpyto business with a Wells Notice.
The commission-free brokerage company Robinhood surpassed expectations on Wednesday afternoon with its first-quarter earnings report. The U.S. Securities and Exchange Commission’s Wells Notice to the business’s cryptocurrency unit, Robinhood Crypto, earlier last week drew criticism for the company.
According to Robinhood, the SEC staff has decided to recommend an enforcement action against the crypto section on the grounds of possible securities violations. The business announced last year that it had been served with an SEC investigative subpoena concerning cryptocurrency listings.
About a year after Robinhood Wallet was made available to iOS users worldwide, Robinhood released its bitcoin wallet for Android users in March, according to a prior story from The Block.
The financial results of Robinhood seem to have benefited from the rollout.
Revenue from transactions climbed by 59% year over year to $329 million. According to Robinhood, the main drivers of this increase were revenue from cryptocurrency (up 232% to $126 million) and options ($154 million, up 16%).
According to Robinhood, rising equity and cryptocurrency valuations were the main causes of the 65% growth in Assets Under Custody (AUC) to $129.6 billion.
Notably, notional trading volumes for cryptocurrencies rose 224% year over year to $36 billion, a significantly higher rate than the 40% increase for notional trading volumes for equities, even though the latter were at a considerably higher amount of $225 billion.
According to a news statement from CFO Jason Warnick, “We delivered significant revenue growth and margin expansion in Q1 as we remain focused on driving another year of profitable growth in 2024.” We established records for net income, EPS, and quarterly revenues in Q1.
In comparison to a net deficit of $511 million during the same quarter previous year, net income increased to $157 million. While revenue of $618 million exceeded the projection of $549 million, earnings per share of 18 cents topped the analyst consensus estimate of 6 cents.
After hours, Robinhood’s shares increased by 6% to $18.82 per share. To date, the stock has increased by 44%.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
