Robinhood Markets Inc. reported a significant increase in revenue for the fourth quarter, more than doubling its earnings as the surge in cryptocurrency trading helped fuel its growth, particularly around the U.S. presidential election.
Revenue and Crypto Gains Exceed Expectations
The company generated $1.01 billion in revenue, surpassing Wall Street analysts’ estimates of $940.8 million for the quarter. Cryptocurrency trading played a major role in the boost, with crypto-related revenue soaring by more than 700% to $358 million, far exceeding expectations.
CEO Vlad Tenev expressed confidence in the company’s growth, saying, “We hit the gas on product development in 2024. We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell or hold any financial asset and conduct any financial transaction through Robinhood.”
Crypto Trading Fueled by Election Sentiment
The surge in crypto trading was driven by factors including the market’s reaction to President Donald Trump’s pro-Bitcoin stance during the lead-up to the November election. After Trump signed an executive order on digital assets, Bitcoin soared to over $100,000, bolstering trading activity during the fourth quarter.
Robinhood Expands Beyond Meme Stocks
Once known for its role in meme-stock trading, Robinhood has evolved, now offering retirement products and expanding into new markets. The firm briefly launched sports-event contracts, including a Super Bowl bet, before withdrawing the offering after a request for suspension from the Commodity Futures Trading Commission.
Tenev confirmed that Robinhood is focused on launching a comprehensive event contracts platform, emphasizing that the firm aims to be a leader in this space while advocating for industry-wide clarity.
Positive Net Income and Ambitious Growth Plans
Robinhood reported its fifth consecutive quarter of positive net income, with earnings of $916 million, or $1.01 per share. The company forecasted its combined adjusted operating expenses and share-based compensation for 2025 to range between $2 billion and $2.1 billion.
Looking ahead, CFO Jason Warnick confirmed that Robinhood expects revenue growth to continue at a double-digit rate this year.
Global Expansion on the Horizon
Robinhood also announced plans to expand internationally, with a focus on Asia. The company intends to establish a home base in Singapore by 2025. Additionally, the company recently launched U.S. equity-options trading for customers in the United Kingdom, further broadening its global footprint.
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