Timothy Morano
February 13th, 2025 16:18
Robinhood experienced significant growth in the fourth quarter of 2024, with revenue rising 115% year-on-year, due to a surge in crypto trading and strategic expansion.
According to GlobEnewswire, Robinhood Markets, Inc. (NASDAQ:HOOD) reported four quarters of 2024, with total net revenue reaching $10.1 billion, an increase of 115% compared to the same period last year. This surge in revenue is largely due to a significant boost to transaction-based revenue, particularly from cryptocurrency transactions.
Key Financial Highlights
Transaction-based revenues rose more than 200% year-on-year to $672 million in the fourth quarter of 2024, reaching $358 million, primarily due to a 700% increase in cryptocurrency revenue. Options and stock revenues also experienced significant growth, up 83% and 144%, respectively.
Net interest income rose 25% to $296 million, supported by interest assets growth. Meanwhile, other revenues rose 31% to $46 million. This is primarily due to increased gold subscription revenue.
Net income for the fourth quarter skyrocketed more than 10 times, at $916 million, translated to a diluted EPS of $1.01. Compared to this, it’s EPS of $0.03 for the fourth quarter of 2023.
Strategic Expansion and Product Development
Throughout 2024, Robinhood accelerated its product development initiative, launched a new platform for active traders, introduced gold cards, and expanded its product suites in the UK and EU. CEO Vlad Tenev expressed optimism about the future and highlighted Robinhood’s commitment to enabling users to manage financial assets through the platform globally.
The company has also made great strides in expanding its cryptocurrency offering. The volume of cryptographic concepts rose by more than 400% year-on-year to $71 billion in the fourth quarter of 2024. Robinhood has added seven new crypto assets to the US and launched Ethereum (ETH) in the EU. Additionally, Robinhood has announced plans to acquire Bitstamp, the world’s longest-running cryptocurrency exchange, which is scheduled to close in the first half of 2025.
Year-round Performance in 2024
For the full year of 2024, Robinhood’s total net revenue rose 58% to $2.95 billion. Net income was reported at $1.41 billion. This is a significant turnaround from a net loss of $540 million in 2023. Additionally, operating expenses fell 21% to $1.9 billion this year.
Robinhood’s strategic focus in expanding the global footprint was revealed in its plans to enter the Asia-Pacific market in 2025, establishing Singapore as its regional headquarters. The company has also started offering options trading to its UK customers.
Future outlook
Looking forward to 2025, Robinhood aims to continue its growth trajectory with a focus on launching new products, expanding internationally and strengthening its existing business. The company’s 2025 expense plan highlights investments in these areas, with adjusted operating expenses and stock-based compensation expected to range from $2 billion to $2.1 billion.
Robinhood’s robust performance in 2024 sets a strong foundation to advance ambitious plans, leverage a growing user base, and expand product offerings and drive further growth.
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