Robinhood shares jump 16% as company smashes estimates with 700% crypto trading growth

Shares in Robinhood Markets Inc. jumped over 16% in late trading today after the financial services company smashed expectations on revenue and earnings in its fiscal 2024 fourth quarter.

For the quarter that ended on Dec. 31, Robinhood reported adjusted earnings per share of $1.01, up from three cents a share in the same quarter of 2023, on revenue of $1.01 billion, up 115% year-over-year. Both figures were well ahead of the 32 cents per share and revenue of $849 million expected by analysts.

Robinhood is best known for its cryptocurrency trading services and it comes as no surprise that crypto was the key driver behind the company’s strong quarter, with transaction revenue soaring eightfold year-over-year, to $358 million. The company also saw strong growth in both options and equities revenue, which were up 83% and 144% year-over-year, respectively, to $222 million and $61 million.

The amount of funds Robinhood is sitting in also delivering for the company, with net interest revenue growing 25%, to $296 million, while other revenue, which includes the company’s gold subscription service, was up 31% year-over-year to $46 million. Assets under custody as of the end of the year sat at $613 million, up over 300%.

The increasing number of assets was driven by customer growth, with funded customers growing 8%, to 25.2 million, while investment accounts grew 10%, to 26.2 million. Net deposits also rose 49%, to $50.5 billion.

Recent business highlights include a significant expansion in cryptocurrency access across the U.S. and European Union, with notional volumes surging over 400% year-over-year to $71 billion in the fourth quarter. Robinhood also added seven new crypto assets in the U.S. and launched Ethereum staking in the EU. It also moved to acquire Bitstamp, the world’s longest-running cryptocurrency exchange, with the deal expected to close in the first half of 2025.

Robinhood also rolled out index options to all customers and introduced futures trading directly in-app, enabling trades across stock indexes, energy, currency, metals and crypto. The company is also expanding globally, with plans to enter the Asia-Pacific market in 2025, setting up a regional headquarters in Singapore while recently launching options trading for U.K. customers.

For the full fiscal year 2024, Robinhood reported adjusted earnings per share of $1.56, up from a loss of 61 cents per share in 2023, on revenue of $2.95 billion, up 58% year-over-year.

“We hit the gas on product development in 2024 with a new platform for active traders, Gold Card launch, an expanded U.K. and EU product suite and much more,” co-founder and Chief Executive Vlad Tenev said in the company’s earnings release. “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.”

Given the volatile nature of the cryptocurrency market, Robinhood generally doesn’t provide outlooks and this quarter was no different, but the company did say that it expects adjusted operating expenses and stock-based compensation for the full fiscal year 2025 of $2.0 billion to $2.1 billion.

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