Robinhood Shares Surge 16% as Crypto Trading Skyrockets 700% in Q4


Robinhood Markets Inc. (NASDAQ: HOOD) saw its stock surge over 16% in after-hours trading following a stellar earnings report for Q4 2024, surpassing analyst expectations in both revenue and earnings. The company’s performance was largely driven by a massive increase in cryptocurrency trading, underscoring its dominant position in the fintech space.

Record-Breaking Q4 Performance

For the quarter ending December 31, 2024, Robinhood reported:

  • Adjusted earnings per share (EPS): $1.01 (vs. $0.32 expected)
  • Revenue: $1.01 billion, up 115% year-over-year (vs. $849 million expected)
  • Transaction-based revenue: $358 million, an eightfold increase from the previous year
  • Options revenue: $222 million, up 83%
  • Equities revenue: $61 million, up 144%
  • Net interest revenue: $296 million, up 25%
  • Other revenue (including Gold subscription): $46 million, up 31%

Assets under custody surged over 300%, reaching $613 million by year-end. The company also reported an 8% growth in funded customer accounts, totaling 25.2 million, while investment accounts rose 10% to 26.2 million. Net deposits increased 49% to $50.5 billion.

Crypto Boom Fuels Robinhood’s Growth

Cryptocurrency remains a key revenue driver, with transaction volumes soaring over 400% year-over-year, reaching $71 billion in Q4. The company expanded its crypto offerings by adding seven new assets in the U.S. and launching Ethereum staking in the EU. Additionally, Robinhood announced its acquisition of Bitstamp, the world’s longest-running cryptocurrency exchange, with the deal expected to close in the first half of 2025.

Global Expansion & Product Innovations

Robinhood continues to broaden its global footprint, with plans to enter the Asia-Pacific market in 2025 and establish a regional headquarters in Singapore. The company also launched options trading in the U.K. and expanded its U.S. and EU product suite.

Beyond geographical expansion, Robinhood introduced index options trading, futures trading across multiple asset classes, and launched the Gold Card, a premium offering for its users.

2024 Full-Year Financial Highlights

For fiscal year 2024, Robinhood reported:

  • EPS: $1.56 (up from a loss of $0.61 in 2023)
  • Total revenue: $2.95 billion, up 58% year-over-year

Looking Ahead: 2025 Outlook

While Robinhood does not provide forward guidance due to market volatility, the company projects adjusted operating expenses and stock-based compensation to range between $2.0 billion and $2.1 billion for fiscal year 2025.

CEO’s Vision for the Future

Co-founder and CEO Vlad Tenev remains optimistic about Robinhood’s trajectory, stating:
“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. 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.”

Conclusion

Robinhood’s robust earnings report underscores its strong positioning in the fintech and crypto trading space. With aggressive global expansion, innovative product launches, and a rapidly growing user base, the company is well-positioned for further growth in 2025. Investors will closely watch its ability to sustain momentum amid the ever-changing financial landscape.

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