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Thursday, April 18, 2024

Here’s by How Much Robinhood’s Crypto Revenues Increased in Q4 23

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Robinhood’s quarterly results are in – and they have once again beaten expectations, if only by a marginal amount.

Although Robinhood has by no means been spared the aftershocks felt throughout the crypto market and the larger economic sector, things are looking up for the popular trading firm.

Revenues Are Up, Costs Are Down

Overall, in the fourth quarter of 2023, Robinhood saw a 24% increase in net revenues year-over-year, adding up to a total of $471 million and beating average analyst estimates of $454.7 million.

The average revenue generated per user amounted to 23%, indicating that consumer trust in the market grew over the past quarter. Earnings per share, YoY, amounted to $0.03, again beating the predictions of some analysts, who expected a loss of 1 cent per share.

The rise in revenues is largely due to interest payments, which are 41% larger than they were in FY2022 and added up to $236 million. Non-trading sources of revenue also had a profound impact on Robinhood’s bottom lines, with Gold Memberships, Sherwood Media subscriptions, and other income streams increasing by 30% since last year.

At the same time, Robinhood managed to cut down on total expenditures by 17%, spending only $445 million on operational costs in 2023. Robinhood CEO Vlad Tenev commented on the results of his company, stating that the positive trend continues into early 2024.

“2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally. And we’re off to an even better start in 2024, as we’ve already brought in more Funded Customers and Net Deposits through the first half of Q1 than we did in all of Q4 2023.”

Transaction Revenues Mainly Driven By Crypto

As far as revenue from transactions goes, Robinhood gained less than in the aforementioned areas while still adding up to a respectable tally of $200 million.

This represents an 8% increase YoY. According to the firms’ fiscal statement, the primary driver of this figure was crypto transaction revenue, which brought in $43 million. The second largest contributor to this figure was income from equities, with $25 million. Revenue from options, however, decreased by 2% over the same time period.

Robinhood will likely continue to increase its crypto-related revenues due to its recent business decisions. In recent months, the company has expanded into the EU and has added Bitcoin ETF trading as soon as they were approved by the SEC.

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