May 30, 2024

Robinhood’s shares surged by approximately 6% on Thursday morning following the announcement of its record quarterly revenue and profits that exceeded analysts’ predictions.

In its latest earnings report, the company posted a net income of $157 million, or 18 cents per share, on revenue of $618 million, exceeding Wall Street’s expectations of 6 cents per share on revenue of $553 million.

The online trading platform, whose crypto arm is on the radar of the U.S. Securities and Exchange Commission (SEC) for allegedly violating securities laws, is thriving on cryptocurrency. In the first quarter, the company generated $126 million in revenue through cryptocurrency transactions, up 232% from last year.

The company has always been an advocate of cryptocurrency. It was one of the first platforms to allow Dogecoin trading on its app in 2021, and as a result, 62% of its crypto revenue came from Dogecoin. It also launched a cryptocurrency wallet in the same year that gained popularity among investors.

Earlier this year, the company announced the launch of a new credit card exclusively for Robinhood Gold subscribers, its premium membership. The Gold credit card offers industry-leading benefits, including 3% cash back on all purchases and no annual or foreign transaction fees. The waitlist for the card has already exceeded one million customers, per the latest report.

“We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs for net deposits and Gold subscribers,” said Vlad Tenev, CEO and co-founder of Robinhood, on the call. He added that April was the company’s month of the year for growth in those arenas, along with interest from 1 million customers in the Gold credit card.

Robinhood reported a rise of 810,000 funded customers, taking the total to 23.9 million. The assets under custody rose 65% in the last year to $129.6 billion, and the net deposits in the quarter were $11.2 billion. In the meantime, monthly active users increased by 16% to 13.7 million.

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