Robinhood (NASDAQ:HOOD) shares rose more than 4% after-hours following the company’s reported Q1 results, with EPS of ($0.57) coming in better than the consensus estimate of ($0.62). Revenue grew 16% sequentially to $441 million, beating the consensus estimate of $426.76M.
Transaction-based revenues grew 11% sequentially to $207M, with Options up 7% to $133M, Cryptocurrencies up 1% to $38M, and Equities up 29% to $27M.
Net interest revenue grew 25% sequentially to $208M, driven by growth in interest-earning assets, increased securities lending activity, and higher short-term interest rates.
Net cumulative funded accounts increased 120,000 sequentially to 23.1M, and monthly active users (MAU) increased 0.4M sequentially to 11.8M.
The company confirmed it will debut a 24-Hour Market, which will allow investors to place limit orders to buy whole shares of 43 of the most traded ETFs and individual stocks. It will be released for a subset of customers next week and will be available to everyone in June.
Following the results, Mizuho Securities shared its first take, noting that Q1 continued to verify its bullish stance. According to the firm, Robinhood continues to surprise on EBITDA, with another 400bps Q/Q margin improvement, lowering SBC expectations for the year. The firm reiterated its Buy rating and $14 price target.