MENLO PARK, Calif. - Robinhood (NASDAQ:HOOD) Markets, Inc. (NASDAQ:HOOD) reported second-quarter earnings that surpassed analyst expectations, with revenue soaring 40% year-over-year, driven by strong growth across its business segments.
Despite the strong results, Robinhood's stock dipped 0.47% following the earnings release.
The financial services company posted adjusted earnings per share of $0.21, beating the analyst estimate of $0.15. Revenue for the quarter reached $682 million, exceeding the consensus estimate of $630.69 million and marking a 40% increase from the same period last year.
Robinhood's transaction-based revenues surged 69% YoY to $327 million, primarily fueled by options revenue of $182 million (up 43%) and cryptocurrencies revenue of $81 million (up 161%). Net interest revenues grew 22% YoY to $285 million, while other revenues increased 19% to $70 million.
The company reported net income of $188 million, a significant improvement from $25 million in Q2 2023. Assets under custody rose 57% YoY to $139.7 billion, driven by continued net deposits and higher equity and cryptocurrency valuations.
"This quarter, we kept up the pace with rapid product launches and a relentless drive to provide top value for our customers," said Vlad Tenev, CEO and Co-Founder of Robinhood. "With Robinhood Gold reaching 2 million subscribers, we're witnessing the flywheel accelerate."
The company maintained its full-year 2024 expense outlook, projecting GAAP total operating expenses and Non-GAAP combined Adjusted Operating Expenses and Share-Based Compensation between $1.85 billion to $1.95 billion.
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