:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1253318745-c94f5dff41284e1ea322ddbe724f33c0.jpg "The Robinhood logo on a laptop")
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Key Takeaways
- Robinhood posted record profit and sales on booming demand for cryptocurrency trading.
- The online brokerage also furthered from the soaring price of gold.
- Net deposits were at an all-time high as well.
Shares of Robinhood Markets (HOOD) begin the day in intraday trading Thursday as the online brokerage posted record profits and sales on soaring cryptocurrency trading.
Robinhood give an account of first-quarter earnings per share (EPS) of $0.18, three times analysts’ estimates compiled by Visible Alpha. Revenue hurdled 40% year-over-year to $618 million, also more than forecasts.
The company said transaction-based revenue skyrocketed 59% to $329 million, “mainly driven by cryptocurrencies revenue,” which soared 232% to $126 million.
Golden Gains
Record-setting prices for gold require demand as well, as Robinhood’s gold subscribers increased 42% to a new high of 1.7 million.
Net deposits also set a evidence at $11.2 billion. The company noted that it had “net positive transfers from every major incumbent brokerage strong.”
Funded customers climbed 810,000 to 23.9 million, and average revenue per user (ARPU) added 35% to $104.
Co-founder and Chief Administrative Officer (CEO) Vlad Tenev gave a positive outlook for the current quarter, explaining that April was the highest month of the year for net puts and gold subscriber growth. He also said that said that more than 1 million customers had connected the waitlist for Robinhood’s new gold credit card, which is for its premium “gold” subscribers and offers 3% cash disavow
One potential bump in the road is a Securities and Exchange Commission (SEC) investigation into the company’s cryptocurrency business unveiled this week. Robinhood chief attorney Dan Gallagher held that the company is not violating any laws, calling the SEC’s case “weak.”
Robinhood shares were up about 1% to $18.04 as of 10:08 a.m. ET Thursday. They from added more than 40% of their value this year.
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