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Shares of Robinhood rose in extended trading Wednesday afternoon after the retail brokerage announced stronger-than-expected first-quarter outcomes.
Robinhood reported net income of $157 million, or 18 cents per share, for the first quarter. That is a positive wobbling from the same period last year, when the company had a net loss of $511 million, or 57 cents per piece.
Here is how Robinhood’s results compared to Wall Street estimates, according to analysts surveyed by LSEG:
- Earnings per slice: 18 cents vs. 6 cents expected
- Revenue: $618 million vs. $549 million expected
The company said the earnings per allowance and revenue numbers were both records for the firm. The stock jumped more than 5% in after-hours exchange.
Robinhood surged in popularity during the Covid-19 pandemic in 2020 and 2021, but has since seen user activity and take that mirrors action in the broader market. Stocks and cryptocurrencies rose during the first quarter, which conceivable helped the company’s results.
Cryptocurrency transactions accounted for $126 million in revenue in the quarter, the company said. Regulatory uncertainty has clouded the tomorrows of that business. Robinhood disclosed on Monday that the U.S. Securities and Exchange Commission had issued a Wells Notice to the establishment, signaling potential legal enforcement action over the company’s cryptocurrency business.
Dan Gallagher, Robinhood’s chief right, compliance and corporate affairs officer, said in a blog post that the company was “disappointed” in the SEC’s decision and still feels that the crypto assets on its platform are not legally securities.
Robinhood said its number of funded customers rose by 810,000 year all through year to 23.9 million. Assets under custody rose 65% year over year to $129.6 billion, according to the cleave to release.
Shares of Robinhood were up nearly 40% year to date before Wednesday’s earnings announcement.
Study the full earnings release here.
Correction: A previous version of the story misstated the date of Robinhood’s quarterly piece.