Robinhood (NASDAQ:HOOD) reported Q1 2023 results yesterday which were perceived as better than anticipated by investors.
Robinhood said that net revenues increased 16% sequentially to $441 million, with transaction-based revenues increasing as well by 11% to $133 million.
Crypto trading, once a big driver of business, declined by 1% to $38 million, while more traditional equities jumped by 29% to $27 million.
Net interest revenue increased 25% sequentially to $208 million, with Robinhood explaining that the growth was due to increased securities lending activity and higher short-term interest rates.
The net income delivered a loss of $511 million and earnings per share of -$0.57, compared with a net loss of $166 million, or EPS of -$0.19, in Q4 2022, a sequential decrease of $345 million or $0.38 per share.
Robinhood reported an additional 400,000 new users to the platform, now standing at 11.8 million. Net funded accounts of 23.1 million, rising 120,000 sequentially.
Cash on hand stood at $5.5 billion, down from $6.3 billion in Q4 2022.
Vlad Tenev, CEO and Co-Founder of Robinhood Markets, said they had a great start of the year as they boosted customer satisfaction and “ship aggressively” while on a path to GAAP profitability.
Tenev said the launch of 24-hour trading next week is emblematic of the innovation of the platform.
Robinhood says it is now the only platform offering 24-hour trading in the US.
Shares in Robinhood are up in pre-market trading.