Robinhood (NASDAQ:HOOD) is reporting “record” revenues of $618 million, up 40% year-over-year, and GAAP Diluted EPS of $0.18 for Q1 of 2024.
The modern spin on a brokerage that incorporates crypto said net deposits stood at $11.2 billion with “positive transfers from every major incumbent brokerage firm.”
Vlad Tenev, CEO and co-founder of Robinhood, said they are aggressively executing on their roadmap, sharing that q2 is off to a solid start, with April being one of their best months.
Jason Warnick, Robinhood’s Chief Financial Officer, said that during the first quarter, they set records for quarterly revenues, net income, and EPS.
Robinhood reported that transaction-based revenues increased 59% year-over-year to $329 million, primarily driven by crypto revenue of $126 million, up 232%, options revenue of $154 million, up 16%, and equities revenue of $39 million, up 44%.
Net interest revenues increased 22% year-over-year to $254 million.
Other revenues increased 35% year-over-year to $35 million, primarily driven by higher Gold subscription revenue.
Net income increased year-over-year to $157 million, or diluted earnings per share (EPS) of $0.18, compared with a net loss of $511 million, or diluted EPS of -$0.57, in Q1 2023.
Funded Customers increased by 810,000 year-over-year to 23.9 million, and Investment Accounts increased by 1.1 million year-over-year to 24.4 million.
Assets Under Custody (AUC) increased 65% year-over-year to $129.6 billion, primarily driven by higher equity and cryptocurrency valuations and continued net deposits.
Average Revenue Per User (ARPU) increased by 35% year-over-year to $104. and Gold Subscribers increased by 500,000, or 42%, year-over-year to 1.7 million.
Cash and cash equivalents totaled $4.7 billion compared with $5.5 billion at the end of Q1 2023.
Robinhood drives value for customers as it makes progress on its goal to be the most trusted, lowest cost, and most culturally relevant money app worldwide.
Robinhood Retirement grew more than 4X year-to-date.
Of note, Robinhood said its UK operations achieved full availability as it expanded oerpations.
In after-hours trading, Robinhood shares are currently trading up by over 6%.
The earnings call is ongoing at the time of this report. It will be interesting to learn any update on the SEC investigation following the report that a Wells Notice has been received from the SEC.
