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Shares of Robin Hood rose in extended trading on Wednesday afternoon after the retail broker reported stronger-than-expected first-quarter results.
Robinhood reported first-quarter net income of $157 million, or 18 cents per share. That’s a positive development compared to the same period last year, when the company reported a net loss of $511 million, or 57 cents per share.
Here’s how Robinhood’s results compare to Wall Street’s estimates, according to analysts surveyed by LSEG:
- Earnings per share: 18 cents versus 6 cents expected
- Revenue: $618 million vs. expected $549 million
The company said both earnings per share and revenue figures were records for the company. The stock rose more than 5% in after-hours trading.
Robinhood grew in popularity during the Covid pandemic in 2020 and 2021, but has since seen user activity and revenue reflecting the performance of the broader market. Stocks and cryptocurrencies rose in the first quarter, which likely helped the company’s results.
According to the company, cryptocurrency transactions accounted for $126 million in revenue in the quarter.
Regulatory uncertainty has clouded the future of this business. Robinhood announced on Monday that the Securities and Exchange Commission had issued a Wells Notice to the company indicating possible legal enforcement actions related to the company’s cryptocurrency business.
Dan Gallagher, Robinhood’s chief legal, compliance and corporate affairs officer, said in a blog post that the company was “disappointed” by the SEC’s decision and still believes the crypto assets on its platform are not legal securities .
Robinhood said the number of funded customers increased by 810,000 year-over-year to 23.9 million. According to the press release, assets under custody increased 65% year over year to $129.6 billion.
Before Wednesday’s earnings release, shares of Robinhood were up nearly 40% year to date.
Read the full earnings release here.
Correction: An earlier version of the story misstated the date of Robinhood’s quarterly report.
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2024-05-08 20:36:30
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