Robinhood Q1 Earnings Highlights: Revenue Beat, EPS Beat, Over 1 Million On Gold Credit Card Waitlist

Zinger Key Points
  • “We continued to aggressively execute on our product roadmap in Q1," says CEO Vlad Tenev.
  • Robinhood sees strong interest in its Gold credit card.

Trading platform Robinhood Markets HOOD reported first-quarter financial results after the market close Wednesday.

Here are the key highlights.

What Happened: Robinhood reported record revenue of $618 million, up 40% year-over-year. The revenue total beat a Street consensus estimate of $548.6 million, according to data from Benzinga Pro.

The company reported earnings per share of 18 cents in the first quarter, which beat a Street consensus estimate of 5 cents per share.

Transaction-based revenue was $329 million in the first quarter, up 59% year-over-year. Of the total, cryptocurrency revenue was $126 million, up 232% year-over-year. Options revenue of $154 million was up 16% year-over-year and equities revenue of $39 million was up 44% year-over-year.

Robinhood said it recorded net deposits of $11.2 billion in the first quarter and net positive transfers from "every incumbent brokerage firm."

Gold subscribers hit a new high of 1.7 million in the first quarter, up 42% year-over-year. The Gold subscriber growth was the fastest in quarterly growth in three years, the company said.

The growth comes with the Robinhood Gold Credit Card announcement in the first quarter. Over 1 million customers have joined the waitlist, the company said.

"We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs for Net Deposits and Gold Subscribers," Robinhood CEO Vlad Tenev said.

Chief Financial Officer Jason Warnick said revenue, net income and earnings per share all set company records in the first quarter, coinciding with the company stepping up marketing and growth investments.

Funded customers for the company totaled 23.9 million at quarter’s end, an increase of 810,000. Investment accounts totaled 24.4 million, up 1.1 million year-over-year. Monthly active users totaled 13.7 million in the quarter, up 16% year-over-year.

Robinhood’s 24-hour market has shown $10 billion in trading volume since its launch, the company said.

Related Link: Robinhood’s SEC Challenges Likely Overblown, Shares Up as Market Shrugs Off Crypto Concerns: Analyst

What's Next: The company said it expects adjusted operating expenses and stock-based compensation to be in a range of $1.85 billion to $1.95 billion for the full year.

"Our 2024 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in our existing businesses," according to Robinhood.

Tenev praised the start to Robinhood’s fiscal year.

"Q2 is off to a strong start with April being our highest month of the year for Net Deposits and Gold Subscriber growth, and we're excited to see strong interest from over 1 million customers in our Robinhood Gold Card," Tenev said in a statement.

HOOD Price Action: Robinhood shares are up 5% to $18.70 in after-hours trading Wednesday versus a 52-week trading range of $7.91 to $20.55.

Read Next: Robinhood’s Expected Move To Profitability In 2024 ‘A Positive Sign’ Ahead Of Q1 Earnings, Analyst Says

Photo via Shutterstock.

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