Categories: MarketsMenafn

Robinhood Reports Strong Q2 Earnings

Robinhood crypto reported second-quarter revenues of $682 million, a 40% increase from the previous year. This growth was driven by a resurgence in meme stocks and a 161% rise in cryptocurrency transaction-based revenues, reaching $81 million. Overall, transaction-based revenues grew by 69% to $327 million.

The company’s earnings per share (EPS) rose to 21 cents, up from three cents per share a year ago, exceeding Wall Street’s expectations. Net income increased to $188 million, compared to $25 million the previous year. The stock price showed a modest increase during after-hours trading.

In June, Robinhood agreed to acquire Bitstamp, Ltd., a cryptocurrency exchange with an international presence, enhancing its capabilities and reach. Bitstamp has 50 active licenses and registrations across the EU, UK, US, and Asia. In July, Robinhood also acquired Pluto Capital Inc., an AI-powered investment research platform. 

Robinhood Expands Product Offerings and Subscriber Base

Robinhood introduced industry-leading margin rates in May, which led to a 20% increase in margin balances, reaching $5 billion by the end of the second quarter. The company also launched a new credit card and expanded its subscription service, Robinhood Gold, which now has 2 million subscribers, a 61% year-over-year increase. Assets under custody rose by 57% year-over-year to $139.7 billion, with record net deposits of $13.2 billion for the quarter.

Also, Robinhood has been actively returning value to its shareholders. In May, the board of directors authorized a $1 billion share repurchase program, which began in July 2024 and is planned to be executed over the next two to three years. The company reported a temporary suspension of its overnight trading services due to issues with its execution venue, Blue Ocean ATS.

Robinhood Focuses on Expanding Business Lines

Robinhood stated that it will continue to focus on expanding its business lines. The company’s retirement assets totaled $8.7 billion, up from $0.8 billion at the end of the second quarter 2023. Robinhood has been offering bonuses to attract new clients, which has helped increase customer acquisition. The company has indicated that more acquisitions may be on the horizon as it seeks to expand its platform for customers.

Cryptomode reported last month that Robinhood’s total net revenues increased 40% yearly, to $618M.

Revenue generated from transactions witnessed an impressive 59% increase, reaching $329 million, largely fueled by earnings from cryptocurrency, as indicated by the company. These crypto revenues themselves jumped to $126 million, marking a 232% rise compared to the previous year.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Crypto Liquidations Exceed $340M as Bitcoin Reaches New High

Over $340 million in crypto liquidations occurred within 24 hours after Bitcoin’s price spiked near…

6 hours ago

XRP Surges 31.9% in 24 hours After Gensler Announces Exit

The price of the XRP Ledger blockchain’s native token (XRP) has been rising over the…

18 hours ago

Momcozy Honored with Multiple International Awards

Momcozy, a global leader in maternal and infant care, has continued to impress with its…

21 hours ago

Local SEO Tampa Enhances Digital Marketing Services for Tampa Bay Small Businesses

Local SEO Tampa (https://localseotampa.com/), a trusted digital marketing firm in Florida since 2007, proudly expands…

21 hours ago

VAIOT Launches Legal Torch to Democratize Access to Affordable Legal Support

Birkirkara, Malta, 22nd November 2024, ZEX PR WIRE, VAIOT, a company providing AI-driven Legal Tech…

1 day ago

Classic Watches: A Timeless Source in the Data-Driven Era and Why Dedondi is Leading the Way

Dubai, UAE, 22nd November 2024, ZEX PR WIRE, In today’s data-driven world, information has become…

1 day ago