TL;DR
- Robinhood reports revenue of $637 million in Q3 2024, up 36% year over year.
- Earnings per share (EPS) were $0.17, significantly improving from the prior year’s loss.
- Expansion of services in the UK and new products on the way to attract active traders.
Robinhood Markets, Inc. (NASDAQ: HOOD) announced its financial results for the third quarter of 2024, showing an outstanding performance with total revenue of $637 million, the second highest in its history.
This increase represents a 36% growth compared to the same period in 2023.
Earnings per share (EPS) came in at $0.17, up significantly from the $0.09 per share loss the company posted in the third quarter of the previous year.
The information, originally published on Globe Newswire, highlights how growth in transactions, subscriptions to its Gold service and the interest generated by its assets have driven these results.
During this quarter, the company experienced significant growth in its transaction-based revenue, which increased 72% year-over-year to $319 million.
This increase was driven primarily by options and cryptocurrencies, whose revenues reached $202 million and $61 million respectively, in addition to a 37% increase in stock transactions.
There was also a 9% growth in net interest income, reflecting the increase in interest-earning assets.
In terms of subscribers, Robinhood Gold, the premium membership service, hit a new record of 2.2 million, representing a 65% year-over-year increase and generating significant additional revenue for the company.
Robinhood Innovations and International Growth in 2024
Robinhood continues to expand its value proposition with products for active traders and new investment tools.
Recently, it introduced Robinhood Legend, a platform designed specifically for traders who need an advanced and personalized tool.
In addition, the company will launch futures options and indexed contracts with competitive fees in the coming months.
This strategy reflects Robinhood‘s focus on attracting more active customers and diversifying its product range.
Expansion in the UK market is another key aspect of the quarter.
Robinhood has begun offering stock lending services and launched margin trading, with the Financial Conduct Authority (FCA) authorisation to begin offering options trading from 2025.
This underlines the company’s commitment to expanding its global presence and adapting to the demands of international investors.
Growth in assets under custody (AUC) has also been notable, reaching $152.2 billion, driven by deposits and an improvement in asset valuation.
Robinhood has begun a share buyback program, investing $97 million to date, as part of a broader $1 billion buyback plan to be completed in two to three years.
These strategic moves seek to strengthen its market value and improve profitability, attracting both new customers and investors around the world.
