Robinhood Reports Unprecedented Performance Driven by High Cryptocurrency Transaction Volume

Robinhood Markets (HOOD) saw its stock rise during Thursday’s intraday trading after announcing unparalleled profits and revenue, bolstered by a high demand for cryptocurrency trades.

Robinhood revealed an earnings per share (EPS) of $0.18 for the first quarter, triple compared to what analysts predicted, according to Visible Alpha. The company’s revenue surged 40% to $618 million compared to last year, surpassing expectations.

It was reported that revenue from transactions jumped by 59% to $329 million, “mainly powered by earnings from cryptocurrency,” which saw a 232% increase up to $126 million.

Striking Gold

The historic peaks in gold pricing significantly drove appeal, marking a 42% increase in Robinhood’s gold subscribers to an all-new high of 1.7 million.

Net deposits hit an unparalleled figure at $11.2 billion. The firm highlighted having “net positive inflows from every key conventional brokerage firm.”

The number of funded accounts surged by 810,000 to 23.9 million, while the average revenue per user (ARPU) saw an upturn of 35% reaching $104.

Co-founder and Chief Executive Officer (CEO) Vlad Tenev delivered an optimistic prediction for the coming quarter, noting that April saw the highest figures of the year for net inflows and an increase in gold subscribers. He also mentioned that over 1 million clients have signed up for the waitlist for Robinhood’s newly launched gold credit card, which is available to premium “gold” members and offers 3% cash back.

The company could be facing some headwinds with a current Securities and Exchange Commission (SEC) probe into its cryptocurrency practices revealed this week. Dan Gallagher, Robinhood’s chief legal officer, refuted any law breaches, describing the SEC’s allegations as “weak.”

Robinhood’s shares ascended roughly 1% to $18.04 as of 10:08 a.m. ET Thursday, accumulating over 40% in value this year.