2024

Robinhood CEO Vladimir Tenev expressed disappointment during a recent Q1 earnings call following the Securities and Exchange Commission’s (SEC)<a href="https://thecoinrise.com/robinhood-receives-wells-notice-from-the-us-sec/" rel="noopener noreferrer nofollow"> issuance of a Wells notice</a> to the company. Despite this setback, Robinhood reported a significant surge in crypto trading volumes, reaching $36 billion, representing a staggering 224% increase in the quarter.
The firm’s crypto-related services played a vital role,<a href="https://investors.robinhood.com/news/news-details/2024/Robinhood-Reports-First-Quarter-2024-Results/default.aspx" rel="noopener noreferrer nofollow"> contributing</a> nearly 40% to its transaction-based revenue of $329 million. This robust performance led Robinhood to record its second consecutive profitable quarter, with a net income of $157 million.
<h2 id="span-style-font-weight-400-robinhood-and-sec-span">Robinhood and SEC</h2>
However, the Wells notice targeting Robinhood’s crypto listings and custodian operations added a layer of uncertainty. Tenev<a href="https://edge.media-server.com/mmc/p/b4jy2hcv/" rel="noopener noreferrer nofollow"> described</a> the news as disappointing, while CFO Jason Warnick emphasized the company’s adherence to conservative practices and compliance standards across all its operations.
Despite these challenges, Robinhood executives assured that customer accounts remain unaffected and emphasized their commitment to defend the firm and advocate for their customers.
“Our 2024 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in our existing businesses,” said Robinhood.
<h3 id="span-style-font-weight-400-robinhood-q1-performance-span">Robinhood Q1 Performance</h3>
Amidst the regulatory concerns, Robinhood’s Q1 performance exceeded industry expectations, with reported revenue of $618 million, beating a $534.5 million estimate by investment research firm Zacks by 15.6%. This<a href="https://thecoinrise.com/robinhood-crypto-trading-volume-recovers-by-75-in-november/" rel="noopener noreferrer nofollow"> positive outcome and increased trading volume</a> led to a surge in Robinhood’s shares, rallying as high as 7.3% to $19.15 in after-hours trading.
Although the share price has slightly cooled off to $18.55, Robinhood’s stock has seen a notable 44.3% increase year-to-date. The company reported custodying $26.2 billion worth of crypto for users, marking a substantial 78% rise from the previous.
“Taken together, we continue to expect both GAAP total operating expenses and Non-GAAP combined Adjusted Operating Expenses and SBC for full-year 2024 to be in the range of $1.85 billion to $1.95 billion,” added the company.
<h2 id="span-style-font-weight-400-expansion-of-operations-span">Expansion of Operations</h2>
Robinhood is on an expansion spree, and as per an earlier report from TheCoinRise, the trading platform<a href="https://thecoinrise.com/robinhood-acquires-fintech-x1-for-95m/" rel="noopener noreferrer nofollow"> acquired credit card startup X1</a> for a whopping $95 million. As per the company, the acquisition was “an important step” in developing a close bond with its current clients.&nbsp;
The company also<a href="https://thecoinrise.com/robinhood-repurchases-sbfs-stake-in-the-company/" rel="noopener noreferrer nofollow"> repurchased the shares it sold</a> to the former chief executive of bankrupt digital asset trading platform FTX, Sam Bankman-Fried, also known as SBF in the digital asset sector.
The post <a href="https://thecoinrise.com/robinhood-reports-a-whopping-224-surge-in-crypto-trading-volumes/" rel="noopener noreferrer nofollow">Robinhood Reports a Whopping 224% Surge in Crypto Trading Volumes</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Robinhood Reports a Whopping 224% Surge in Crypto Trading Volumes

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