Gold

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<p><em><strong>Robinhood Markets, Inc. reported an increase in Net Profit of approximately 130% YoY, to $157 Million, primarily driven by the rise in revenue from crypto assets.</strong></em></p>
<p>On May 8, <strong>Robinhood </strong>Markets, Inc. (NASDAQ: HOOD) reported its quarterly reports for the quarter ended April 30. The report presented significant financial growth and an increase in user engagement.</p>
<p>This article highlights the key financial outcomes and strategic expansions.</p>
<h2 class="wp-block-heading" id="strong-financial-performance-strong"><strong>Financial Performance</strong></h2>
<h3 class="wp-block-heading" id="strong-revenues-strong"><strong>Revenues</strong></h3>
<p>Total net revenues increased by 40% YoY, reaching $618 Million in Q1 2024. The key drivers of this substantial growth include an<strong> increase in cryptocurrency revenue of 232% </strong>to $126 Million and an increase in transaction-based revenues of 59% to $329 Million.</p>
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 <blockquote class="twitter-tweet">
  <p lang="en" dir="ltr">Robinhood's crypto revenue tripled in Q1 <a href="https://t.co/Z6UtTWvz4C" rel="noopener noreferrer nofollow">pic.twitter.com/Z6UtTWvz4C</a></p>— Jeff Roberts (@jeffjohnroberts) <a href="https://twitter.com/jeffjohnroberts/status/1788305799846175225?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 8, 2024</a>
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<p>Options revenue grew by 16% to $154 Million, and equities revenue increased by 44% to $39 Million.</p>
<h4 class="wp-block-heading"><strong>Net Interest Revenue</strong></h4>
<p>Revenues from interest grew by 22%, YoY, to $254 Million, fueled by growth in<a href="https://www.thecoinrepublic.com/2023/04/14/gemini-ready-for-canadian-expansion-signed-pre-registration/" target="_blank" rel="noopener noreferrer nofollow"> interest-earning assets</a> and higher short-term interest rates.</p>
<h4 class="wp-block-heading"><strong>Other Revenue</strong></h4>
<p>The revenue from the increase in gold subscriptions has supported a 35% increase in other revenues to $35 million.</p>
<h4 class="wp-block-heading"><strong>Net Income</strong></h4>
<p><strong>Robinhood</strong> has done a tremendous job, converting<strong> a net loss of $511 Million in Q1 2023 to a net profit of $157 Million in Q1 2024</strong>, with diluted earnings per share (EPS) of $0.18.</p>
<h2 class="wp-block-heading" id="strong-operational-highlights-strong"><strong>Operational Highlights</strong></h2>
<h4 class="wp-block-heading"><strong>Reduction in Expenses</strong></h4>
<p>Total operating expenses decreased by 52% to $460 Million, mainly driven by the absence of a substantial one-time share-based compensation (SBC) expense from the previous year.</p>
<h4 class="wp-block-heading"><strong>Adjusted Operating Expenses</strong></h4>
<p>The company has invested substantially in marketing and growth, increasing adjusted operating expenses by 13% to $398 Million.</p>
<h4 class="wp-block-heading"><strong>Adjusted EBITDA</strong></h4>
<p>It demonstrated a significant improvement, increasing by 115% to $247 Million.</p>
<h3 class="wp-block-heading" id="strong-growth-in-customer-base-and-product-base-a-major-driver-of-growth-strong"><strong>Growth in Customer Base and Product Base: A major driver of Growth</strong></h3>
<h4 class="wp-block-heading"><strong>User Base</strong></h4>
<p>There is an increase in funded customer accounts by 810,000, reaching 23.9 Million customers. The investment account rose by 1.1 Million to 24.4 Million.</p>
<h4 class="wp-block-heading"><strong>Assets Under Custody (AUC)</strong></h4>
<p>This has increased by 65% YoY to $129.6 Billion, driven by higher equity, <a href="https://www.thecoinrepublic.com/2024/04/14/cook-islandss-cryptocurrency-ruling-raises-cybersecurity-issue/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency </a>valuations, and continued net deposits.</p>
<h4 class="wp-block-heading"><strong>Gold Subscribers</strong></h4>
<p>There is a substantial increase of 42% YoY, 500,000 new subscribers added to the list, reaching 1.7 Million.</p>
<h4 class="wp-block-heading has-text-align-left"><strong>Net Deposits</strong></h4>
<p>At the quarter’s end, it recorded net deposits of $11.2 Billion, showing an annualized growth rate of 44%.</p>
<h3 class="wp-block-heading" id="strong-robinhood-s-growth-fueled-by-innovation-expansion-strong"><strong>Robinhood’s Growth Fueled By Innovation &amp; Expansion</strong></h3>
<p><strong>Robinhood</strong> launched multiple initiatives to enhance user value, including introducing a 1% unlimited deposit boost and a new Gold Credit Card. It attracted more than 1 million previously interested customers. The card offers 3% cash back across all categories without annual or foreign transaction fees.</p>
<p>The company also observed robust adoption of its retirement transfer match program, transferring over $4 Billion in assets from competitors.</p>
<h4 class="wp-block-heading"><strong>Global and Operational Expansion</strong></h4>
<p><strong>Robinhood</strong> UK reached full availability as part of the company’s broader global expansion strategy. It also reported significant overnight volumes.</p>
<h3 class="wp-block-heading" id="strong-outlook-strategy-for-2024-strong"><strong>Outlook &amp; Strategy For 2024</strong></h3>
<p>The company plans to continue investing in new products, features and international expansion while improving efficiency in existing operations. The projected total operating expenses for 2024 range between $1.85 Billion and $1.95 Billion.</p>
<p>These positive results and strategic moves represent<strong> Robinhood</strong>’s commitment to democratizing finance and expanding its global footprint, targeting growth and profitability in the evolving financial landscape.</p>
<h3 class="wp-block-heading" id="strong-impact-of-report-on-stock-market-strong"><strong>Impact Of Report On Stock Market</strong></h3>
<p>The positive performance presented in the company quarterly report is expected to attract buyers, leading to an increase in share prices, as visible from the price trend in the pre-market session.&nbsp;</p>
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<p class="has-text-align-center">Source: Investing.com</p>
<p>It has experienced a rise of 4.26% in the pre-market, reaching prices above $18. It is expected to experience a further increase when the market opens.</p>

Robinhood (HOOD) Outperformed In Q1 2024; Crypto Revenues Tripled

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