Robinhood Reports Second Consecutive Quarterly Profit Amid Crypto Trading Surge
Robinhood Markets Inc. has reported its second consecutive quarterly profit, driven by increased interest rates and the rise in cryptocurrency trading.
For the first quarter, the company recorded a net income of $157 million, or 18 cents per share, surpassing analysts’ average estimate of 6 cents. This marks a significant improvement from the loss of $511 million, or 57 cents per share, reported a year earlier.
Chief Financial Officer Jason Warnick highlighted the company’s achievements, stating, “We experienced notable growth in revenue and improved margins. Despite increasing our marketing and growth investments, we achieved record quarterly revenues, net income, and earnings per share.”
Total net revenue increased by 40% to $618 million, driven by higher transaction-based revenue and elevated short-term interest rates. Revenue from cryptocurrency transactions saw a remarkable surge, climbing 232% to $126 million.
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Following the announcement, Robinhood’s shares rose by 6.5% to $19.01 in after-hours trading in New York. The stock had already gained 40% in value earlier this year.
However, earlier in the week, Robinhood disclosed that it had received a Wells notice from the US Securities and Exchange Commission (SEC), indicating a potential enforcement action related to its cryptocurrency business. The SEC has contended that most tokens fall under its jurisdiction, and platforms facilitating their trade should be registered with the agency. Robinhood expressed disappointment with the notice, asserting that the assets listed on its platform do not qualify as securities.
Additionally, the company reported that over 1 million customers have signed up for a waitlist for a new 3% cash-back credit card, which was announced in March.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
