Shares of Robinhood Markets Inc. rose more than 10% in the after-hours session on Tuesday, after the online trading platform posted a quarterly profit and beat Wall Street expectations for its revenue, thanks to the increase in cryptocurrency deposits and the highest number of monthly users.
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it earned $30 million, or 3 cents per share, in the fourth quarter, in contrast to a loss of $166 million, or 19 cents per share, in the fourth quarter of 2022.
Revenue rose 24% to $471 million, thanks in part to an 8% increase in transaction-based revenue, mostly related to cryptocurrencies, the company said.
Analysts polled by FactSet expected Robinhood to report a GAAP loss of a cent per share on revenue of $455 million.
Robinhood ended the quarter with 10.9 million monthly active users, improving from September’s 10.3 million monthly active users, Mizuho analysts said in a note. Revenue from cryptocurrencies has been “solid,” they said.
Robinhood has spearheaded a spending plan for 2024 that includes “growth investments in new products, features and international expansion, while becoming more efficient in our existing businesses.”
Both GAAP and adjusted operating expenses projected a range of $1.85 billion to $1.95 billion for the year.
“2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we began to expand globally,” Robinhood CEO Vlad Tenev said in a statement . “And our start to 2024 is even better, as we have already attracted more customers and net deposits in the first half of 2024.” [the first quarter] than we have done in all [the fourth quarter].”
Robinhood said subscribers to its premium “Gold” membership plan rose 25% year-over-year to 1.42 million in the quarter, while its average revenue per user (ARPU) rose 23% year-over-year to $81.
Robinhood shares ended the regular trading day down 1.4%. Over the past 12 months, shares have gained 19%, matching the gains of the S&P 500 SPX index over the same period.