Robinhood’s Q1 2024: Revenue Surges 40%, Crypto Trading Volume Up 224%

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Recently, Robinhood revealed the financial reports for Q1 2024 ending on March 31, 2024. Remarkably, Crypto Notional Trading Volumes surged by an incredible annualized rate of 224% to reach a remarkable $36.0 billion.

Previously, as reported by TronWeekly, on May 4th the company suffered a regulatory setback when it was served with a Wells Notice from the SEC that included recommendations from the SEC staff for initiating legal proceedings against them for possible violations of the Securities Exchange Act (SEC). The Chief Legal Officer Dan Gallagher expressed disappointment saying that assets listed on their platform were not securities.

The SEC’s focus on Robinhood stems from investigative subpoenas concerning Robinhood Crypto’s activities, encompassing cryptocurrency listings, custody, and platform operations. The Wells Notice serves as a preliminary indication by the SEC staff to recommend enforcement action, alleging violations of the Securities Exchange Act.

Despite regulatory hurdles, Robinhood’s CEO and Co-Founder, Vlad Tenev, remained optimistic, highlighting the company’s achievements in Q1. Tenev noted:

We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs for Net Deposits and Gold SubscribersQ2 is off to a strong start, with April being our highest month of the year for Net Deposits and Gold Subscriber growth, and we’re excited to see strong interest from over 1 million customers in our Robinhood Gold Card.

Robinhood’s First Quarter Financial Report

Breaking down the first-quarter results, total net revenues soared by 40% year-over-year to $618 million. Transaction-based revenues witnessed a significant uptick of 59%, primarily driven by cryptocurrencies revenue, options revenue, and equities revenue. Net interest revenues climbed by 22%, fueled by growth in interest-earning assets and higher short-term interest rates.

In addition, other revenues went up by 35%. This was mainly due to higher Gold subscription re­venue. It’s worth noting that net income­ climbed year-over-ye­ar to $157 million. This marked a major turnaround from a net loss of $511 million in Q1 2023.

Looking at operational stats, investment accounts gre­w by 1.1 million to 24.4 million. Assets Under Custody (AUC) saw a significant 65% year-ove­r-year increase to $129.6 billion. This was mainly drive­n by higher stock and crypto valuations along with continued Net De­posits. Even while facing regulatory scrutiny, Robinhood’s strong financial pe­rformance and strategic moves show its commitme­nt to giving customers value and driving sustainable growth in 2024.

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