Robinhood Beats Expectations with Higher Crypto Revenue
Robinhood reported its fourth-quarter 2023 earnings on Tuesday. The revenue beats expectations on the back of increased crypto trading volume. The company’s crypto transaction revenue rose 10% year-over-year to $43 million.
- Crypto trading revenue rose 10% to $43 million as transaction volume climbed nearly 90%.
- Total transaction revenue grew 8% year-to-year, driven by crypto gains.
- The company is continuing international expansion after a recent EU crypto launch.
The earnings release showed Robinhood’s total transaction-based revenue grew 8% annually, fueled primarily by crypto trading gains. Overall revenue hit $471 million, surpassing average analyst estimates of $454.7 million.
Read more: Blockchain Association Warns Against Stifling Crypto Legislation
The launch of spot bitcoin ETFs in the United States may have sparked increased retail interest, which contributed to the quarter’s significant growth in cryptocurrency trading activity.
Robinhood handled 89% more notional crypto trading volume
Robinhood said the notional value of crypto transactions on its platform jumped 89%. More users traded higher volumes, boosting transaction fees that drive revenue.
“2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally,” said CEO Vlad Tenev. He highlighted even faster user and revenue growth so far in 2024.
Robinhood is looking to capitalize on the momentum by capturing a greater crypto market share. The company recently expanded into Europe, allowing EU residents to trade crypto assets on its platform. The move follows Robinhood’s launch in the U.K. as it stretches beyond the U.S.
Read more: Ripple Expands US Presence With Purchase Of NY Crypto Trust Firm
Tenev previously cited the EU’s clear crypto regulatory environment as ideal for Robinhood’s overseas growth. Ongoing product innovation could also support user acquisition goals. Robinhood Connect recently partnered with leading wallet MetaMask to heighten crypto functionality.
The quarterly earnings come after Robinhood endured some growing pain in 2023. Last November, the company reported a 55% year-over-year decline in crypto revenue as transaction volumes dried up.
