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Robinhood has posted a solid Q4 with its cryptocurrency revenue skyrocketing more than 700% to $358 million.
In its earnings report, the trading platform revealed a 115% revenue increase to a record $1.01 billion, trumping Wall Street's projections of $940.8 million. Net income also jumped 10x to a record $916 million.
“We hit the gas on product development in 2024,” said chief executive cfficer Vlad Tenev in a statement. “We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell or hold any financial asset and conduct any financial transaction through Robinhood.”
The firm's stock price consequently surged 15% to over $65 in after-hours trading, after already enjoying a 42% year-to-date increase.
Robinhood's successful quarter comes as Bitcoin trades at its highest price zone, consistently flirting with the $100K mark. The trading platform has also expanded its offerings to include retirement products and experimental financial instruments.
One such initiative was its election-focused event contracts, which were quickly followed by a foray into sports-event contracts linked to the Super Bowl. However, the latter was swiftly withdrawn after the company received a formal suspension request from the Commodity Futures Trading Commission (CFTC).
In a blog post ahead of the Super Bowl, the exchange revealed that the regulator requested that Robinhood “not permit customers to access sports event contracts." As a result, Robinhood is suspending the rollout of its "Pro Football Championship" market, which was rolled out yesterday to around 1% of customers.
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"We are disappointed by this outcome, especially given that we had been in regular communication with the CFTC about our intent and plans to offer this product," Robinhood stated.
