Robinhood Q4 2024 Earnings Report
Key Takeaways
Robinhood's Q4 2024 earnings exceeded expectations with revenue surging 115% year-over-year to $1.01 billion and EPS reaching $1.01. Net income grew more than tenfold to $916 million, while transaction-based revenue soared over 200%, led by a 700% increase in cryptocurrency trading. Net deposits hit a record $16.1 billion, and the company saw strong user engagement with ARPU more than doubling.
Q4 revenue grew 115% year-over-year to $1.01 billion.
Net income increased over 10x to $916 million, with diluted EPS of $1.01.
Transaction-based revenue surged over 200%, driven by a 700% increase in cryptocurrency revenue.
Net deposits reached a record $16.1 billion, growing at an annualized rate of 42%.
Robinhood Revenue
Robinhood EPS
Robinhood Revenue by Segment
Forward Guidance
Robinhood expects continued growth in 2025, driven by new product offerings, international expansion, and increased user engagement.
Positive Outlook
- Strong momentum in cryptocurrency trading, with plans to expand offerings.
- Expansion into the Asia-Pacific region, with Singapore as a key hub.
- Launch of futures trading and index options for active traders.
- Robinhood Gold subscriber base expected to continue growing.
- Anticipated regulatory approval for the Bitstamp acquisition in H1 2025.
Challenges Ahead
- Potential impact of regulatory changes on revenue models.
- Uncertainty around interest rate movements affecting net interest income.
- Increased competition in the brokerage and fintech space.
- Potential credit losses and fraud risks associated with platform growth.
- Costs related to international expansion and acquisitions may weigh on margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income