Robinhood Doubles Revenue and Triples Earnings in Blockbuster Q3
- Robinhood Markets reported strong Q3 revenue of $1.2 billion, nearly double the previous year and exceeding forecasts, resulting in net income of $556 million.
- The company surpassed overall expectations with $989 million in total sales and $386 million in profit.
- Robinhood expanded its offerings by acquiring crypto exchange Bitstamp in June and launching into the prediction market niche with a new platform in partnership with Kalshi.
Robinhood had a strong Q3, with a revenue of US$1.2 billion (AU$1.85 billion), nearly double a year earlier and ahead of forecasts. Earnings per share came in at US$0.61 (AU$0.94) with net income of US$556 million (AU$856.24 million).
Chairman and CEO Vlad Tenev attributed the results to faster product rollout, citing rapid growth in prediction markets, the early rollout of Robinhood Banking, and upcoming plans for Robinhood Ventures.
Related: Brazil and Hong Kong Link CBDC Networks in Cross-Border Blockchain Pilot Using Chainlink
Robinhood Beats Expectations
The broker has been expanding beyond trading as crypto activity rebounded. Last quarter, Robinhood posted total sales of US$989 million (AU$1.52 billion), EPS of US$0.42 (AU$0.65), and profits of US$386 million (AU$594.44 million), all above expectations.
Jason Warnick, CFO of Robinhood, believes Q4 will continue with a bang and new record monthly trading volumes.
Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more business lines—Prediction Markets and Bitstamp—that are generating approximately $100 million or more in annualized revenues. And Q4 is off to a strong start in October, with record monthly trading volumes across equities, options, prediction markets, and futures, and new highs for margin balances.
Jason Warnick, Chief Financial Officer of Robinhood. Crypto News Australia reported that Robinhood closed the Bitstamp acquisition in June of this year, adding a regulated trading venue and users across more than 50 countries. For comparison, the company posted US$61 million (AU$93.94 million) in crypto revenue in the year-ago quarter.
And yes, the exchange also dived into the prediction market niche by partnering with Kalshi and launching a new platform for political and major global events, with contracts working basically the same as any other prediction platform out there.
After hours, shares fell about 2% but remained up roughly 260% year to date. The company’s market capitalisation now stands at about US$126 billion (AU$194.04 billion).
Related: BlackRock Expands Bitcoin Bet with Australia’s First iShares Bitcoin ETF