Popular trading platform Robinhood (HOOD) said in a statement that crypto revenue rose 10% year-on-year to $43 million in the fourth quarter as more users traded cryptocurrencies. . This could bode well for fellow crypto trading platform Coinbase (COIN), where trading volume is one of the main drivers of revenue.
The company said in a presentation that the notional amount of cryptocurrency trades it handles increased by 89% compared to the previous quarter due to increased trading volumes from more customers.
The increase in volume is not surprising, as prices in the digital asset market have soared on optimism that a spot Bitcoin exchange-traded fund (ETF) will be approved in the US (approval could take place in January). It was realized).
Robinhood said its transaction-based revenue rose 8% year over year in the quarter, driven primarily by crypto trading. Coinbase reports earnings on Thursday, and all else being equal, we could see a similar result in trading volume. COIN stock rose slightly in post-market trading on Tuesday.
Robinhood also expects to gain more crypto trading market share and expand internationally this year.More recently, it has been I started letting Customers in the European Union trade cryptocurrencies on its platform.
“2023 will see us continue to accelerate as our product development velocity continues to accelerate, our trading market share increases, and we begin to expand globally,” Robinhood co-founder and CEO Vlad Tenev said in a statement. It was a good year,” he said. “And we are off to an even better start in 2024, as we have already brought in more funding customers and net deposits through the first half of the first quarter than we had in the entire fourth quarter of 2023. ” he added.
The trading platform also reported overall revenue of $471 million in the fourth quarter, beating analysts' average estimate of $454.7 million, according to FactSet data. Earnings per share, on the other hand, came in at $0.03, beating expectations for a loss of $0.01 per share.
The company's stock rose about 15% on Tuesday after the earnings release. For the year, stocks fell nearly 7%, compared with a 4.4% gain for the S&P 500.
