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Robinhood Markets (Nasdaq: HOOD) generated total net revenue of $471 million in the fourth quarter of 2023, an increase of 24% year-over-year. The figure topped the market estimate of $457 million, leading to a sharp rise in the brokerage's shares in after-hours trading.
Between October and December, Robinhood generated net income of $30 million, or $0.03 in earnings per share. It went from a loss of $85 million in the third quarter of 2023 to a loss of $166 million in the corresponding quarter of the previous year.
As announced yesterday (Tuesday), Robinhood's revenue was increased due to higher net interest, trading and other revenue sources. Its net interest income for the three months jumped 4 percent to $236 million.
Additionally, the brokerage's trading revenue increased 8 percent to $200 million. Robinhood highlighted that while options trading remains its revenue driver at $121 million, down 2%, cryptocurrency revenue increased significantly by 10% to $43 million. Stock revenue on the platform also increased by 19% to $25 million.
The platform generated $35 million in revenue, a 30% increase, from other sources including Gold and Sherwood Media subscriptions.
“2023 was a strong year, as our product velocity continued to accelerate, our commercial market share increased, and we began to expand globally,” said Vlad Tenev, CEO and co -founder of Robinhood.
Investors reacted quickly to Robinhood's results, with the company's publicly traded stock price jumping more than 10% during the after-hours trading session.
Solid customer metrics
Robinhood's customer metrics grew significantly in the final quarter of 2023. The number of funded customers on the platform jumped by 420,000 year-over-year to 23.4 million. However, the number of monthly active users decreased by 4 percent to 10.9 million.
Additionally, assets under custody increased 65 percent to $102.6 billion. Net deposits on the platform also reached $4.6 billion, an annualized growth of 21%. Average revenue per user increased 23 percent to $81.
“We are off to an even better start in 2024, as we have already attracted more funded customers and net deposits in the first half of the first quarter than in the entire fourth quarter of 2023,” Tenev added.
Robinhood Markets (Nasdaq: HOOD) generated total net revenue of $471 million in the fourth quarter of 2023, an increase of 24% year-over-year. The figure topped the market estimate of $457 million, leading to a sharp rise in the brokerage's shares in after-hours trading.
Between October and December, Robinhood generated net income of $30 million, or $0.03 in earnings per share. It went from a loss of $85 million in the third quarter of 2023 to a loss of $166 million in the corresponding quarter of the previous year.
As announced yesterday (Tuesday), Robinhood's revenue was increased due to higher net interest, trading and other revenue sources. Its net interest income for the three months jumped 4 percent to $236 million.
Additionally, the brokerage's trading revenue increased 8 percent to $200 million. Robinhood highlighted that while options trading remains its revenue driver at $121 million, down 2%, cryptocurrency revenue increased significantly by 10% to $43 million. Stock revenue on the platform also increased by 19% to $25 million.
The platform generated $35 million in revenue, a 30% increase, from other sources including Gold and Sherwood Media subscriptions.
“2023 was a strong year, as our product velocity continued to accelerate, our commercial market share increased, and we began to expand globally,” said Vlad Tenev, CEO and co -founder of Robinhood.
Investors reacted quickly to Robinhood's results, with the company's publicly traded stock price jumping more than 10% during the after-hours trading session.
Solid customer metrics
Robinhood's customer metrics grew significantly in the final quarter of 2023. The number of funded customers on the platform jumped by 420,000 year-over-year to 23.4 million. However, the number of monthly active users decreased by 4 percent to 10.9 million.
Additionally, assets under custody increased 65 percent to $102.6 billion. Net deposits on the platform also reached $4.6 billion, an annualized growth of 21%. Average revenue per user increased 23 percent to $81.
“We are off to an even better start in 2024, as we have already attracted more funded customers and net deposits in the first half of the first quarter than in the entire fourth quarter of 2023,” Tenev added.
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