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Shares of Robin Hood rose in prolonged trading on Wednesday afternoon after the retail broker reported stronger-than-expected first-quarter results.
Robinhood reported first-quarter net income of $157 million, or 18 cents per share. That’s a positive development in comparison with the identical period last 12 months, when the corporate reported a net lack of $511 million, or 57 cents per share.
According to analysts surveyed by LSEG, Robinhood’s results compare to Wall Street estimates as follows:
- Earnings per share: 18 cents versus 6 cents expected
- Revenue: $618 million versus expected $549 million
The company said each earnings per share and revenue figures were records for the corporate. The stock rose greater than 5% in after-hours trading.
Robinhood grew in popularity through the Covid-19 pandemic in 2020 and 2021, but has since seen user activity and revenue reflecting the performance of the broader market. Stocks and cryptocurrencies rose in the primary quarter, which likely helped the corporate’s results.
According to the corporate, cryptocurrency transactions accounted for $126 million in revenue within the quarter. Regulatory uncertainty has clouded the long run of this business. Robinhood announced on Monday that the U.S. Securities and Exchange Commission has issued a Wells Notice to the corporate indicating possible legal enforcement actions in the corporate’s cryptocurrency business.
Dan Gallagher, Robinhood’s chief legal, compliance and company affairs officer, said in a blog post that the corporate was “disappointed” by the SEC’s decision and still believes the crypto assets on its platform aren’t legal securities .
Robinhood said the variety of funded customers increased by 810,000 year-over-year to 23.9 million. According to the press release, assets under custody increased 65% 12 months over 12 months to $129.6 billion.
Before Wednesday’s earnings release, shares of Robinhood were up nearly 40% 12 months to this point.
Read the complete earnings release here.
Correction: An earlier version of the story misstated the date of Robinhood’s quarterly report.
