A boom in the trading of cryptocurrencies has propelled Robinhood Markets (HOOD) to
record first-quarter financial results.
The online brokerage announced first-quarter earnings per share (EPS) of $0.18 U.S. on record revenue of $618 million U.S.
The results beat Wall Street forecasts that had called for earnings of $0.06 U.S. a share and revenue of $553 million U.S.
A year ago, Robinhood reported a Q1 loss of $0.57 U.S. per share on revenue of $441 million U.S.
The company attributed the latest results to a rise in crypto trading on its platform during Q1, as well as a steady increase in the price of Bitcoin (BTC), which hit an all-time high of just under $74,000 U.S. on March 14.
Cryptocurrency transaction revenue more than tripled in Q1 from a year earlier, said the company.
Robinhood also said that its assets under custody increased 65% year over year during the year’s first quarter to $129.60 billion U.S. thanks to higher stock and crypto valuations.
The company reported net deposits of $11.20 billion U.S. for the quarter and $23.90 billion U.S. for the past year.
The company also added more subscribers in Q1 to its Robinhood Gold service that provides investors with advanced tools and market data.
Robinhood said it had 1.7 million Gold subscribers at the end of Q1, up 42% from a year ago.
The stock of Robinhood Markets is up 6% on news of the strong Q1 results. In the last 12 months, the company’s share price has risen 95% to $17.85 U.S.
