Trading app Robinhood’s decision to introduce cryptocurrency transactions to its platform is paying off big time. The company shared its fourth-quarter earnings on Wednesday and reported record profit and revenue.
Robinhood reported revenue of $1.01 billion in Q4, marking a 115% year-over-year increase and easily cleared Wall Street’s estimates of $940.8 million. Its net income came at $916 million or $1.01 in diluted earnings per share compared to $30 million or $0.03 in diluted EPS in the same period last year.
Crypto was a big reason for Robinhood’s strong quarter. Cryptocurrency accounted for $358 million in revenue, jumping by 700% on a year-over-year basis.
“We hit the gas on product development in 2024,” Robinhood’s CEO Vlad Tenev said in a statement. “We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood.”
Strong results in Q4 provided a major boost for the company’s shares. Robinhood’s stock ended the day with a 4.82% gain, closing at $55.91 per share for a 41.76% jump since the beginning of the year. The stock continued to soar in extended trading, gaining a further 14.65% and trading above $60 per share.