Robinhood stock popped Thursday after the mobile broker late Wednesday announced Q2 results with record earnings and revenue.
Robinhood reported earnings of 21 cents per share, up 18 cents from last year. Revenue leapt 40% to a record $682 million.
FactSet expected earnings of 16 cents per share on $640 million in revenue.
Transaction-based revenue increased 69% to $327 million, primarily driven by a 43% jump in options revenue and a 161% spike in cryptocurrency revenue. Robinhood's net interest revenue increased 22% due to higher securities lending activity and short-term interest rates.
Assets under custody increased 57% from last year to $139.7 billion. Monthly active users rose 9% to 11.8 million, while the company's average revenue per user grew 35% to $113. However, Robinhood's users fell short of FactSet estimates for 13.45 million.
Robinhood Gold, the premium subscription service, saw number of subscribers rise 61% to 2 million.
Net deposits also increased to a record $13.2 billion, with an annualized growth rate of 41%.
Robinhood Stock
Robinhood stock jumped 3.6% Thursday. Shares rallied more than 7% premarket Thursday after easing a fraction during Wednesday trade.
Shares are testing support at their 200-day moving average after a sharp drop on Friday.
HOOD has been in a steep downtrend since mid-July. Still, Robinhood stock is up 39% in 2024.
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