U.S.-based brokerage Robinhood (HOOD), has reported a significant increase in its trading revenue for the third quarter. The company announced that the trading revenue had increased by 129% compared to the same period last year and reached $730 million. As a result of this, the firm’s total revenue reached $1.27 billion, which is $0.08 billion more than the analysts’ estimated value of $1.19 billion, and the earnings per share recorded were $0.61, which is $0.08 higher than the forecast made by CNBC.
The company decided to report its earnings showing an increase of over 300% in Q3 to $268 million and that this segment had become a main driver of the growth in the transaction-based income. At the same time, options trading — Robinhood’s largest revenue segment — was up by about 50% to $304 million, and equity trading revenue increased by 132% to $86 million.
Jason Warnick, the Chief Financial Officer, emphasized the firm’s ongoing profit-making and business diversification in the quarter in question.
“Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding Prediction Markets and Bitstamp, which are generating $100 million or more in annualized revenues,” Warnick stated in the release.
One of the main factors in Bitstamp’s, Robinhood’s acquisition, which was completed in June, can be seen in the expansion of the company’s crypto footprint, especially in Europe. With this acquisition, Robinhood was able to launch crypto perpetuals throughout the EU and renew its international position in the digital asset markets. The company’s move to different markets has been a major factor in the company’s solid revenue performance.
Firm emphasis was also placed by the company on the significant uptick in user engagement. Users with funded accounts increased by 2.5 million year-over-year, hence the number reached a record 26.8 million in the third quarter of the year. Total platform assets were up almost 120% to $333 billion, which is a clear indication of growing investor participation in a broad crypto market rebound.
Robinhood (HOOD) shares were up 4.15% on Wednesday after the quarterly results were released. The rally was a clear sign of the company’s accelerating dominance in crypto trading and expanding influence in global financial markets, supported by new product offerings such as Stock Tokens, a collaboration with Arbitrum that mirrors U.S. equities across Europe.
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