Robinhood (NASDAQ:HOOD) stock jumped nearly 15% in after-market trading on Tuesday, Feb. 13 after the company announced better-than-expected Q4 earnings. The financial services platform reported that its quarterly revenue hit $471 million, beating Wall Street expectations of $456.8 million by 3.1%. This represented a 23.9% increase from $380 million in the previous fiscal year.
Earnings per share (EPS) also surprised to the upside. The online brokerage notched EPS of 3 cents, beating expectations of a 1-cent loss.
“2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally,” said Vlad Tenev, CEO and co-founder of Robinhood. CFO Jason Warnick echoed these sentiments, highlighting the company’s commitment to “delivering profitable growth” throughout 2024.
This comes as surprisingly positive news for the online trading platform. Crypto platforms have struggled in the wake of FTX’s collapse in November 2022. On Feb. 7, crypto firm Bakkt (NYSE:BKKT) issued a going concern notice after efforts to lure back investors failed. Robinhood itself has seen a similar stagnation in its crypto business. In the fourth quarter, the firm’s transaction-based crypto revenues rose just 10%. Monthly active users also decreased 4% to 10.9 million.
Nevertheless, rising interest rates have more than offset this decline. Net interest revenues at Robinhood increased 41% year over year to $236 million and make up half of the company’s sales. The company now expects full-year sales to be in the range of $1.85 billion to $1.95 billion, a reasonable 2% increase from this excellent quarter.
On the date of publication, Thomas Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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