(Bloomberg) – Robinhood Markets Inc. reported that online trading companies have more than doubled due to crypto market transactions related to the US presidential election.
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Revenue rose to $1.01 billion in the fourth quarter, with a three-month Wall Street Analyst estimate of $940.8 million. Cryptocurrency revenues also surpassed expectations, up over 700 million, up $358 million.
“We hit the gas in product development in 2024,” CEO Vlad Tenev said in a statement Wednesday. “There is a great opportunity ahead of us as we are working to buy, sell or hold financial assets and enable financial transactions to be carried out through Robinhood.”
The company’s shares skyrocketed more than 15% in extended New York transactions.
Crypto-friendly
The enthusiasm for cryptocurrency trading was a key factor in Robinhood’s revenue growth. Until the November election, President Donald Trump has pledged to become “President of Pro Bitcoin” and has remained true to that statement so far, and last month, presidential orders to establish a working group on digital assets It has signed. In the fourth quarter, Bitcoin was traded for over $100,000 after a month of rally on Election Day.
Robinhood has matured since the early days of memes as the Menlo Park, California-based company offers retired products but continues to drive boundaries. After the election-focused event contracts began, Robin Hood dipped his toes into a sporting event contract, particularly with the Super Bowl in mind. A day later, the company pulled out the offer after disclosing it had received a formal request for suspension from the Commodity Futures Trading Commission.
Announcement of a comprehensive event contract platform is “Top Of Mind” for the company, Tenev said in a call with analysts on Wednesday. He said Robinhood is not only a leader in the field, but also plans to promote clarity across the industry.
The company’s results recorded five consecutive quarters of positive net profits, with Robin Hood reporting profits of $916 million, or $1.01 over the period. This year’s adjusted operating expenses and stock-based compensation combined with Robinhood’s outlook ranges from $2 billion to $2.1 billion.
Chief Financial Officer Jason Warnick said in a call Wednesday that revenue growth will rise again in double digits this year.
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