Latest Robinhood Earnings Report Q4 2024

Company Overview

Robinhood Markets, Inc. (NASDAQ: HOOD) is a prominent American financial services company that has revolutionized the brokerage industry with its commission-free trading platform. Founded in 2013 by Vladimir Tenev and Baiju Bhatt, Robinhood's mission is to democratize finance for all by providing accessible investment opportunities. The platform enables users to trade stocks, exchange-traded funds (ETFs), options, and cryptocurrencies without paying commissions. As of February 15, 2025, Robinhood's stock price is $65.28, with a market capitalization of approximately $57.7 billion. The company reported a significant milestone in 2024, achieving its first full year of profitability, driven by a surge in transaction-based revenues, particularly from cryptocurrency trading. To cater to a more diverse investor base, Robinhood has expanded its offerings to include futures trading, a desktop trading platform named "Robinhood Legend," and plans to introduce a credit card. With over 24.3 million funded accounts and $152 billion in assets under custody, Robinhood continues to innovate and adapt, aiming to provide comprehensive financial services to both novice and experienced investors.

Latest Robinhood Earnings Comparison (Q4 2024

Historical Robinhood Earnings Data

Robinhood Earnings Call Summary Q4 2024

Highlights

• Record Revenue Growth: Q4 revenue exceeded $1B for the first time (+100% YoY), bringing full-year revenue to $3B (+58% YoY).

• Profitability Milestone: Achieved $1.4B in adjusted EBITDA (+160% YoY) with an adjusted EBITDA margin of 48%.

• User Growth & Engagement: Gold subscribers surged 80% YoY to 2.6M, with attach rates exceeding 30% for new customers.

• Asset Expansion: Net deposits hit a record $50B in 2024, outpacing traditional brokerages.

• New Trading Products Launched:

  • Robinhood Legend (desktop platform for active traders) hit a $50M annualized revenue run rate within two months.

  • Index options trading reached $15M annualized revenue, growing steadily.

  • Futures trading & event contracts introduced, expanding derivatives offerings.

• Robinhood Gold Credit Card: Surpassed 100K cardholders, with plans to double in the next few months.

• Raised 2025 Guidance: Expected double-digit revenue growth, with adjusted OpEx & SBC between $2.0B and $2.1B.

Risks

While Robinhood experienced strong momentum, key challenges remain:

1. Regulatory & Compliance Risks: Expanding crypto offerings and derivatives (event contracts, staking) require regulatory clarity.

2. Market Sensitivity: Revenue from trading and interest income depends on market volatility and rate environments.

3. Credit Risk from Gold Card Expansion: As cardholder growth accelerates, loan performance and underwriting discipline will be critical.

4. Competition in Trading & Payments: Competing with Fidelity, Schwab, Coinbase, and fintech disruptors remains a challenge.

5. Stock-Based Compensation (SBC) Management: While SBC was reduced to 10% of revenue, further improvements are needed.

Opportunities

Robinhood is positioned for long-term growth with multiple expansion areas:

1. Scaling Robinhood Legend & Derivatives: Active trader adoption is driving strong week-over-week growth, with futures and event contracts adding new revenue streams.

2. Gold Subscription & Wallet Share Expansion: Gold card, advisory services, and lending products will drive higher monetization per user.

3. Crypto & Tokenization Initiatives: Accelerated token listings, staking expansion, and Bitstamp integration provide global crypto revenue potential.

4. International Expansion: U.K. options trading launched, with plans for European expansion and additional product rollouts.

5. AI & Personalization for Deposits & Trading: Robinhood plans to personalize financial incentives, deposit rewards, and engagement strategies for users.

Outlook

• Double-Digit Revenue Growth in 2025: Driven by new trading products, Gold adoption, and crypto expansion.

• Continued Profitability Expansion: Adjusted EBITDA expected to remain strong, with disciplined cost management.

• Strategic Growth in Crypto & Financial Services: Tokenization, stablecoins, and lending innovations will further position Robinhood as a financial super-app.

• Aggressive International Push: Expanding trading and crypto offerings across the U.K., EU, and global markets.

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.