Robinhood’s growth continues: 2024 ends on a record high
Overview
Robinhood closed 2024 with record-breaking financial performance, reporting substantial growth across revenues, net income, and customer engagement.
CEO Vlad Tenev emphasized the company’s rapid product innovation, highlighting the expansion into active trading platforms, the launch of the Robinhood Gold Card, and international expansion in the UK and EU. CFO Jason Warnick reinforced the company’s strong momentum heading into 2025, citing record highs in assets under custody, net deposits, and profitability.
Q4 2024 vs. Q4 2023:
- Total net revenues increased to a value of $1.01bn (+115% YoY), marking a record quarter.
- Transaction-Based revenues was $672m (+200% vs. 2023), driven by crypto trading revenue of $358m (+700% vs. 2023), options revenue of $222m (+83% vs. 2023), and equities revenue of $61m (+144% vs. 2023).
- Net interest revenues was $296m (+25% vs. 2023), benefiting from increased interest-earning assets.
- Net income rose to $916m (up over 10x YoY), with a record diluted EPS of $1.01 (compared to $0.03 for Q4 2023).
- Total operating expenses increased slightly to $458m (+3% YoY), including a $55m benefit due to a reversal of an accrual as part of a regulatory settlement.
- Adjusted EBITDA rose to $613m (+300% YoY), reflecting operational efficiency and revenue expansion.
- Funded customers reached a level of 25.2m (+8% YoY), supported by increasing adoption of investment accounts.
- Assets Under Custody (AUC) almost doubled, to a value of $193bn (+88% YoY), driven by strong net deposits and market gains.
- Average Revenue Per User (ARPU) was $164 (+102% YoY), benefiting from higher trading volumes.
- Gold subscribers reached a record 2.6m (+86% YoY), highlighting increasing premium service adoption.
- Net deposits recorded a value of $16.1bn in Q4, with a 42% annualized growth rate relative to AUC.
Full-Year 2024 performance:
- Total revenue rose to $2.95bn (+58% YoY), fueled by a surge in transaction-based revenues, which recorded a value of $1.65bn (+110% YoY).
- Net income reached $1.41bn, or diluted EPS of $1.56, reversing a net loss of $541m, or diluted EPS of -$0.61 in 2023.
- Adjusted EBITDA was on a strong upward trend, reaching a value of $1.43bn (+167% YoY), demonstrating profitability improvements.
- Operating expenses decreased to $1.9bn (-21% vs. 2023), supported by disciplined cost management.
- Crypto trading volumes reached a total of $71bn in Q4 (+400% YoY), reinforcing Robinhood’s positioning in the digital asset space.
- The company also allocated $257m to buybacks, totaling 10.4m shares at an average price of $24.78.
Robinhood expects sustained momentum in 2025, driven by further expansion in crypto trading, active investing, and financial advisory services. The company anticipates continued revenue growth, particularly in transaction-based revenues from crypto and options trading, as market participation remains strong. Adjusted operating expenses and share-based compensation are forecasted at $2.0bn – $2.1bn, reflecting strategic investments in product innovation and global expansion. International growth remains a key focus, with plans to expand into Asia-Pacific and scale crypto services in Europe, tapping into high-growth markets. At the same time, Robinhood is actively managing regulatory considerations, ensuring compliance while introducing new products and services. Additionally, the company is set to expand its investment advisory business, completing the TradePMR acquisition to enhance offerings for registered investment advisors.
After the results were published, HOOD’s share price ended the trading week on a fairly strong upward trend, with a jump of approximately +17% compared to the previous week, which led to the continuation of the incredible growth of the last year, by over +365%.
Author: Ionuț-Adrian Lazar
