Robinhood (HOOD) on Wednesday reported a 339% year-over-year improve in third-quarter crypto buying and selling income, constructing on momentum from earlier this 12 months because the buying and selling app leans deeper into digital property and world markets.
The corporate processed $80 billion in crypto buying and selling quantity through the quarter, with crypto-related income of $268 million, up from $61 million in the identical interval final 12 months. Adjusted earnings per share (EPS) was $0.61, in comparison with the consensus estimate of $0.53. Complete web income got here in at $1.27 billion, in comparison with expectations of $1.21 billion.
The inventory worth fell 2% in after-hours buying and selling, however stays up about 260% year-to-date.
“The third quarter was one other sturdy quarter of worthwhile progress. We proceed to diversify our enterprise and add two further enterprise traces, Prediction Markets and Bitstamp, producing roughly $100 million or extra in annual income,” mentioned CFO Jason Wernick. “And the fourth quarter in October acquired off to a powerful begin, with report month-to-month buying and selling volumes throughout shares, choices, prediction markets and futures, and report margin balances.”
The corporate now has a market capitalization of $126 billion, surpassing rivals resembling Coinbase (COIN), which reported sturdy outcomes final week.
The sturdy efficiency follows a sequence of strikes to deepen Robinhood’s give attention to cryptocurrencies. The corporate acquired Bitstamp earlier this 12 months, increasing its regulatory presence and person base in additional than 50 nations.
