According to Robinhood’s Q3 2024 financial release, published on Wednesday, the finance firm soared in net deposits, revenues, net income, assets under management (AUM), and crypto trading volume despite the volatile market.
Robinhood also launched newer features, including the Robinhood Legend, index options, and futures trading services, to its over 11 million active users during this period.
Crypto Boom Fuels Robinhood Success
As evident in the release, Robnihood’s crypto trading volume increased by 112% year-over-year, from around $6.79 billion to $14.4 billion in Q3 2024, highlighting growing investor interest in the crypto market.
Additionally, the firm’s crypto revenue jumped to $61 million year-over-year, a 165% surge in value from the previous year’s revenue of approximately $23.02 million.
The surge in Robinhood’s crypto revenue contributed significantly to the company’s transaction-based revenue growth, which soared by 72% year-over-year to $319 million. Other contributors were its options and equities revenue, which increased by 63% and 37%, to $202 million and $7 million within the previous year.
Moreover, Robinhood’s AUM surged by a whopping 76% year-over-year, from $86.5 billion to $152.2 billion. Notably, the company has attributed its significant increase to soaring crypto valuations and continuous net deposits from different investors.
“I’m really proud of our Q3 results and how smoothly our product engine is humming,” said Vlad Tenev, CEO and Co-Founder of Robinhood.
Following the release of Robinhood’s Q3 reports, the company’s shares dropped by almost 12% despite the significant upsurge it recorded.
Robinhood and Crypto in Q3
In recent months, the finance firm has made significant waves in the crypto industry, showing its stand in the industry as it tries to meet customers’ and investors’ demands.
In September, Robinhood Crypto agreed to settle the Californian authorities with $3,9 million to resolve any allegations of violating the country’s consumer protection laws.
After that, in October, the company introduced crypto deposits, withdrawals, and transfers to users within the European continent, giving them more flexibility and control over their holdings.
Meanwhile, with the U.S. presidential election knocking at the door, Robinhood has taken a big step into the event prediction market by launching election trading contracts, allowing eligible users to trade based on who they support to win.
