Copyright coindesk
Robinhood (HOOD) on Wednesday reported a 339% year-over-year increase in third-quarter crypto trading revenue, extending momentum from earlier this year as the trading app leans deeper into digital assets and global markets. The company handled $80 billion in crypto trading volume during the quarter, posting $268 million in crypto-related revenue, up from $61 million in the same quarter last year. Adjusted earnings per share (EPS) came in at $0.61 against Street estimates for $0.53; total net revenue reached $1.27 billion versus forecasts for $1.21 billion. Shares were down 2% in after hours trading, but remain higher by about 260% year-to-date. “Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more business lines — Prediction Markets and Bitstamp — that are generating approximately $100 million or more in annualized revenues,” said CFO Jason Warnick. “And Q4 is off to a strong start in October, with record monthly trading volumes across equities, options, prediction markets, and futures, and new highs for margin balances.” The company now has a market capitalization of $126 billion, putting it above rivals like Coinbase (COIN), which reported strong earnings last week. The strong results follow a string of moves to deepen Robinhood’s crypto footprint. Earlier this year, the firm acquired Bitstamp, expanding its regulatory presence and user base in more than 50 countries.
