Key Highlights:
- Robinhood exceeded Q4 2024 earnings expectations, with revenue surging 115% year-over-year.
- The increase was largely attributed to a 700% rise in transaction-based revenue from cryptocurrency trading.
- Competitor Coinbase is set to announce its earnings on Thursday and is anticipated to report significant trading volumes.
Popular trading platform Robinhood (HOOD) outperformed its earnings and revenue projections for the fourth quarter, a performance that could bode well for its peer Coinbase (COIN). Robinhood’s revenue skyrocketed 115% from the previous year, reaching $1.01 billion, outperforming analysts’ estimates of $945.8 million according to FactSet data. This spike was primarily due to a 200% increase in transaction-based revenue, driven significantly by a 700% rise in cryptocurrency earnings, as indicated in a regulatory statement.
The latest results suggest a favorable outlook for Coinbase, which is due to release its earnings soon. Both companies target a similar clientele and generate a substantial portion of their income through trading fees. Analysts expect COIN to deliver one of its highest trading volumes since Q4 2021, buoyed by the election of crypto-enthusiast President Donald Trump, which significantly boosted cryptocurrency values last November.
Analysts project that Coinbase will report revenue of $1.8 billion, an increase from $1.26 billion in the previous quarter, alongside an exchange volume of $195.9 billion, up from $185.3 billion.
Robinhood revealed earnings per share of $1.01, well above the average estimate of $0.42. As a result, Robinhood’s shares saw an increase of over 5% in after-hours trading, while Coinbase’s stock rose about 0.3%.
