In the words of Vlad Tenev, the CEO at Robinhood, “Q2 is off to a strong start with April being our highest month of the year for Net Deposits and Gold Subscriber growth, and we’re excited to see strong interest from over 1 million customers in our Robinhood Gold Card.”
In its quarterly report, Robinhood Markets Inc, the parent firm of the crypto exchange Robinhood, revealed a substantial increase in total net revenues, soaring by 40% year-over-year to an impressive $618M. This growth in inflows fueled by various revenue streams includes a nearly 60% rise in transaction-based revenues to $329M.
With the crypto industry experiencing a boom since the beginning 2024, the company reported a net income of $157M, a significant turnaround from the net loss of $511 million recorded in Q1 2023. Additionally, the company also released a Gold Credit Card to offer discounts and cashbacks to Gold subscribers, with over 1M clients joining the waitlist for the card.
However, amidst these successes, there are a few areas of concern in liquidity. Robinhood’s cash and cash equivalents in Q1 2024 decreased to $4.7B from $5.5B in Q1 2023. Despite the decrease in total operating expenses, the company’s adjusted operating expenses increased by 13% year-over-year to $398M, primarily due to escalated marketing and growth investments.
