Robinhood Q2 Earnings Highlights: Revenue Beat, Brokerage Reaches Profitability, Revenue Per User Rises And More

Stock and crypto trading platform company Robinhood Markets Inc HOOD reported second-quarter financial results after the market close Wednesday. Here are the key highlights.

What Happened: Robinhood reported second-quarter revenue of $486 million, which was up 53% year-over-year and up 10% quarter-over-quarter. The revenue total beat a Street estimate of $475 million, according to data from Benzinga Pro.

The company reported transaction revenue of $193 million, which was down 7% quarter-over-quarter. Cryptocurrency related revenue was down 18% quarter-over-quarter to $31 million. Equity related revenue was $25 million and down 7% year-over-year. Net interest revenue was up 13% year-over-year to $234 million.

Robinhood reported second-quarter earnings per share of 3 cents, which beat a Street estimate of a loss of 2 cents per share.

The company reported 23.2 million funded accounts, which was up by around 70,000 sequentially.

Monthly active users were 10.8 million for the second quarter, down by around 1 million accounts.

The company ended the quarter with $89 billion assets under custody, which was down 13% quarter-over-quarter.

Robinhood saw average revenue per user of $84 in the second quarter, up from $77 in the first quarter.

The company ended the quarter with $5.8 billion in cash.

“In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company,” Robinhood CEO Vlad Tenev said.

“Guided by our bold product roadmap we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better."

The company's profitable turn was highlighted by Chief Financial Officer Jason Warnick.

“Reaching GAAP profitability is a testament to the work our team has done to transform the business and better position Robinhood to drive shareholder value,” Warnick said.

“With five consecutive quarters of revenue and Adjusted EBITDA growth, we’re continuing to drive efficiency across our operations while investing in customer experience. Looking ahead, we remain focused on delivering for customers and growing our business.”

Related Link: Trading Strategies For Robinhood Stock After Q2 Earnings

What’s Next: The company said its full-year expense outlook improved after the second -quarter results.

The company now sees full-year expenses in a range of $2.33 billion to $2.41 billion.

Highlights from the company for the future include strong adoption of its IRA program, with around $1 billion in assets.

The company also said its Robinhood Gold program with a 4.9% yield has seen balances more than double since the start of the year, for a total of $11 billion.

In July, Robinhood launched its 24-hour trading market for select stocks and ETFs.

The company said it is working to complete its purchase of 55 million shares owned by Emergent Fidelity Technologies.

HOOD Price Action: Robinhood shares were trading 4.35% lower to $11.90 in Wednesday's after-hours session. 

Read Next: Robinhood Shifts From Short Term Trades To Long Term Stability, Begins Offering IRAs 

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