Robinhood Q2 Earnings Highlights: Revenue Beat, EPS Beat, Crypto Revenue Up 161% Year-Over-Year, Gold Subscribers Hit 2 Million

Brokerage platform Robinhood Markets HOOD reported second-quarter financial results after the market close Wednesday.

Here are the key highlights.

What Happened: Robinhood reported second-quarter revenue of $682 million, up 40% year-over-year. The revenue total beat a Street consensus estimate of $643.3 million, according to data from Benzinga Pro.

Transaction revenue was $387 million in the quarter, up 69% year-over-year. Of this total, options revenue was $182 million (+43% YOY), cryptocurrency revenue was $81 million (+161% YOY) and equities revenue was $40 million (+60% YOY).

Net interest revenue of $285 million was up 22% year-over-year. The company said other revenue totaled $70 million, up 19% year-over-year, led by Gold subscription revenue.

Robinhood Gold subscribers totaled 2 million at the end of the quarter, up by 750,000 accounts and 61% year-over-year.

The company reported earnings per share of 21 cents in the second quarter, which beat a Street consensus estimate of 15 cents per share.

Robinhood said it had record net deposits of $13.2 billion in the quarter, for an annualized growth rate of 41%. The company had $139.7 billion in assets under custody at the end of the quarter, up 57% year-over-year.

Funded customers amounted to 24.2 million at the end of the quarter, an increase of 1 million.

"This quarter, we kept up the pace with rapid product launches and a relentless drive to provide top value for our customers," Robinhood CEO Vlad Tenev said.

"With Robinhood Gold reaching 2 million subscribers, we're witnessing the flywheel accelerate."

Chief Financial Officer Jason Warnick said he's encouraged by the progress Robinhood is making.

"In Q2, we set new quarterly records for revenues and earnings per share as we continue to focus on delivering another year of profitable growth," Warnick said.

Read Also: Robinhood Q2 Earnings Preview: 24-Hour Trading, Crypto, Funded Accounts In Focus; Analyst Sees ‘Favorable’ Environment

What's Next: Robinhood said its outlook for non-GAAP combined adjusted operating expenses and SBC (stock-based compensation) is in a range of $1.85 billion to $1.95 billion.

The 2024 expense plan includes new products, features and international expansion.

A conference call will be conducted Wednesday night, as linked below.

HOOD Price Action: Robinhood shares are down 1% to $16.96 in after-hours trading Wednesday versus a 52-week trading range of $7.91 to $24.88.

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Photo courtesy of Robinhood.