Robinhood Q1 Earnings Highlights: Revenue And EPS Beat, 24-Hour Trading Launch Featuring Select Stocks Such As Tesla

Trading platform company Robinhood Markets Inc HOOD reported first-quarter financial results after the market close Wednesday. Here are the key highlights.

What Happened: Robinhood reported first-quarter revenue of $441 million, up 16% quarter-over-quarter. The total came in ahead of a Street consensus estimate of $424.5 million, according to data from Benzinga Pro.

The company reported a loss of 57 cents per share, which beat a Street estimate of a loss of 61 cents per share.

Transaction revenue totaled $207 million in the first quarter, which was up 11% year-over-year. Options revenue was $133 million, which was up 7% quarter-over-quarter. Crypto revenue was $38 million, down 1% quarter-over-quarter.

The company added 120,0000 funded accounts to end the quarter with a total of 23.1 million. Monthly active users were up 0.4 million in the quarter to 11.8 million.

The company ended the quarter with $5.5 billion in cash.

“We had a great start to the year in Q1, which is a testament to our relentless pursuit of innovation and the launch of the 24-hour market next week shows we’re not slowing down,” Robinhood CEO Vlad Tenev said.

Related Link: Trading Strategies For Robinhood Stock After Q1 Earnings

What’s Next: The company sees expenses for the full year totaling $2.345 billion to $2.485 billion, an improvement from prior guidance of a range of $2.375 billion to $2.515 billion.

The company applied for a Futures Commission license in March and expects to launch futures trading by the end of 2023 if approved.

Robinhood will launch a new 24-hour market trading next week, making the company the “first brokerage to enable customers to trade individual stocks at their convenience — 24 hours a day, 5 days a week.” The announcement came after the company laid out the goal of 24/7 trading recently. 

Under the new 24-hour market, Robinhood would offer trading from 8 p.m. ET Sunday to 8 p.m. ET Friday for 43 securities, according to a report from the Wall Street Journal. Stocks included will be Amazon.com, Inc. AMZN, Apple Inc AAPL and Tesla Inc TSLA, according to the report.

The new trading will roll out next week with all customers expected to have access by June.

“It’s the next step in evolving the market to how it should work, which is 24/7, and more like a piece of software rather than a brick-and-mortar institution that’s tied to U.S. east coast working hours,” Tenev told the WSJ.

The company is hoping to gain some increased engagement from investors it had during the COVID-19 pandemic, according to the report.

Robinhood will utilize trading platform Blue Ocean to complete orders from 8 p.m. to 4 a.m. ET.

“We’re continuing to ship aggressively, increase customer satisfaction, and deliver strong financial performance on the path to GAAP profitability,” Tenev said.

HOOD Price Action: Robinhood shares are up 4.08% to $9.07 in after-hours trading.

Read Next: Robinhood Customers Can Earn 4.65% APY On Idle And Uninvested Cash

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