• Robinhood saw $1.3 billion in net transfers in the fourth quarter.
• The company's stock surged 15% after it reported 115% revenue growth, beating expectations.
• Robinhood faced backlash from lawmakers and customers during the 2021 meme stock saga.

The company behind 2021's meme stock sage says it is now attracting serious investors.

On Robinhood's fourth-quarter earnings call on Wednesday, Vlad Tenev, the CEO, said that the stock-trading app is now competing with established brokerages like Fidelity and that customers are making big investments on its platform.

"Service quality improvements have led to people being comfortable moving in hundreds of thousands of dollars into Robinhood," Tenev said. "Now it's becoming a destination for people's serious money."

Tenev said Robinhood finished the fourth quarter with $1.3 billion in net transfers into the platform, more than any other brokerage.

The company's fourth-quarter revenue climbed 115% from the same period in 2023 to $1.01 billion, beating Wall Street's expectations of $940.8 million.

Robinhood's stock surged over 15% in after-hours trading.

The company, which went public in July 2021, is recovering from the reputational damages and criticism it faced during the pandemic. It was a major player in the meme stock mania of January 2021, which involved throngs of inexperienced investors using the app and others like it to buy stocks of companies like GameStop and AMC Entertainment.Robinhood faced backlash for suddenly restricting trading on these meme stocks and for gamifying short-term investing, which critics say poses serious financial risks. Lawmakers and billionaire Warren Buffett have accused the company of treating the stock market like a casino.

In 2021, Tenev and Wall Street hedge fund managers were questioned in a Congressional inquiry into the GameStop trading event.

Robinhood's lawyers argued that the app had to set trading limits because it was being prompted by its clearinghouses to put up billions in collateral. In 2023, a federal judge dismissed the lawsuit, saying that customer agreements allowed the company to limit transactions.

Tenev apologized to Congress for his company's handling of the trading halt. Following the hearing, the company said it would expand its live phone support and double the number of representatives.

Robinhood's stock has gained 317% in the past year owing to growth of its premium subscription tier and relaxed cryptocurrency regulations under President Donald Trump.

Fidelity did not respond to a request for comment.