Shares of Robinhood (HOOD) surged 10.75% in after-hours trading on Wednesday, following the release of its strong fourth-quarter 2024 results. The trading platform reported a record net income of $916 million, or $1.01 per diluted share, for the quarter ended December 31st. This marks a massive increase compared to a net income of $30 million, or $0.03 per diluted share, in the same period a year ago.
Robinhood's stellar performance was primarily driven by a boom in cryptocurrency trading volumes on its platform. According to the company's earnings release, "Crypto notional volumes increased over 400 percent year-over-year, reaching $71 billion in Q4 2024." The surge in crypto trading activity, fueled by the post-election market frenzy, significantly boosted Robinhood's transaction-based revenues to $672 million, more than tripling year-over-year.
Moreover, Robinhood's net interest revenues climbed 25% year-over-year to $296 million, primarily driven by growth in interest-earning assets. The company's total net revenues for the quarter jumped 115% to $1.01 billion, exceeding analysts' expectations.
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