Robinhood reported one of its strongest quarters yet, with Q1 revenue rising 50% year-over-year to $927 million and net income more than doubling to $336 million.
Robinhood reported first quarter results after Wednesday’s closing bell. Earnings per share of 37 cents was up 106% from last year while revenue of $927 million was up 50% year-over-year. The company saw record net deposits of $18 billion and reached new highs in Robinhood Gold subscribers, which climbed 90% to 3.2 million.
The trading platform also continued to roll out new products, including AI-powered financial planning tools and an expanded prediction markets hub. Robinhood closed its acquisition of TradePMR and is on track to complete its purchase of Bitstamp later this year. The board expanded its share buyback program by $500 million to $1.5 billion, citing confidence in long-term growth.
Analyst: no longer a ‘joke’
Mizuho analyst Dan Dolev praised Robinhood’s performance during a CNBC interview following the report. He described the report as “one of their best quarters on record,” noting the company’s all-time highs in funded accounts and revenue. The stock traded lower by 4% following the report, suggesting the dip represents “a buying opportunity.” Robinhood’s stock recovered from its morning lows of $46.53 and traded at $48.64 at press time, down less than 1%.
“They’re getting into Asia, they’re getting into Europe,” the analyst said. “Their product velocity is the best one I’ve ever seen with Robinhood Gold. Pretty much every quarter there is something new and so I think over time what you are going to see is that they are not going to bifurcate from the volatility, but they’re going to fare better than the volatility.”
Robinhood deserves credit for its aggressive push into what Dolev describes as a $600 billion total addressable market. The company is seeing strong results, notably from higher net-worth clients that typically flock to legacy platforms like Schwab and Interactive Brokers.
“Three years ago everyone thought [Robinhood] was a joke for millennials,” Dolev said. “And now people are taking them really seriously. And I think their competitors are getting worried about them taking assets away.”
