Robinhood Markets experienced a sharp decline of over 15% in aftermarket trading on Wednesday following the release of its Q3 2024 financial results. This revealed a dip in both revenues and net profit compared to a record-setting Q2.
For the third quarter, Robinhood reported revenues of $637 million, marking a 36% increase year-over-year from Q3 2023. However, this figure represents a 7% decrease from the previous quarter’s record of $682 million. The company’s net profit also fell, coming in at $150 million, down from $188 million in Q2.
Robinhood Q3 2024 Earnings: Revenues Dip, Shares Plummet 15%
Before the results were announced, Robinhood shares had closed at a 52-week high of $28.21. Also, in after-hours trading, the price dropped to approximately $25, reflecting a decline of 11.4%.
CEO and co-founder Vlad Tenev expressed pride in the company’s Q3 performance. They highlight recent product launches such as Robinhood Legend, a new desktop offering, and upcoming features like index options, futures, and a realized profit and loss tool. Tenev noted, “We have a ton of momentum, and we’re just getting started.”
CFO Jason Warnick echoed this sentiment, stating, “Q3 was another strong quarter, as we drove 36% year-over-year revenue growth and dropped most of that to the bottom line.” He emphasized the company’s focus on delivering profitable growth as it heads into 2024.
Robinhood’s revenue breakdown showed significant growth in transaction-based revenues, which surged 72% year-over-year to $319 million. This growth was primarily fueled by options revenue. This reached $202 million, and a notable increase in cryptocurrency revenue, which soared by 165% to $61 million.
Operating expenses, meanwhile, decreased by 10% year-over-year to $486 million, reflecting the company’s commitment to expense control amidst its strategic growth initiatives.
Also, stay updated with the Latest Broker News.