The first-quarter crypto trading volume of the well-known US-based stock trading application, Robinhood (HOOD), increased by 224% over the same period last year, reaching $36 billion.
The boost in crypto-related revenue amounted to $126 million, with crypto-based transactions being 232% higher than in the previous year, and overall transaction-based revenue reaching $329 million, growing by 59% compared to last year.
Q1 revenue of Robinhood at $618 million outweighed forecasts, hence the share price increased by 7%. The stock market was 3% higher than before closing in after-hours trading. The company also reported a 78% growth in cryptocurrency custody, bringing the total to $26.2 billion.
The outstanding performance of Robinhood in the crypto sector is reminiscent of other companies including Coinbase (COIN), which also posted good first-quarter results largely because of favorable crypto market conditions.
Although Robinhood was issued a Wells Notice on its crypto unit by the SEC, the company beat the sales and earnings estimates. The company’s stock jumped 7% in after-hours trading while Coinbase shares witnessed a small drop.
As CFO of Robinhood, Jason Warnick showed his disappointment about the Wells Notice, but Warnick assured that the customers were not affected and that the crypto arm of the company was still operating normally.
From the successful first quarter of Robinhood, which indicates an effective strategy of the company to expand crypto offerings, it is apparent that it has brought about considerable revenue growth and increased confidence among investors.
