In This Article:
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Revenue: Over $1 billion in Q4; over $3 billion for the full year 2024, up 58% from 2023.
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Adjusted EBITDA: $1.4 billion for 2024, up over 160% with a margin of 48%.
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Earnings Per Share (EPS): $1.56 for the full year 2024.
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Net Deposits: Over $50 billion, nearly 50% growth rate.
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Gold Subscribers: Record of 2.6 million, 80% growth year over year; closing in on 3 million in early 2025.
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Gold Subscription Revenue: Annualized revenue above $170 million.
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Adjusted Operating Expenses and Share-Based Compensation (OpEx and SBC): $1.94 billion for 2024, up 7% year over year.
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Share Buyback Program: More than a quarter of the $1 billion program completed.
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January Trading Volumes: Equities, options, and crypto trading volumes up double to triple digit growth rates year over year.
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Legend Revenue: Annualized trading revenue up to $50 million.
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Index Options Revenue: Annualized trading revenue up to $15 million.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Robinhood Markets Inc (NASDAQ:HOOD) achieved over $1 billion in quarterly revenue for the first time, contributing to a record-breaking year with over $3 billion in total revenue.
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The company saw a significant increase in market share, with a 30% year-over-year growth in both equities and options.
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Robinhood Gold subscribers reached a record of 2.6 million, marking an 80% growth year-over-year, with expectations to reach 3 million soon.
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The launch of new products like Robinhood Legend and Robinhood Derivatives has been well-received, contributing to strong revenue growth.
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The company maintained a disciplined approach to expenses, achieving a 48% adjusted EBITDA margin and a positive net income for the first time.
Negative Points
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Regulatory clarity is still needed for expanding crypto offerings, which could delay the rollout of new tokens and services like staking.
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The rollout of the Robinhood Gold credit card is progressing cautiously, which may slow down potential growth in this area.
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There is a risk of increased competition in the crypto space, which could impact Robinhood's market position and pricing strategy.
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The company's ambitious growth plans require careful resource allocation, which could strain existing resources and impact execution.
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Potential credit losses and regulatory charges are not included in the current financial outlook, which could affect future financial performance.
Q & A Highlights
Q: When will the Gold credit card be available to a broader audience? A: Vladimir Tenev, CEO, stated that the Gold credit card will be available to a broader audience very soon. The demand has been high due to its attractive features like 3% cash back and digital functionalities. Currently, there are over 100,000 cardholders, and the company plans to double this number in the coming months.