Investing.com -- Robinhood reported Wednesday second-quarter results that topped Wall Street estimates spurred by a surge in cryptocurrency and options trading on its trading platform.

Robinhood Markets Inc (NASDAQ:HOOD) shares rose over 3% in premarket trading Thursday.

The company reported earnings of $0.21 per share on revenue of $682 million. Analysts were expecting earnings of $0.15 a share on revenue of $682M.

Revenue surged 40% in Q2 from a year earlier, driven by a 69% jump in the transaction revenue, with crypto and options transaction revenue leading the gains, up 161% and 43% respectively.

Monthly active users increased 9% year-over-year to 11.8 million.

Robinhood reported record net deposits of $13 billion, up 41% year-over-year and above its long-term target of 20%.

Looking ahead, the company said its operating expenses for the full year 2024 are unchanged at $1.85 billion to $1.95 billion.

In their post-earnings note, analysts at Mizuho reiterated an Outperform rating on Robinhood stock.

"In our view, despite already strong momentum, HOOD is still in its early stages of disrupting the Brokerage industry and has plenty of runway from here."

The investment bank also raised both its top and bottom line estimates for fiscal years 2024 and 2025.

Yasin Ebrahim contributed to this report.

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