Robinhood CEO and Co-Founder Vlad Tenev highlighted the active implementation of the company's product development strategy, which led to record net deposits and the number of Gold subscribers. He also highlighted the significant increase in client interest in Robinhood's Gold Card.
Robinhood CFO Jason Warnick highlighted the company's strong revenue and earnings growth in the first quarter of 2024, despite increased investments in marketing and development.
"In the first quarter, we set records for quarterly revenue, net income, and earnings per share, even as we increased our investments in marketing and growth," Warnick said.
First quarter 2024 results:
- Total net income increased by 40% year over year to $618 million.
- Transaction revenue increased 59% to $329 million, with cryptocurrency, options, and equity revenue contributing significantly to the growth.
- Net interest income increased by 22% to $254 million.
- Other revenues increased 35% to $35 million, primarily due to higher Gold Level subscription revenues.
- Net income was $157 million, or $0.18 per share, compared with a loss of $511 million, or $0.57 per share, in the year-ago quarter.
- Total operating expenses decreased 52% to $460 million, primarily due to the absence of the 2021 Founders Award.
- Adjusted operating expenses increased 13% to $398 million, primarily due to increased investments in marketing and growth.
- The number of customers increased by 810,000 year-over-year to 23.9 million.
The company anticipates increased investments in new product development, features, and international expansion, as well as improved operational efficiencies. Projected total operating expenses for 2024 are expected to be in the range of $1.85 billion to $1.95 billion.
Robinhood noted that actual results could vary depending on a number of factors, including changes in the number of clients, marketing effectiveness, and risk management.
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