US-based Robinhood has released its financial report for the fourth quarter of 2023, which showed significant revenue growth.
For the period under review, total net revenue grew 24% year-on-year to $471 million, primarily due to increases in net interest revenue, transaction revenue, and other revenue.
According to Robinhood's report, net interest revenue grew 41% year over year to $236 million in the fourth quarter, while transaction revenue grew 8% to $200 million. Other revenue jumped 30% to $35 million, primarily due to higher revenue from Gold and Sherwood Media subscriptions.
Net revenue for the October-December period was $30 million, compared with a net loss of $166 million in the fourth quarter of 2022. Total operating expenses decreased 17% year-over-year to $445 million.
For the full year 2023, total net revenue increased 37% year-over-year to $1.87 billion, while net loss increased $487 million year-over-year to $541 million.
Total operating expenses increased 1% year over year to $2.40 billion. Adjusted EBITDA (non-GAAP) increased $630 million to $536 million from -$94 million in 2022.
"2023 was a successful year as our product velocity continued to grow, our trading market share increased, and we began our global expansion," said Vlad Tenev, CEO and Co-Founder of Robinhood, commenting on the report.
"We're off to an even better start in 2024, having already attracted more funded clients and net deposits in the first half of Q1 than we did in the entire fourth quarter of 2023," he added.
At the same time, CFO Jason Warnick noted that the company's clients prefer spot Bitcoin trading over ETFs.
According to Warnick's statement, only 5% of clients' cryptocurrency trading is done through Bitcoin ETFs, while the remaining 95% is done through spot BTC trading.
"We saw that it was mostly additive trading. There were some traders selling spot and buying ETFs, but that was more of an exception," he pointed out.
It's worth noting that Robinhood offers the full range of spot bitcoin ETFs in the US, which began trading on January 11, 2024.
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