Shares of US neobroker Robinhood Markets Inc (NASDAQ:HOOD) hit a new 52 week high in after-hours trading Wednesday, following the release of the company’s Q4 and full-year 2024 results report indicating record quarterly Revenues and Net Profit at the company.

Following a somewhat disappointing Q3 which saw Robinhood report Revenues of $637 million and Net Profit of $150 million, Robinhood Q4-2024 Revenues were up by a whopping 59% QoQ (and 115% YoY) to a record $1.01 billion. Q4 Net Income up over 10X year-over-year to a record $916 million, or Diluted EPS of a record $1.01.

Driving Robinhood’s growth were soaring Transaction-based revenues, led by Crypto trading. Crypto revenue hit $358 million in Q4 versus just $61 million in Q3.

Not surprisingly, Robinhood shares were soaring in after-hours trading, up about 11% (as at the time of writing) to just over $62 a share. Robinhood shares closed Wednesday at $55.91. The company’s 52 week high sat at $57.27 before the after-hours session.

Robinhood reported what seem like all-around healthy metrics for Q4. Net Deposits hit a record $16 billion. Robinhood Gold subscribers were up 86% year-over-year to a record 2.6 million. Q4 Adjusted EBITDA was up over 300% year-over-year to a record $613 million.

Vlad Tenev, CEO and Co-Founder of Robinhood said,

“We hit the gas on product development in 2024 with a new platform for active traders, Gold Card launch, an expanded UK and EU product suite, and much more.

“We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood.”

Jason Warnick, Chief Financial Officer of Robinhood added,

“Q4 was a record-breaking quarter that caps off a record-setting year in 2024. For both the quarter and full year, we reached new highs for Assets Under Custody, Net Deposits, Gold Subscribers, Revenues, Net Income, Adjusted EBITDA, and EPS. We’re entering 2025 with strong momentum as we remain focused on delivering another year of profitable growth.”

Fourth Quarter Results

• Total net revenues increased 115% year-over-year to $1.01 billion.
  • Transaction-based revenues increased over 200% year-over-year to $672 million, primarily driven by cryptocurrencies revenue of $358 million, up over 700%, options revenue of $222 million, up 83%, and equities revenue of $61 million, up 144%.
  • Net interest revenues increased 25% year-over-year to $296 million, primarily driven by growth in interest-earning assets, partially offset by a lower federal funds rate.
  • Other revenues increased 31% year-over-year to $46 million, primarily due to increased Gold subscription revenues.
• Net income increased over 10X year-over-year to $916 million, or diluted earnings per share (EPS) of $1.01, compared to $30 million, or diluted EPS of $0.03, in Q4 2023. Q4 2024 net income included:
  • a $369 million deferred tax benefit ($0.41 of diluted EPS), primarily from the release of the Company’s valuation allowance on most of its net deferred tax assets.
  • a $55 million benefit ($0.06 of diluted EPS) due to a reversal of an accrual as part of a regulatory settlement.
• Total operating expenses increased 3% year-over-year to $458 million, including a $55 million benefit due to a reversal of an accrual as part of a regulatory settlement.Adjusted Operating Expenses and Share-Based Compensation (SBC) (non-GAAP) increased 14% year-over-year to $508 million, which includes Adjusted Operating Expenses (non-GAAP) of $431 million and SBC of $77 million.
• Adjusted EBITDA (non-GAAP) increased over 300% year-over-year to $613 million.
• Funded Customers increased 8% year-over-year to 25.2 million.Investment Accounts increased by 10% year-over-year to 26.2 million.
• Assets Under Custody (AUC) increased 88% year-over-year to $193 billion, driven by continued Net Deposits and higher equity and cryptocurrency valuations.
• Net Deposits were $16.1 billion, an annualized growth rate of 42% relative to AUC at the end of Q3 2024. Over the past twelve months, Net Deposits were $50.5 billion, a growth rate of 49% relative to AUC at the end of Q4 2023.
• Average Revenue Per User (ARPU) increased by 102% year-over-year to $164.
• Gold Subscribers increased by 1.2 million, or 86%, year-over-year to 2.6 million.
• Cash and cash equivalents totaled $4.3 billion compared with $4.8 billion at the end of Q4 2023.
• Share repurchases were $160 million, representing 5.3 million shares of our Class A common stock at an average price per share of $29.79.

Robinhood’s results release for Q4 2024 is available here.