From CNBC: 2024-05-08 16:36:30

Robinhood’s shares rose in after-hours trading after reporting strong first-quarter results, with net income of $157 million or 18 cents per share, a positive swing from last year’s $511 million loss. Earnings per share of 18 cents beat estimates of 6 cents, with revenue of $618 million surpassing expectations of $549 million.

The stock’s 5% jump after hours marked new record EPS and revenue numbers for Robinhood. The surge in popularity during the pandemic has led to user activity mirroring market trends, with crypto transactions generating $126 million in revenue during the quarter.

Despite regulatory uncertainty, Robinhood’s crypto business remains under scrutiny. The SEC’s Wells Notice could lead to legal enforcement action, leading the company to defend its position that crypto assets on its platform are not securities.

With 810,000 more funded customers year over year and assets under custody up 65% to $129.6 billion, Robinhood’s prospects are looking up. The stock had already climbed nearly 40% year to date before the earnings announcement.

Read more: Robinhood stock climbs after reporting record earnings