Robinhood (NASDAQ:) shares rose more than 4% in premarket trading Thursday after the company’s Q1 earnings and revenue topped analyst expectations.
The trading platform operator posted earnings per share (EPS) of $0.18 in Q1, surpassing consensus estimates of $0.05. Revenue came in at $618, exceeding the consensus projection of $543.14 million.
Average Revenue Per User (ARPU) grew 35% year-over-year to $104. Adjusted EBITDA (non-GAAP) rose 115% year-over-year to $247 million, Robinhood said.
For the full year of 2024, the company projects GAAP total operating expenses and non-GAAP adjusted operating expenses, including stock-based compensation, to fall between $1.85 billion and $1.95 billion
“We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs for Net Deposits and Gold Subscribers,” said Vlad Tenev, CEO and co-founder of Robinhood.
“Q2 is off to a strong start with April being our highest month of the year for Net Deposits and Gold Subscriber growth, and we’re excited to see strong interest from over 1 million customers in our Robinhood Gold Card.”
Reacting to Q1 results, analysts at Mizuho said they were “as good as gold.”
“We could not have asked for a better 1Q,” they said, raising the price target on HOOD from $21 to $23.
Meanwhile, analysts at Goldman Sachs said they expect a positive reaction from HOOD investors following the print’s release.
“In particular, while we had previously noted that HOOD’s 606 reports suggested substantial upside to the quarter for equities and options, which largely played out as expected, HOOD saw a nearly 3x QoQ increase in crypto revenues, which drove even more upside,” they wrote.
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“We also thought the company’s commentary around the recent SEC Wells Notice around its crypto platform was largely in-line with expectations, which we believe will be taken favorably,” Goldman added.
