Robinhood Revenue Doubles, Fueled by Surge in Crypto Trading 

(Bloomberg) — Robinhood Markets Inc. reported revenue that more than doubled as the online trading firm was buoyed by crypto-market transactions around the US presidential election.Most Read from Bloomberg Why American Mobility Ground to a Halt Saudi Arabia’s Neom Signs $5 Billion Deal for AI Data Center SpaceX Bid to Turn Texas Starbase Into City Is Set for Vote in May Cutting Arena Subsidies Can Help Cover Tax Cuts, Think Tank Says The Forgotten French Architect Who Rebuilt Marseille Revenue grew to $1.01 billion in the fourth quarter, beating Wall Street analyst estimates of $940.8 million for the three-month period. Cryptocurrency revenue also exceeded expectations, increasing more than 700% to $358 million.“We hit the gas on product development in 2024,” said Chief Executive Officer Vlad Tenev in a statement Wednesday. “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.”Shares of the firm surged more than 15% in extended New York trading.Crypto-FriendlyThe cryptocurrency-trading fervor was a key factor in Robinhood’s earnings growth. Leading up to the November election, President Donald Trump pledged to be a “pro-Bitcoin president,” and thus far has remained true to that statement, signing an executive order last month to establish a working group on digital assets. During the fourth quarter, Bitcoin traded above $100,000 after rallying for a month after Election Day.Robinhood has matured from its early meme-stock days — the Menlo Park, California-based firm now offers retirement products – but continues to push boundaries. Following the launch of its election-focused event contracts, Robinhood dipped a toe into sports-event contracts with the Super Bowl specifically in mind. A day later, the company pulled the offering after disclosing it had received a formal request for a suspension from the Commodity Futures Trading Commission.Unveiling a comprehensive event contracts platform is “top of mind” for the firm, Tenev said on a Wednesday call with analysts. Robinhood plans to not only be a leader in the space, but to push for industry-wide clarity, he said.The company’s results mark five sequential quarters of positive net income, with Robinhood reporting earnings of $916 million, or $1.01 a share, for the period. Robinhood’s outlook for combined adjusted operating expenses and share-based compensation for this year is $2 billion to $2.1 billion.Chief Financial Officer Jason Warnick said on the Wednesday call that revenue growth will again increase in double-digits this year.