Robinhood (HOOD) on Wednesday reported a 339% year-over-year increase in third-quarter cryptocurrency trading revenue, building on momentum from earlier this year as the trading app leans more toward digital assets and global markets.
The company handled $80 billion in cryptocurrency trading volume during the quarter, recording $268 million in cryptocurrency-related revenue, up from $61 million in the same quarter last year. Adjusted earnings per share (EPS) were $0.61 versus Street estimates of $0.53; Total net income reached $1.27 billion versus forecasts of $1.21 billion.
Shares fell 2% in after-hours trading, but remain up about 260% so far this year.
“The third quarter was another strong quarter of profitable growth and we continued to diversify our business, adding two more business lines, Prediction Markets and Bitstamp, which are generating approximately $100 million or more in annualized revenue,” said Chief Financial Officer Jason Warnick. “And the fourth quarter got off to a strong start in October, with record monthly trading volumes in stocks, options, prediction markets and futures, and new highs for margin balances.”
The company now has a market capitalization of $126 billion, putting it above rivals like Coinbase (COIN), which reported strong earnings last week.
The strong results follow a series of moves to deepen Robinhood’s crypto footprint. Earlier this year, the company acquired Bitstamp, expanding its regulatory presence and user base to more than 50 countries.
