Robinhood (HOOD) Earnings News: Strong Crypto Results Help Drive Earnings Beat

Robinhood reported a remarkable 339% increase in its crypto trading revenue for Q3, amounting to $268 million, following a trading volume of $80 billion. This surge is attributed to the platform's strategic focus on digital assets and diversification into new business avenues, including Prediction Markets and Bitstamp, each generating significant annual revenues. Adjusted earnings per share were $0.61, surpassing analysts' expectations of $0.53. Despite these strong earnings, Robinhood's shares dipped 2% in after-hours trading but are still up approximately 260% year-to-date. CFO Jason Warnick highlighted the ongoing profitable growth and promising start to Q4, with record trading volumes in various segments. The company's market capitalization reached $126 billion, outpacing competitors like Coinbase who had also recently reported solid earnings. The positive results reflect Robinhood's commitment to deepening its presence in the crypto market, aided by the acquisition of Bitstamp earlier this year, which broadened its regulatory reach across over 50 countries.

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