By Robinhood Markets, the online brokerage firm, reported a net profit of $30 million in the fourth quarter of 2023, compared to a loss of $166 million in the same period the previous year. This positive result exceeded analysts’ expectations, who had predicted a loss of 1 cent per share.
Despite a 4% decline in monthly active users to 10.9 million, Robinhood saw a significant increase in average revenue per user, which rose by 23% to $81. The company’s revenue also experienced growth, with a 24% jump to $471 million, surpassing analysts’ estimated figure of $454.7 million.
Robinhood’s net interest revenue exhibited a notable surge of 41% to $236 million. This increase was driven by the growth in interest-earning assets and higher short-term interest rates. Transaction-based revenue saw an 8% rise to $200 million, predominantly due to the growth in its cryptocurrency operations.
Chief Executive Vlad Tenev expressed optimism about the company’s performance in 2024, stating that they have already achieved more funded customers and net deposits in the first half of the first quarter than in the entire fourth quarter of the previous year.
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