Robinhood expanded its offerings by acquiring crypto exchange Bitstamp in June and launching into the prediction market niche with a new platform in partnership with Kalshi.
Robinhood had a strong Q3, with a revenue of US$1.2 billion (AU$1.85 billion), nearly double a year earlier and ahead of forecasts. Earnings per share came in at US$0.61 (AU$0.94) with net income of US$556 million (AU$856.24 million).
Chairman and CEO Vlad Tenev attributed the results to faster product rollout, citing rapid growth in prediction markets, the early rollout of Robinhood Banking, and upcoming plans for Robinhood Ventures.
Robinhood Beats Expectations
The broker has been expanding beyond trading as crypto activity rebounded. Last quarter, Robinhood posted total sales of US$989 million (AU$1.52 billion), EPS of US$0.42 (AU$0.65), and profits of US$386 million (AU$594.44 million), all above expectations.
Jason Warnick, CFO of Robinhood, believes Q4 will continue with a bang and new record monthly trading volumes.
Crypto News Australia reported that Robinhood closed the Bitstamp acquisition in June of this year, adding a regulated trading venue and users across more than 50 countries. For comparison, the company posted US$61 million (AU$93.94 million) in crypto revenue in the year-ago quarter.
And yes, the exchange also dived into the prediction market niche by partnering with Kalshi and launching a new platform for political and major global events, with contracts working basically the same as any other prediction platform out there.
After hours, shares fell about 2% but remained up roughly 260% year to date. The company’s market capitalisation now stands at about US$126 billion (AU$194.04 billion).
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