Core Viewpoint - Analysts have raised price targets for Robinhood shares following strong fourth-quarter results, highlighting impressive profitability metrics and accelerating growth [1][2]. Financial Performance - Robinhood reported Q4 revenue of $1.01 billion, exceeding estimates of $944.62 million, and earnings of $1.01 per share, surpassing estimates of 42 cents per share [1]. - Total revenue increased by 115% year-over-year, driven by strong transaction-based revenue growth across equities, options, and cryptocurrency [2]. - Net deposits reached a record of $16.1 billion in the quarter, with accounts growing by 10% [2]. Analyst Ratings and Price Targets - KeyBanc maintained an Overweight rating and raised the price target from $57 to $75, citing improving profitability and momentum with key product initiatives [2][3]. - JMP Securities maintained a Market Outperform rating and increased the price target from $60 to $77, describing the quarter as a "blowout" [4]. - Needham maintained a Buy rating and raised the price target from $52 to $70, noting strong growth and expense discipline [6]. - Goldman Sachs maintained a Buy rating and raised the price target from $54 to $62, calling it a "well-rounded quarter" [7][8]. - JPMorgan maintained a Neutral rating and raised the price target from $39 to $45, expressing caution regarding unproven business lines and valuation [9][10]. Growth Drivers and Market Position - Analysts believe Robinhood is well-positioned to continue its leadership in the financial application space, with expectations of growing average revenue per user due to strong engagement and new product uptake [3]. - The company is expected to benefit from positive regulation in the crypto space and aims to launch new crypto-related products appealing to retail customers by 2025 [7]. - Analysts noted that Robinhood's platform is maturing and evidencing profitability, with several growth drivers on the product roadmap not yet reflected in market estimates [6][9]. Stock Performance - Robinhood shares have increased by 67% year-to-date and over 360% in the past year, reflecting significant progress despite some analysts remaining cautious about new products and competition [10][11].

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Robinhood Markets (HOOD 10.30%) stock soared 12.5% through 11 a.m. ET Thursday after crushing its Q4 earnings report last night.Analysts thought the online brokerage app would earn $0.52 per share in its fourth quarter of fiscal 2024, but Robinhood nearly doubled that number at $1.01 per share. Sales were expected to land at $951.8 million, but the company reported more than $1 billion in sales, more than a 100% increase. Robinhood Q4 earningsRobinhood sales grew 115% year over year in Q4, with gains from i ...

Robinhood Markets (HOOD) stock soared out of the gate Thursday after the online investing platform crushed top- and bottom-line expectations for its fourth quarter.In the three months ending December 31, Robinhood's revenue more than doubled year over year to $1 billion, driven by transaction-based revenue that tripled to $672 million. This included a sevenfold surge in cryptocurrencies revenue to $358 million. Its earnings per share (EPS) improved to $1.01 from 3 cents in the year-ago period."Q4 was a reco ...

Financial Data and Key Metrics Changes - The company achieved over $1 billion in revenue for Q4 2024, marking the first time it surpassed this milestone as a public company, and total revenue for the year reached over $3 billion, up 58% from 2023 [5][10]. - Adjusted EBITDA for the full year increased over 160% to $1.4 billion, with an adjusted EBITDA margin growing to 48%, indicating strong operating leverage [18]. - Earnings per share for the first full year of positive net income was $1.56 [19]. Business Line Data and Key Metrics Changes - Robinhood Gold subscribers reached a record of 2.6 million, representing an 80% year-over-year growth, with a gold attach rate exceeding 10% across the overall customer base [12][20]. - The new derivatives business, including futures and event contracts, was launched, contributing to the overall revenue growth [9][10]. Market Data and Key Metrics Changes - Market share for equities and options increased by 30% year-over-year, with record net deposits exceeding $50 billion, reflecting nearly 50% growth [11][12]. - January 2025 saw net deposits as the second highest month ever, with trading volumes for equities, options, and crypto showing double to triple-digit growth rates compared to the previous year [28]. Company Strategy and Development Direction - The company aims to be the number one global financial ecosystem, focusing on active traders and increasing wallet share for the next generation [6][32]. - Plans for 2025 include expanding the Robinhood Gold card user base significantly and enhancing the product offerings, including advisory services and more crypto tokens [15][34][36]. - The integration of Bitstamp is expected to enhance access to the institutional market and expand the company's global reach [38]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit revenue growth driven by product innovation and market share gains [23]. - The company is focused on maintaining low single-digit growth in expenses while investing in new products and marketing [24]. - Management highlighted the importance of regulatory clarity for expanding crypto offerings and the potential for tokenization of real-world assets [77][78]. Other Important Information - The company is over a quarter of the way through its $1 billion share buyback program, anticipating a flat diluted share count in 2025 [27]. - The company is also exploring deeper analysis tools for individual stocks within the app, aiming to enhance the research capabilities for users [50][51]. Q&A Session Summary Question: When will the gold credit card be available to a broader audience? - The company plans to double the number of cardholders in the next few months, with a goal to significantly increase that number throughout the year [44][46]. Question: Will Robinhood offer deeper analysis on individual stocks within the app? - Yes, the company aims to provide the best information and tools for research within the app, including enhanced charting and fundamental analysis features [51][52]. Question: What are the long-term plans for sports contracts? - The company sees prediction markets as the future and plans to offer a comprehensive events platform for various contracts later this year [68][70]. Question: Can you clarify on the regulatory clarity needed for expanding crypto offerings? - The company requires comprehensive regulations for listing crypto asset securities to enable tokenization of private and public securities [77][78]. Question: How does the credit card's economics work between on and off balance sheet? - Credit risk is similar between both buckets, and the company is evaluating and optimizing the economics over time [151].

For the quarter ended December 2024, Robinhood Markets, Inc. (HOOD) reported revenue of $1.01 billion, up 115.3% over the same period last year. EPS came in at $0.54, compared to $0.03 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $940.65 million, representing a surprise of +7.80%. The company delivered an EPS surprise of +28.57%, with the consensus EPS estimate being $0.42.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Robinhood Markets, Inc. (HOOD) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.17, delivering a surprise of -5.56%.Over the last four quarters, the ...

Robinhood Markets, Inc. Earnings Presentation Fourth Quarter 2024 February 12, 2025 investors.robinhood.com •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ Q4 2024 | Earnings Presentation Disclaimers This Presentation Relates to Robinhood's Broader Earnings Announcement Disclosures This presentation accompanies the fourth quarter and full year 2024 earnings announcement webcast of Robinhood Markets, Inc. (including its consolidated subsidiaries, "we," "Robinhood," or the "Company") and should be read together with Robinhood's earning ...

Financial Data and Key Metrics Changes - The company achieved over $1 billion in revenue for the first time in Q4, totaling over $3 billion for the full year, representing a 58% increase from 2023 [5][14] - Adjusted EBITDA increased over 160% to $1.4 billion, with an adjusted EBITDA margin growing to 48% [14][15] - Earnings per share reached $1.56, marking the first full year of positive net income [15] Business Line Data and Key Metrics Changes - Robinhood Gold subscribers reached a record of 2.6 million, an 80% year-over-year growth, with a gold attach rate exceeding 10% across the overall customer base [10][15] - The new derivatives business, including futures and event contracts, was launched, contributing to strong business results [9][10] - Annualized gold subscription revenue increased to over $170 million [15] Market Data and Key Metrics Changes - Market share for equities and options rose by 30% year-over-year [10] - Record net deposits exceeded $50 billion, reflecting nearly 50% growth [10] - January 2025 saw net deposits as the second highest month ever, with trading volumes for equities, options, and crypto showing double to triple-digit growth rates [21] Company Strategy and Development Direction - The company aims to be the number one global financial ecosystem, focusing on active traders and wallet share for the next generation [6][24] - Plans for 2025 include expanding the Robinhood Gold Card user base significantly and enhancing product offerings [25][26] - The company is investing in a non-custodial crypto wallet and exploring tokenization of traditional assets onto crypto technology [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit revenue growth driven by product innovation and market share gains [17][19] - The company is monitoring the regulatory environment closely and is optimistic about future growth opportunities in both traditional and crypto markets [56][58] - Management highlighted the importance of balancing rapid growth with prudent risk management in credit offerings [34][40] Other Important Information - The company is over a quarter of the way through its $1 billion share buyback program, anticipating a flat diluted share count in 2025 [20] - The company is focused on maintaining a disciplined approach to expenses while investing in growth [19] Q&A Session Summary Question: When will the gold credit card be available to a broader audience? - The company plans to double the number of cardholders soon and aims to grow significantly throughout the year, balancing speed of rollout with prudent risk management [32][34] Question: Will Robinhood offer deeper analysis on individual stocks within the app? - Yes, the company aims to provide the best research and tools in-app, focusing on enhancing charting and technical analysis features [36][38] Question: Will Robinhood offer loans such as microloans or auto loans? - The company plans to address customer borrowing needs through margin products and credit cards, with a focus on expanding these offerings [39][41] Question: What hurdles might the company face in achieving its ambitious goals? - The company recognizes competition in the financial services space and emphasizes the need for continuous innovation and investment in technology [45][46] Question: Can you elaborate on the plans for sports contracts? - The company sees prediction markets as the future and aims to lead in this area, despite current regulatory uncertainties [49][51] Question: What is the outlook for the crypto offering and regulatory clarity? - The company is prepared to expand its crypto offerings as regulatory clarity improves, with a focus on tokenization of real-world assets [54][56] Question: How does the company view the impact of interest rates on trading volumes? - The company believes it can thrive regardless of interest rate changes, with a diversified business model that supports growth [82][85] Question: What are the growth drivers for 2025 regarding deposit incentives? - The company is experimenting with personalized deposit incentives and has seen significant growth in net deposits [88][91] Question: How are new gold members performing? - New gold members show increased asset growth and product adoption, with a strong attach rate among new customers [94][97] Question: What is the strategy for international expansion? - The company plans to expand internationally, starting with equities and building on existing products, aiming for a comprehensive suite of services [99][101]

Core Insights - Robinhood Markets reported exceptional fourth-quarter earnings for 2024, significantly exceeding analyst expectations in both EPS and revenue [2][6]. Financial Performance - The diluted EPS for Q4 2024 was $1.01, surpassing the estimate of $0.42 and showing a remarkable year-over-year increase of 3266.7% from $0.03 in Q4 2023 [3][6]. - Revenue reached $1.01 billion, exceeding the forecast of $934 million, and reflecting a substantial year-over-year growth of 115% from $471 million in Q4 2023 [3][6]. - Adjusted EBITDA was reported at $613 million, with a year-over-year increase of 361.7% from $133 million [3]. - Net income for the quarter was $916 million, a significant rise of 2953.3% compared to $30 million in Q4 2023 [3]. - Gold subscribers increased to 2.6 million, an 85.7% growth from 1.4 million in the previous year [3][7]. Business Model and Strategy - Robinhood is recognized for its commission-free trading model, appealing particularly to novice investors, while monetizing through premium services like Robinhood Gold [4]. - The company has focused on user growth and expanding financial services, including the introduction of cryptocurrency trading and enhancements in margin trading [5]. - The increase in transaction-based revenues was notably driven by the cryptocurrency segment, which surged to $358 million from $43 million [6]. User Engagement and Innovations - Average Revenue Per User (ARPU) rose to $164, indicating effective monetization strategies [7]. - The company launched new features aimed at active traders, including the Robinhood Legend platform and futures trading capabilities [8]. Future Outlook - Robinhood plans to continue growing user engagement and expanding into the Asia-Pacific market, with projected operating expenses and share-based compensation between $2.0 billion and $2.1 billion in 2025 [9]. - The strategic focus will remain on technology development, new product offerings, and geographical expansion [9].