Robinhood Q3 Highlights: Double Beat, Record Revenue, Prediction Markets Soar

Core Insights - Robinhood Markets reported a record third-quarter revenue of $1.27 billion, marking a 100% year-over-year increase and surpassing the consensus estimate of $1.19 billion [2][3] - The company achieved a quarterly earnings per share of 61 cents, exceeding the expected 48 cents [2] Financial Performance - Transaction-based revenue reached $730 million, up 129% year-over-year [2] - Net deposits for the quarter were $20 billion, setting a new record [3] - Average revenue per user increased by 82% year-over-year to $191 [3] Customer Growth - Robinhood Gold Subscribers grew to a record 3.9 million [3] - Funded Customers reached 26.8 million, a 10% increase year-over-year, with total Investment Accounts at 27.9 million, up 11% year-over-year [3] Business Diversification - The company now has 11 business lines generating $100 million or more in annualized revenues [3] - Prediction Markets and Bitstamp each contributed over $100 million in annualized revenues [5] Trading Activity - Event Contracts traded in Prediction Markets more than doubled to 2.3 billion in the quarter, with October totals reaching 2.5 billion [6] - Monthly trading volumes across various segments, including equities and options, set records in October [7] Future Outlook - The company anticipates full-year adjusted operating expenses and share-based compensation to be $2.28 billion [7] - The new CFO, Shiv Verma, will succeed Jason Warnick, who plans to retire next year [8] Revenue Breakdown - Cryptocurrencies revenue was $268 million, up over 300% year-over-year [9] - Options revenue reached $304 million, a 50% increase year-over-year [9] - Equities revenue totaled $86 million, up 132% year-over-year [9]