Robinhood Crypto Exchange Revenue Report Increases 59%

Robinhood crypto exchange. (Photo; Doc. qz)

JAKARTA Robinhood has just released a quarterly earnings report. Robinhood released the report at a time when US regulators targeted the crypto exchange.

According to first-quarter results, Robinhood reported record revenues of 618 million US Dollars, up 40% compared to the previous year. Income from crypto also jumped 232% to 126 million US Dollars, the company managed to record revenues based on transactions of 329 million US Dollars, which increased 59% compared to the previous year, mainly driven by crypto.

Net income for the first quarter reached 157 million US Dollars, or 18 cents per share. This figure exceeds analyst average estimates of 6 cents and is much different from the loss of 511 million US Dollars, or 57 cents, experienced the previous year.

Robinhood also recorded success with gold-based products. The number of gold subscription customers increased to a record high of 1.7 million in the first quarter.

Vlad Tenev, CEO and co-founder of Robinhood, said, "We continue to strive to run our product roadmap in Q1, resulting in the highest record for Net Deposits and Gold Subscribers."

However, Robinhood is also the latest target in crypto prosecution by the US Securities and Exchange Commission. On May 4, the company received Wells notification from regulators warning that the company is likely to face law enforcement measures related to its crypto business.

Regulators make the same arguments as in most law enforcement measures, namely that most of the tokens traded on Robinhood are securities and comply with SEC registration rules and requirements.

Tenev described the SEC's actions as disappointing development, while chief financial officer Jason Warnick said, "So, it's disappointing to see more regulations through enforcement here."

"We run our crypto business very carefully. We are very selective in the coins we offer, and we do not offer services criticized by the SEC," continued Warnick.

Lauren Ashcraft, an analyst on financial services at Emmarketer, commented on the situation, "The Wells notification obscures the future of this revenue stream."

Robinhood (HOOD) shares rose 5.2% in post-hour trading to reach 18.60 US Dollars. The stock has seen a 50% increase so far this year, according to a report from MarketWatch.