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Investing.com -- Robinhood Markets Inc. (NASDAQ:HOOD) shares soared more than 15% in premarket trading Thursday as the company reported fourth-quarter earnings and revenue that significantly exceeded analyst expectations.
The financial services platform posted adjusted earnings per share of $1.01, surpassing the analyst consensus of $0.32. Revenue for the quarter reached $1.01 billion, handily beating the estimated $849.06 million.
Robinhood’s total net revenues surged 115% YoY to a record $1.01 billion, driven by a substantial increase in transaction-based revenues, which grew over 200% YoY to $672 million. Cryptocurrency revenue was a major contributor, soaring over 700% to $358 million.
Net income for the quarter increased more than tenfold YoY to $916 million, bolstered by a $369 million deferred tax benefit and a $55 million benefit from a regulatory settlement reversal.
"Q4 was a record-breaking quarter that caps off a record-setting year in 2024," said Jason Warnick, Chief Financial Officer of Robinhood. "We’re entering 2025 with strong momentum as we remain focused on delivering another year of profitable growth."
The company reported significant growth in key metrics, with Assets Under Custody increasing 88% YoY to $193 billion and Net Deposits reaching a record $16.1 billion for the quarter. Gold Subscribers grew 86% YoY to 2.6 million.
Commenting on the report, Mizuho (NYSE:MFG) analysts said the Q4 print "sets HOOD on path to grow 10x over 10 years."
"HOOD’s plans are ambitious as it aims to grow the business by 10x over the next 10 years by eying a $600bn+ TAM, or 200x 2024’s revenue. Continued execution increasingly suggests that plan is achievable," they noted.
The firm raised its HOOD estimates and the price target to $80 from $65.
Luke Juricic contributed to this report.