Robinhood’s crypto revenues reached approximately $268 million in the third quarter, driven by strong trading volumes and a blended take rate in the high 60-cent range, contributing to overall transaction-based revenue of $730 million.
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Robinhood reported $1.27 billion in third-quarter revenue, a 100% year-over-year increase that exceeded Wall Street expectations.
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Prediction markets saw volumes double quarterly to 2.3 billion contracts in Q3, with October alone surpassing that figure.
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The company added 2.5 million new accounts and $20 billion in net deposits, growing funded customers to 26.8 million and platform assets to $333 billion.
Discover Robinhood crypto revenues surging to $268 million in Q3 2024 amid booming prediction markets and European expansion. Explore key insights and growth strategies now.
What Are Robinhood’s Latest Crypto Revenues?
Robinhood crypto revenues hit approximately $268 million in the third quarter, fueling a 129% rise in transaction-based revenue to $730 million. This performance underscores the platform’s robust interest in digital assets, supported by efficient smart-exchange routing and a blended take rate in the high 60-cent zone. Overall, these figures contributed to total revenue of $1.27 billion, doubling from the previous year and surpassing analyst forecasts.
How Are Robinhood’s Prediction Markets Performing?
Robinhood’s prediction markets are experiencing explosive growth, with CEO Vlad Tenev describing them as “really on fire.” Volumes have doubled every quarter since launch, reaching 2.3 billion contracts in the third quarter, and October’s activity alone exceeded that total. The platform now offers over 1,000 live contracts covering diverse areas like sports, economics, politics, and culture, allowing users to price risk across various events.
Tenev emphasized the product’s appeal, noting that customers “really love” it and that Robinhood is expanding offerings to meet demand. He highlighted the company’s early entry into this asset class, which some experts believe could become one of the largest markets. In response to questions from analysts at Piper Sandler, Tenev pointed to Robinhood’s competitive edge through its scale, including over 26 million funded accounts in the U.S., which provides broad distribution and cross-asset reach.
Supporting data from the earnings presentation shows the platform’s overall strength, with 26.8 million funded customers at quarter-end and $333 billion in assets, both up more than 100% year-over-year. The addition of 2.5 million new accounts and $20 billion in net deposits in Q3 alone reflects sustained user engagement. According to financial analysts at KeyBanc Capital Markets, this momentum in prediction markets complements crypto trading, enhancing Robinhood’s diversified revenue streams.
Frequently Asked Questions
What Impacted Robinhood’s Crypto Revenues in Q3 2024?
Robinhood’s crypto revenues of $268 million in Q3 2024 were boosted by heightened trading activity, a stable blended take rate around 60 cents, and smart-exchange routing efficiencies. CFO Jason Warnick noted robust customer interest, with Q4 trends holding steady, as discussed in the earnings call.
Why Is Robinhood Expanding Prediction Markets Internationally?
Robinhood is rolling out prediction markets and stock-token trading to 30 European countries to tap into new growth opportunities over the next decade. CEO Vlad Tenev described this as a 10-year vision, starting from a limited base unlike in the U.S., with improving activity in the U.K. and EU prompting expanded marketing efforts.
Key Takeaways
- Revenue Surge: Robinhood’s $1.27 billion Q3 revenue doubled year-over-year, driven by crypto and options trading amid market volatility.
- Prediction Market Boom: Volumes hit 2.3 billion contracts in Q3, doubling quarterly, positioning this as a major new asset class.
- Global Ambitions: International expansion in Europe focuses on building customer bases, with Tenev forecasting underestimated long-term growth potential.
Conclusion
Robinhood’s third-quarter results highlight the continued strength of Robinhood crypto revenues at $268 million and the rapid rise of prediction markets, supported by a growing user base of 26.8 million funded accounts. As the company advances its Robinhood prediction markets and European expansion, these developments signal a promising trajectory for diversified trading platforms. Investors should monitor upcoming quarters for sustained momentum in digital assets and innovative products.
