Crypto Rally to Boost Robinhood’s Trading Volume and Transaction Revenue in 2024

Based on Visible Alpha consensus, U.S. trading platform Robinhood Markets’ (NASDAQ: HOOD) crypto trading volumes are projected to surge by 179% in 2024 compared to the prior year, bringing in an estimated $379 million in revenue from crypto transactions. Meanwhile, revenue from equity transactions in 2024 is estimated at $139 million, up 34% year-over-year, and options transaction revenue is forecasted to reach $605 million, marking a 20% increase.

Robinhood experienced significant declines in crypto trading volumes in 2022 and 2023, impacted by the downturn in the cryptocurrency market. However, there has been a notable recovery in digital asset trading this year, largely due to increased investment in spot Bitcoin exchange-traded funds (ETFs) following its approval by the U.S. Securities and Exchange Commission (SEC) in January.

Overall, Robinhood’s total transaction-based revenue, which accounts for nearly 42% of the company’s total revenue, is estimated to grow by 50% year over year in 2024, reaching $1.2 billion. Net interest income, which has seen its share within total revenue rise significantly over the last few years, is expected to increase by 16%, reaching $1.1 billion. Robinhood marked its first profitable quarter in the first quarter of 2024, recording net income (GAAP) of $157 million. According to Visible Alpha consensus estimates, the company is projected to achieve full-year profitability in 2024, generating net income (GAAP) of $488 million, up from a net loss of -$541 million last year.