Robinhood (NASDAQ:) shares rose more than 4% after hours after the company’s report, with EPS of ($0.57) above the consensus estimate of ($0.62) . Revenue increased 16% sequentially to $441 million, beating the consensus estimate of $426.76 million.
Transaction-based revenue increased 11% sequentially to $207 million, with options up 7% to $133 million, cryptocurrencies up 1% to $38 million and shares up 29% to $27 million.
Net interest income increased 25% sequentially to $208m, driven by growth in interest-earning assets, higher securities lending activity and higher interest rates at short term.
Net cumulative funded accounts increased 120,000 sequentially to 23.1 million, and monthly active users (MAUs) increased 0.4 million sequentially to 11.8 million.
The company has confirmed that it will launch a 24-hour market, which will allow investors to place limit orders to buy whole shares of 43 of the most traded ETFs and individual stocks. It will be released to a subset of customers next week and will be available to everyone in June.
Following the results, Mizuho Securities shared its first take, noting that the first quarter continued to verify its bullish stance. According to the firm, Robinhood continues to surprise on EBITDA, with a further improvement in the Q/Q margin of 400 basis points, lowering SBC’s expectations for the year. The company reiterated its buy rating and price target of $14.