Robinhood Surpasses $1 Billion in Revenue for the First Time, Sets Stage for Exciting 2025 with New Product Events
Robinhood, the popular fintech company, made a significant splash in its Q4 and Full Year 2024 Earnings Call, as CEO Vlad Tenev announced that the company had reached an unprecedented $1 billion in revenue for the first time in its history. This achievement capped off a record-breaking year with over $3 billion in revenue for the whole year, representing a staggering 58% growth from 2023 and almost double the revenue of two years ago.
Tenev attributed this success to the company's focus on three priorities: being #1 in active traders, #1 in wallet share for the next generation, and the #1 global financial ecosystem. The CEO expressed pride in the product velocity achieved by the team in 2024, highlighting the scaling of the Robinhood Gold Card, which he described as a "revolutionary credit card" with best-in-class rewards and user experience.
Another notable achievement was the launch of Robinhood Legend, the company's first desktop platform built from scratch for active traders. According to Tenev, the initial launch has been followed by a steady stream of new features and improvements every week, driven by customer feedback and the team's rapid response.
The company also made significant strides in its Derivatives business, launching Robinhood Derivatives last year at the Hood Summit event. This new asset class has proven to be highly popular among customers, with Tenev stating that the company is excited to do more there.
The impressive revenue figures were accompanied by other notable metrics, including a 30% increase in market share for equities and options, record net deposits of over $50 billion, and a record-breaking 2.6 million Gold subscribers, representing an 80% year-over-year growth rate. The attach rate for the Gold program has also increased to over 10%, with the company closing in on 3 million Gold subscribers.
One particularly striking trend was the adoption of Gold among new customers, with over 30% of those who joined Robinhood in Q4 opting for the premium service. This is a significant increase from the overall attach rate and bodes well for the company's future growth prospects.
Looking ahead to 2025, Tenev hinted at three upcoming product events: the Gold event in March, the first Crypto event in June (to be held in France), and Hood Summit later in the year. The agendas for these events are already packed with new products and features, including advisory services that the company has been working on.
