Earnings Beat Propels Robinhood Stock to New Heights
The company released its fourth quarter (Q4) and full-year earnings on February 13, 2024. In Q4 FY2023, Robinhood delivered total net revenue growth of 24% year-over-year to $471 million. This increase was fueled by improved net interest, transaction-based, and other revenue growth. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a better picture of a companyโs profitability. Robinhood posted adjusted EBITDA of $133 million in Q4 FY2023 โ up 62% compared to the prior year.
For the full year, total net revenues climbed 37% year-over-year to $1.87 billion. Moreover, adjusted EBITDA surged $630 million compared to fiscal 2022 to positive $536 million compared to negative $94 million for fiscal 2022.
Robinhood stock has risen back into favour due to the rapid rise of retail trading in the U.S. The company is geared up for strong earnings growth going forward. Robinhood stock has climbed 38% so far in 2024 as of close on Wednesday, March 13. That represents its highest price levels since late 2021.
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