Robinhood’s second quarter beats Wall Street expectations

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Prediction platform Robinhood reported US$989 million in second-quarter revenue, a 45% year-over-year increase, beating Wall Street’s estimate of US$908 million.

Net interest revenue also beat predictions, reaching US$357 million, compared to expectations of US$306 million. The company’s EBITDA also jumped by more than 80% year-over-year to US$549 million, above Wall Street estimates of US$448 million.

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The predictions platform also said that average revenue per user increased in the second quarter, rising 34% year-over-year to US$151, while Robinhood Gold subscribers topped 3.5 million in the second quarter, a 76% increase.

“We’re making a lot of progress in what I would call more passive, long-term areas. At the end of Q2, we had US$19 billion in retirement accounts, and we’re already over US$20 billion. A million and a half customers have retirement accounts, and we think there’s a lot of room for more customers to set up retirement accounts and start compounding benefits early,” Jason Warnick, Chief Financial Officer of Robinhood, told CNBC.

These revenue results come as regulations on prediction platforms have become more stringent. In February, Robinhood announced that it was opening a Pro Football Championship market, which it was later forced to suspend after the CFTC found that it did not comply with derivatives regulations.

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In a statement, Robinhood said it was “disappointed by this outcome” as it had been in contact with the regulator throughout its plans to launch the product. 

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