Robinhood Markets (HOOD) has reported third-quarter financial results that beat Wall Street expectations as its revenue doubled from a year earlier.
The online brokerage and cryptocurrency exchange announced earnings per share (EPS) of $0.61 U.S., which topped the $0.53 U.S. expected among analysts.
Revenue in the July through September period totaled $1.27 billion U.S., which was ahead of the $1.19 billion U.S. forecast on Wall Street. Sales were up 100% from a year ago.
Transaction-based revenue, which is a proxy for trading activity on its platform, came in at $730 million U.S., which was a little below estimates that called for $739 million U.S.
In its earnings release, management highlighted that Robinhood continues to diversify its product offerings for its customer base that is mostly comprised of individual retail investors.
In this year’s third quarter, Robinhood added two new business lines, Prediction Markets and Bitstamp, that are already generating $100 million U.S. in annualized revenue for the company.
Robinhood is also pushing further into cryptocurrencies as it tries to close the gap with rival Coinbase Global (COIN).
In recent years, Robinhood has also started to offer traditional banking products such as credit cards and wealth management services.
HOOD stock has risen 261% this year to trade at $142.48 U.S. per share.
