In a significant development for the trading and cryptocurrency markets, popular trading platform Robinhood (HOOD) has surpassed fourth-quarter earnings and revenue estimates, potentially signaling a favorable trend for its peer, Coinbase (COIN).
According to the latest reports, Robinhood’s fourth-quarter revenue soared 115% year-over-year to reach $1.01 billion, exceeding Wall Street analysts’ forecasts of $945.8 million, as noted in FactSet data. The company highlighted that its transaction-based revenue surged by 200% from the previous year, with a staggering 700% increase in cryptocurrency revenue playing a crucial role in this growth, as detailed in their official statement.
The impressive results from Robinhood could have positive implications for Coinbase, which is set to report its earnings shortly after the market closes this Thursday. Notably, both trading platforms cater to similar client demographics and generate a substantial portion of their revenue from trading fees. Analysts on Wall Street anticipate that Coinbase is poised to deliver one of its strongest quarters in terms of trading volume since Q4 of 2021, a surge attributed to the election of crypto-enthusiast President Donald Trump, which capitalized on the crypto market, sending prices to new all-time highs in November.
FactSet estimates suggest that Coinbase will report revenue of approximately $1.8 billion, a notable increase from the $1.26 billion reported in the previous quarter, along with an expected exchange volume of $195.9 billion, up from $185.3 billion.
In addition to the revenue figures, Robinhood reported earnings per share of $1.01, significantly outperforming the average estimate of $0.42. Following the release of this positive news, shares of the trading app surged by over 5% in post-market trading on Wednesday, while Coinbase’s stock also saw a modest increase of about 0.3%.
UPDATE (Feb. 12, 2025, 21:30 UTC): Additional information regarding COIN earnings has been incorporated.
CORRECT (Feb. 13, 14:02 UTC): The year has been corrected to 2021 in the third paragraph.
