Robinhood Markets (Nasdaq: HOOD) generated a total net revenue of $471 million in the fourth quarter of 2023, an increase of 24 percent year-over-year. The figure beat the market estimate of $457 million, which resulted in a surge of the brokerage’s shares in after-hours trading.

Between October and December, Robinhood generated a net income of $30 million, translating to $0.03 earnings per share. It pivoted from a loss of $85 million in Q3 2023 and a loss of $166 million in the corresponding quarter of the previous year.

Revenue Received a Boost

As announced yesterday (Tuesday), Robinhood's revenue received a boost due to higher net interest, transaction-based, and other revenue sources. Its net interest income for the three months jumped by 4 percent to $236 million.

Further, the transaction-based revenue of the brokerage increased by 8 percent to $200 million. Robinhood highlighted that while options trading remains its revenue driver with $121 million, 2 percent lower, cryptocurrency revenue significantly increased 10 percent to $43 million. Equities revenue on the platform also increased by 19 percent to $25 million.

The platform generated $35 million in revenue, an increase of 30 percent, from other sources, including Gold subscriptions and Sherwood Media.

“2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally,” Vlad Tenev, CEO and Co-Founder of Robinhood, said.

Investors reacted quickly to the results of Robinhood as the publicly traded share price of the company jumped by more than 10 percent in the after-hours trading session.

Movement of HOOD shares after Q4 results were announced

Strong Customer Metrics

Robinhood's customer metrics significantly increased in the last quarter of 2023. The number of funded customers on the platform jumped by 420 thousand year-over-year to 23.4 million. However, the monthly active users declined 4 percent to 10.9 million.

Furthermore, the assets under custody increased by 65 percent to $102.6 billion. The net deposits on the platform also touched $4.6 billion, growing at an annualized rate of 21 percent. The average revenue per user increased by 23 percent to $81.

“We're off to an even better start in 2024, as we've already brought in more Funded Customers and Net Deposits through the first half of Q1 than we did in all of Q4 2023,” Tenev added.