Robinhood (HOOD) on Wednesday reported a 98% year-over-year jump in second-quarter crypto trading revenue, while easily beating Wall Street’s earnings estimates as the company’s crypto ambitions and international expansion began to take shape.
The popular trading platform posted net revenue of $160 million for crypto, up from $81 million in the same period last year. Adjusted earnings per share (EPS) came in at $0.42, topping the consensus estimate of $0.31 and doubling from a year ago. Overall revenue surged 45% to $989 million, which also beat analysts’ estimate of $928.8 million, according to FactSet data.
The company saw $28.3 billion in crypto trading volume in the second quarter.
“We delivered strong business results in Q2 driven by relentless product velocity, and we launched tokenization—which I believe is the biggest innovation our industry has seen in the past decade,” said Vlad Tenev, chairman and CEO of Robinhood.
Shares of Robinhood (HOOD) have rallied 177% so far this year, the biggest jump of any U.S. tech stock. The rally has pushed its market value to $91 billion, just shy of Coinbase’s (COIN) market cap. Coinbase is set to report earnings Thursday, with analysts expecting $1.59 billion in revenue and earnings of $1.25 per share.
Robinhood’s strong quarter reflects more than just market tailwinds. In June, the company bought crypto exchange Bitstamp for $200 million and followed up with a $179 million acquisition of WonderFi, a Canadian crypto platform. The purchases help Robinhood broaden its regulated footprint across North America.
The company is also planting stakes in Europe. It recently started offering tokenized versions of stocks and ETFs, which let investors buy fractions of traditional financial assets on the blockchain.
Shares of HOOD are mostly unchanged in post-market trading, while COIN shares were slightly positive.