robinhood’s prediction Markets Surge to $300M Run Rate, Fastest Growth in Company History
MENLO PARK, CA – November 5, 2024 – Robinhood‘s foray into prediction markets is experiencing explosive growth, becoming the fastest-growing buisness line in the company’s history. The platform’s prediction markets are already tracking toward a $300 million annualized revenue run rate based on October volumes,less than one year after surpassing $100 million in annualized revenue.
The rapid ascent of prediction markets is a key component of Robinhood’s broader strategy to diversify its revenue streams beyond conventional brokerage services. The company now boasts 11 businesses generating over $100 million in annualized revenue, a testament to its expanding ecosystem.
“Prediction markets reached that milestone in less than one year,” Robinhood CEO Vlad Tenev stated during Wednesday’s earnings call. ”It’s our fastest in history.”
Robinhood has been actively expanding its offerings in 2024, adding three new business lines – fully paid securities lending, Gold subscriptions, and instant withdrawals – in addition to prediction markets and a $200 million deal to acquire cryptocurrency exchange Bitstamp. The company is also expanding the scope of its prediction markets to include categories such as sports, economics, politics, and culture, Tenev noted.
The success of prediction markets underscores Robinhood’s focus on attracting active traders, increasing wallet share among the next generation of investors, and building a comprehensive global financial ecosystem.