robinhood’s โขprediction Markets โฃSurge to $300Mโข Run Rate, Fastest Growthโฃ in Company History
MENLO PARK, CA – November โ5, 2024 – Robinhood‘s foray into prediction markets is experiencing explosive growth, becoming the fastest-growing buisness line in the โขcompany’s history.โ Theโข platform’s prediction markets are already tracking โtoward โa $300 million annualized โคrevenue run rate based โon October volumes,less than one year โขafter surpassing $100 million in annualized revenue.
The rapid โascent of โprediction markets is a key component of Robinhood’s broader strategy to diversify its revenue streams โbeyond conventional brokerage services. The company now โboasts 11 businesses generating over $100 millionโข in annualized revenue, a testament to its โexpanding ecosystem.
“Prediction markets reached that milestoneโฃ in less than one year,” โRobinhood CEO โVladโ Tenev stated during Wednesday’sโฃ earnings call. โข”It’s ourโ fastest in history.”
Robinhood hasโค been actively expanding its offerings in 2024, adding three new business lines – fully โฃpaid securities lending, Gold subscriptions, and instantโฃ withdrawals – โคin additionโ to prediction marketsโ and a $200 million deal to acquire cryptocurrency exchange Bitstamp. Theโ company is alsoโค expanding the scope โof its prediction markets to include categories such as sports, economics, politics, and culture, Tenev noted.
The success of prediction markets underscores Robinhood’s โคfocus โคon attracting active traders, increasing wallet share โฃamong the next generation of โฃinvestors, and building aโฃ comprehensive global financial ecosystem.