In exciting news for retail brokerage Robinhood, the company announced stronger-than-expected first-quarter results, leading to a surge in its shares during extended trading on Wednesday afternoon. The company's net income rose to $157 million, or 18 cents per share, marking a positive swing from the same period last year when Robinhood reported a net loss of $511 million, or 57 cents per share.

Analysts had predicted earnings of 6 cents per share, thus Robinhood outperformed expectations with its earnings per share of 18 cents. The company also reported record revenue of $618 million for the first quarter, surpassing Wall Street estimates of $549 million. This impressive performance has now set new records for Robinhood in terms of both earnings per share and revenue numbers.

One significant factor contributing to the company's robust revenue is the cryptocurrency transactions, which accounted for $126 million during the quarter. However, regulatory uncertainty looms over this aspect of Robinhood's business, casting a shadow on its future prospects. In fact, on Monday, the company disclosed that it had received a Wells Notice from the Securities and Exchange Commission (SEC), indicating potential legal enforcement action related to its cryptocurrency business. Robinhood expressed disappointment with this decision and maintained its belief that the crypto assets on its platform are not legally considered securities.

Despite these challenges, Robinhood's user base continues to grow. The company reported a year-over-year increase of 810,000 funded customers, bringing the total to 23.9 million. Additionally, assets under custody rose by an impressive 65% to reach $129.6 billion.

The pandemic-driven surge in popularity experienced by Robinhood in 2020 and 2021 has translated into user activity and revenue that mirrors the broader market. The first quarter saw a rise in both stocks and cryptocurrencies, benefiting Robinhood's financial results.

Before the release of the first-quarter earnings, Robinhood's shares had already witnessed an impressive increase of nearly 40% year-to-date. Following the announcement, the stock jumped over 5% during after-hours trading.

While the uncertainty surrounding regulatory actions in the cryptocurrency realm is a cause for concern, Robinhood remains committed to providing its users with a seamless and accessible investment experience. The company is determined to navigate the challenges ahead and continue its growth trajectory.

[Note: The article is based solely on the information provided and does not include any additional or speculative details.]