May 8 (Reuters) -

Online trading app Robinhood Markets ( HOOD ) beat estimates

for first-quarter profit thanks to strong trading volumes and

rate hikes that boosted its net interest revenue and sent shares

up about 6% after the bell on Wednesday.

The company reported a profit of $157 million or 18 cents

per share for the three months ended March 31, compared with

expectations of 6 cents per share, according to LSEG.

Monthly Active Users climbed 16% to 13.7 million in the

quarter.

The company, which has been trying to register with the

U.S. Securities and Exchange Commission for nearly two years,

received

an enforcement action notice from the regulator over crypto

tokens traded on its platform earlier this week.

Robinhood Crypto enables customers to deposit and

withdraw cryptocurrencies to and from its custodial platform and

also routes customer orders to liquidity providers based on the

lowest price.

Policy tightening by the Federal Reserve has allowed

companies to earn more from their cash deposits and their

portfolio of bond investments.

Brokers like Robinhood, which allows traders to borrow

against their investments, can charge higher interest on such

loans.

The company's net interest revenue jumped 22% to $254

million.

Robinhood was at the center of the 2021 retail trading

frenzy, driven by mom-and-pop investors who used the company's

commission-free platform to pump money into so-called "meme

stocks" during the pandemic-era lockdowns.

Hopes of a soft landing encouraged retail traders to

wade back into the market, allowing the Menlo Park,

California-based company to rake in 59% higher transaction-based

revenue.