Key TakeawaysRobinhood shares plunged Thursday after the online brokerage company missed Wall Street’s quarterly revenue expectations due to a customer promotion program.The stock broke out above the top trendline of an ascending triangle earlier this month, though the recent bullish price momentum came to a halt after the company's third-quarter results.Investors should watch important support levels on Robinhood's chart around $24, $22, and $20.50.The measuring principle, which calculates the depth of an ...

For the quarter ended September 2024, Robinhood Markets, Inc. (HOOD) reported revenue of $637 million, up 36.4% over the same period last year. EPS came in at $0.17, compared to -$0.09 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $661.21 million, representing a surprise of -3.66%. The company delivered an EPS surprise of -5.56%, with the consensus EPS estimate being $0.18. While investors closely watch year-over-year changes in headline numbers -- revenue and ear ...

Financial Data and Key Metrics - Q3 net deposits were $10 billion for the third consecutive quarter, bringing year-to-date net deposits to $34 billion, surpassing the 2020 record of $31 billion [8] - Customer assets under custody reached a record high of $152 billion, up 76% year-over-year [15] - Q3 revenues grew 36% year-over-year to $637 million, with adjusted EBITDA nearly doubling to $268 million and adjusted EBITDA margins expanding by 13 points to 42% [16] - Net income for Q3 was $150 million, or $0.17 per share, marking the fourth straight quarter of GAAP profitability [16] - Year-to-date revenues of nearly $2 billion have already surpassed last year's record of $1.9 billion, with GAAP diluted EPS of $0.55 [9] Business Line Performance - Transaction-based revenues grew 72% year-over-year, driven by higher volumes and market share gains across all trading products [17] - Options contracts increased 47% year-over-year, equity volumes rose 65%, and crypto volumes surged over 100% [17] - Net interest revenues increased 9% due to growth in interest-earning assets and improved securities lending activity [17] - Other revenues grew 42%, driven by a record 2.2 million Robinhood Gold subscribers, contributing over $110 million in annualized recurring revenue [18] Market Performance - Robinhood Gold subscriptions hit an all-time high of 2.2 million in Q3, with the Gold card showing strong customer retention rates of approximately 95% [10][12] - The company's crypto rebates increased to 48 basis points in October, up from 44 basis points in Q3 and 35 basis points at the start of the year [25] - The presidential election market saw over 10 million contracts traded on its first full day, with strong customer engagement [28] Strategic Direction and Industry Competition - Robinhood's strategy focuses on winning the active trader market, increasing wallet share, and expanding internationally [7] - The company launched Robinhood Legend, a state-of-the-art desktop platform, doubling its addressable market by targeting web-based traders [29][30] - New products like Index Options and Futures are expected to significantly expand the company's market share and revenue potential [27][28] - The company is scaling its Robinhood Gold card rollout cautiously to manage credit risk while meeting high customer demand [33] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to scale the Gold card significantly over time, citing strong customer feedback and behavior [13] - The company is focused on driving profitable growth, with expectations to finish near the top end of its full-year adjusted OpEx and SBC outlook range of $1.85 billion to $1.95 billion [21] - Management highlighted the strong momentum in October, with net deposits exceeding $4 billion and cash suite balances surpassing $25 billion [24] Other Important Information - The company initiated a $1 billion share repurchase program in July, repurchasing 5 million shares in Q3 and deploying over $700 million to repurchase approximately 60 million shares year-to-date [22][23] - Robinhood is winding down its 1% gold deposit boost promotion in November to focus on more effective customer acquisition strategies [19][20] Q&A Session Summary Questions and Answers - **Robinhood Gold Card Rollout**: The Gold card waitlist is close to 2 million, with 100,000 customers onboarded so far. The company plans to scale the card to multiples of its current level over the next year [32][33] - **Money Transfer Feature**: While the focus is on scaling the Gold card, the company is considering expanding offerings to include peer-to-peer money transfers in the future [34] - **Impact of Rate Cuts on Robinhood Gold**: The company is investing in new benefits for Gold subscribers, such as differentiated pricing on Index Options and Futures, to maintain value in a declining rate environment [36][37] - **Tax Gain and Loss Monitoring**: Robinhood has launched a realized P&L tool and is beta testing tax lot selection features, with plans to roll them out to customers soon [39] - **Robinhood Legend Desktop Platform**: Early feedback on the new desktop platform is extremely positive, with high engagement from active traders [43][44] - **Presidential Election Market**: The election market saw strong customer engagement, with over 10 million contracts traded on its first full day [46][48] - **Index Options and Futures Economics**: Index options are priced at $0.50 per contract for non-Gold users and $0.35 for Gold users, while Futures are priced at $0.75 and $0.50, respectively. These products are expected to contribute significantly to revenue growth [52][53] - **Interest Rate Sensitivity**: Each 25 basis point rate cut impacts the company by approximately $40 million, but falling rates are expected to drive higher trading activity and margin utilization [61][65] - **Product Rollout Strategy**: The company is cautious with product rollouts, particularly for the Gold card, to manage credit risk and ensure profitability [69][70] - **Crypto Rebates**: Crypto rebates increased to 48 basis points in October, reflecting the company's focus on balancing customer pricing and shareholder returns [72] - **Deposit Trends and Promotions**: Recent promotional offers, such as the Hood Week promotion, brought in $2 billion in deposits, with payback periods of around one year for 1% matches and two to three years for retirement matches [80][82] - **Election-Related Event Contracts**: The company views event contracts as a way to offer innovative products to active traders and provide reliable market predictions [85]

Robinhood Markets has made its name as a place for younger investors to day trade meme stocks, crypto and options on their phones. And on Wednesday’s (Oct. 30) third quarter 2024 earnings call, the retail trading platform’s executives emphasized to investors that their main aim is now to increase wallet share of existing investors while attracting a broader group to its platform.Per its materials, the company’s assets under custody increased 76% year over year (YoY) to $152.2 billion, driven by continued ne ...

Robinhood Markets, Inc. (HOOD) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.56%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $0.21, delivering a surprise of 40%. Over the last four quarters, the compa ...

Robinhood Reports Third Quarter 2024 Results Second highest Revenues on record, up 36% year-over-year to $637 million GAAP Diluted EPS of $0.17, up $0.26 year-over-year Year-to-date Net Deposits of $34 billion, Revenues of $1.94 billion, and GAAP Diluted EPS of $0.55 have all exceeded prior full year records MENLO PARK, Calif. – October 30, 2024 – Robinhood Markets, Inc. ("Robinhood") (NASDAQ: HOOD) today announced financial results for the third quarter of 2024, which ended September 30, 2024. "I'm really ...

Second highest Revenues on record, up 36% year-over-year to $637 millionGAAP Diluted EPS of $0.17, up $0.26 year-over-yearYear-to-date Net Deposits of $34 billion, Revenues of $1.94 billion, and GAAP Diluted EPS of $0.55 have all exceeded prior full year records MENLO PARK, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the third quarter of 2024, which ended September 30, 2024. “I'm really proud of our Q3 results and how s ...

You can bet on the election on Robinhood, but the details of how this is done are important for Robinhood's long-term growth.Robinhood (HOOD 3.03%) announced a new election product on Monday, which shows how quickly advanced products like swaps are making it to the trading platform. In this video, Travis Hoium covers what a swap contract is and how this could be a big part of Robinhood's future growth.*Stock prices used were end-of-day prices of Oct. 28, 2024. The video was published on Oct. 28, 2024. ...

Robinhood announced on Monday it is tapping into a growing politics prediction market by allowing users to trade Kamala Harris or Donald Trump contracts on the 2024 presidential election. Users were able to start trading as long as they met certain qualifications, like being a US citizen, the investing platform said in a press release. The event contract is being offered by Robinhood Derivatives and ForecastEx. The contracts will be priced between two cents and 99 cents, earning a $1 payout if the user gues ...

Key TakeawaysRobinhood Markets is allowing customers to trade on the outcome of the U.S. presidential election.The company's event contract allows investors who are U.S. citizens to choose either Vice President Kamala Harris or former President Donald Trump.Robinhood joined Interactive Brokers Group and Kalshi in offering presidential election event contracts. Robinhood Markets (HOOD) shares advanced Monday after the online trading platform announced that its customers could now make trades on the outcome o ...