Robinhood Markets, Inc. (HOOD) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 40%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.18, delivering a surprise of 260%. Over the last four quarters, the com ...

Financial Data and Key Metrics Changes - Total net revenues grew 40% year-over-year to a record $682 million, with adjusted EBITDA roughly doubling to $301 million [7][8] - Net income reached $188 million, or $0.21 per share, up seven times from a year ago [7][8] - Assets under custody finished at a record $140 billion, up 57% year-over-year, driven by record net deposits of over $13 billion [8][9] Business Line Data and Key Metrics Changes - Gold subscribers reached a record 2 million, representing over 60% year-over-year growth, with an adoption rate of 8.2% of customers [4][8] - Margin balances grew by over 20% in the last five weeks of the quarter to a two-year high of $5 billion, with 75% of that growth coming from customers with margin balances over $100,000 [5][8] - Transaction-based revenues were roughly flat, with increases in equities and options offset by declines in crypto revenues [9] Market Data and Key Metrics Changes - Retail trading market share continued to increase, leading to year-over-year growth in equity options and crypto volumes [3] - Cash sweep balances reached a record $21 billion, up 76% year-over-year [8] Company Strategy and Development Direction - The company is focused on three strategic pillars: winning the active trader market, increasing wallet share with customers, and expanding internationally [3] - Plans to host the inaugural Hood Summit in October to unveil new products for active traders [6] - The company aims to maximize earnings and free cash flow per share through capital allocation to organic growth and M&A [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum entering the second half of the year, with strong trading volumes and net deposits [13] - The company is optimistic about the potential for higher earnings and free cash flow driven by a 20% plus net deposit growth and a 90% fixed cost base [13] - Management acknowledged the challenges posed by regulatory environments but remains committed to innovation and growth in the crypto space [29][30] Other Important Information - The company announced two acquisitions: Bitstamp, a global crypto exchange, and Pluto, an AI-powered investment research platform [12] - A $1 billion share repurchase authorization was announced, expected to be executed over a two to three-year period [12] Q&A Session All Questions and Answers Question: When are you rolling out the credit cards? - The credit card rollout has started, with over 50,000 cardholders and positive customer feedback [16][17] Question: Can we get more information on the AI company that you just acquired? - The acquisition of Pluto, an AI-powered investment research platform, is expected to accelerate the company's work in AI and advisory [18] Question: Do you ever plan on releasing a desktop version of Robinhood with more in-depth chart analysis capabilities? - A desktop version is a top priority, with promising demos already seen [19] Question: Can you give color on the outage from earlier this week? - The outage was due to technology issues with a third-party ATS, which is being addressed to improve reliability [22][24] Question: What is the outlook for the crypto strategy? - Improved regulatory clarity could allow for more rapid innovation and expansion of crypto offerings [28][30] Question: How is the company addressing organic growth? - The company has seen strong organic growth exceeding 40% annualized and is optimistic about sustaining this momentum [36][37] Question: Can you provide an update on international expansion efforts? - Early signs of success in international markets, with plans to expand product offerings in the UK and EU [55][56] Question: What is the outlook for margin balances? - Margin balances have grown significantly due to competitive rates, with both existing and new customers taking advantage [51][52] Question: How are customers performing in the recent market sell-off? - Customers tend to buy during sell-offs, indicating a robust trading strategy among active users [69][71]

Financial Performance - Total net revenues increased 40% to $682 million compared to $486 million[153] - Net income was $188 million, or diluted EPS of $0.21, compared to $25 million, or $0.03 diluted EPS[153] - Adjusted EBITDA increased 99% to $301 million compared to $151 million[153] - Total net revenues for the three months ended June 30, 2024, reached $682 million, a 40% increase from $486 million in the same period of 2023[164] - The company reported a net income of $188 million for the three months ended June 30, 2024, compared to a net loss of $486 million in the same period of 2023[164] Customer Growth - Funded Customers increased 4% to 24.2 million compared to 23.2 million[154] - Gold Subscribers increased 61% to 1.98 million compared to 1.23 million[154] - The number of users placing cryptocurrency trades increased by 22% for the three months ended June 30, 2024, contributing to the rise in revenues[168] Assets and Deposits - Assets Under Custody (AUC) increased 57% to $139.7 billion compared to $88.8 billion[154] - Net Deposits were $13.2 billion, an annualized growth rate of 41% relative to AUC at the end of the first quarter of 2024[154] - Total interest-earning assets increased to $36,190 million as of June 30, 2024, up from $33,689 million as of March 31, 2024, representing a growth of 7.4%[173] Revenue Sources - Transaction-based revenues increased by $134 million (69%) for the three months ended June 30, 2024, driven by significant growth in cryptocurrencies and options[167] - Cryptocurrencies revenues surged by 161% for the three months ended June 30, 2024, totaling $81 million, compared to $31 million in the same period of 2023[168] - Net interest revenues for the three months ended June 30, 2024, were $285 million, a 22% increase from $234 million in the same period of 2023[171] - Gold subscription revenues rose by 44% to $26 million for the three months ended June 30, 2024, compared to $18 million in the same period of 2023[176] - Other revenues increased by 19% to $70 million for the three months ended June 30, 2024, up from $59 million in the same period of 2023[176] Operating Expenses - Operating expenses increased 6% to $493 million compared to $466 million[153] - Total operating expenses for the three months ended June 30, 2024, were $493 million, a 6% increase from $466 million in the same period of 2023[177] - Marketing expenses surged by 156% to $64 million for the three months ended June 30, 2024, compared to $25 million in the same period of 2023[177] - General and administrative expenses decreased by 16% to $134 million for the three months ended June 30, 2024, compared to $159 million in the same period of 2023[177] Cash and Liquidity - As of June 30, 2024, cash and cash equivalents were $4.52 billion, including a $750 million liquid investment portfolio[189] - The company had a total of $3.00 billion in committed revolving credit facilities and a borrowing amount up to $100 million for its Credit Card Funding Trust as of June 30, 2024[190] - The company believes its primary sources of liquidity will be adequate to meet current liquidity needs for the next 12 months[188] Risk Management - The company has established a comprehensive interest rate risk management policy to manage exposure to interest rate fluctuations[205] - The company has no outstanding borrowings under its credit facilities as of June 30, 2024, indicating limited financial exposure to interest rate changes[205] - The company's measurement of interest rate risk involves uncertain assumptions, which may lead to discrepancies between simulated and actual results due to various factors[206] - The company is indirectly exposed to equity securities risk related to margin receivables and securities lending activities[207] Commitments and Future Plans - The company is exploring potential strategic acquisitions to leverage existing capabilities and further build its business[187] - As of June 30, 2024, total cash commitments amount to $997 million, with $279 million due in the remainder of 2024 and $624 million due by 2025-2026[191] - Purchase commitments total $843 million, with $260 million due in the remainder of 2024[191]

Robinhood Markets, Inc. Earnings Presentation Second Quarter 2024 August 7, 2024 investors.robinhood.com 1 Disclaimers This Presentation Relates to Robinhood's Broader Earnings Announcement Disclosures This presentation accompanies the second quarter 2024 earnings announcement webcast of Robinhood Markets, Inc. (including its consolidated subsidiaries, "we," "Robinhood," or the "Company") and should be read together with Robinhood's earnings announcement press release. Hyperlinks to our second quarter 2024 ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Robinhood Reports Second Quarter 2024 Results Record Revenues of $682 million, up 40% year-over-year Record GAAP Diluted EPS of $0.21, up $0.18 year-over-year Record Net Deposits of $13.2 billion, an annualized growth rate of 41% MENLO PARK, Calif. – August 7, 2024 – Robinhood Markets, Inc. ("Robinhood") (NASDAQ: HOOD) today announced financial results for the second quarter of 2024, which ended June 30, 2024. "This quarter, we kept up the pace with rapid product launches and a relentless drive to provide t ...

Robinhood Markets, Inc. HOOD is set to release earnings results for its second quarter, before the opening bell on Aug. 7, 2024. Analysts expect the Menlo Park, California-based company to report quarterly earnings at 15 cents per share, up from 3 cents per share in the year-ago period. Robinhood is projected to report quarterly revenue of $643.34 million, according to data from Benzinga Pro. On Monday, Robinhood announced the suspension of its 24-hour trading service due to a problem at its thirdparty exec ...

Robinhood Markets, Inc. HOOD is reporting its Q2 earnings tomorrow morning. Analysts are looking for 15 cents per share. The shares appear to be breaking out ahead of this. This is why our team of trading experts has made it our Stock of the Day. When a stock is moving higher there isn't enough supply (sell orders) to fill all of the demand (buy orders). As a result, buyers are forced to pay premiums and this forces the shares into an uptrend. But if the stock reaches a resistance level the rally may revers ...

Group 1 - Robinhood Markets Inc (NASDAQ:HOOD) stock increased by 4.4% to $17.15 as Wall Street recovers from a selloff and Bitcoin rises [1] - The company is expected to report strong second-quarter earnings due to crypto trading and the resurgence of meme stocks [1] - Year-to-date, HOOD has a 33.2% gain and is rebounding from a pullback to its 200-day moving average, which provided support earlier in the year [2] Group 2 - The stock has experienced five declines in the past eight post-earnings sessions, including a 3.1% drop in May, but had a notable 13% increase after the February report [3] - Historically, shares have averaged a 7.3% price swing post-earnings, but current options pricing indicates a larger expected move of 18.8% [3] - Short-term options traders are showing bearish sentiment towards Robinhood, as indicated by a high put/call open interest ratio [3]

Wall Street analysts expect Robinhood Markets, Inc. (HOOD) to post quarterly earnings of $0.15 per share in its upcoming report, which indicates a year-over-year increase of 400%. Revenues are expected to be $629.75 million, up 29.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 12.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Prior t ...