Robinhood Markets, Inc. (HOOD) reported $618 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 40.1%. EPS of $0.18 for the same period compares to -$0.57 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $544.7 million, representing a surprise of +13.46%. The company delivered an EPS surprise of +260.00%, with the consensus EPS estimate being $0.05.While investors closely watch year-over-year changes in headline numbers -- revenue and ea ...

Financial Data and Key Metrics Changes - Total net revenues grew 40% year-over-year to $618 million, with adjusted EBITDA more than doubling to $247 million [39][58] - Incremental margins were reported at 75%, demonstrating scalability despite increased marketing and growth investments [39][58] - Net income reached $157 million, translating to a GAAP EPS of $0.18, marking a significant increase from previous quarters [39][58] Business Line Data and Key Metrics Changes - Strong participation from both existing and new customers, with 75% of net deposits coming from customers with over a year at the company [40] - Robinhood Gold subscribers grew to 1.7 million, up 42% year-over-year, with Gold ARPU significantly higher than average customers [41][57] - Transaction-based revenues increased across equities, options, and crypto, with net interest revenues benefiting from higher balances and securities lending activity [42][58] Market Data and Key Metrics Changes - Assets under custody reached a record $130 billion, up 65% year-over-year, driven by strong net deposits of over $11 billion [59] - April saw equity notional volumes of about $70 billion, options contracts at a record of roughly $125 million, and crypto notional volumes around $10 billion [42] - The company reported net asset inflows from other major brokerages totaling nearly $3 billion, more than double the previous quarter [36] Company Strategy and Development Direction - The company is focused on three main strategies: winning the active trader market, increasing wallet share, and expanding internationally [55] - Continued investment in marketing, with a planned increase of $100 million year-over-year, to support growth initiatives [39][58] - The introduction of new products, including the Gold credit card and index options, aims to enhance customer engagement and retention [87][118] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain a 20%-plus net deposit growth rate, supported by a young customer base and expansion into new markets [43] - The company is optimistic about the long-term potential of its offerings, particularly in light of generational wealth transfer trends [151] - Management acknowledged the challenges posed by regulatory developments but emphasized commitment to advocating for customer access to crypto assets [48][68] Other Important Information - The company reported a strong balance sheet with over $5 billion in cash, indicating potential for dividends, buybacks, or M&A activities [111] - The company is actively monitoring the performance of its new Gold card and plans to roll it out cautiously to manage risk [69][92] Q&A Session Summary Question: What impact will the SEC Wells notice have on the business? - Management stated that customer accounts remain unaffected and emphasized their commitment to operating in good faith within regulatory frameworks [48] Question: Are you still planning to roll out index options later this year? - Management confirmed the rollout of index options, highlighting their popularity and potential benefits for active traders [118] Question: Can you elaborate on the economics of new deposits coming into Gold-connected accounts? - Management expressed confidence in the economics of their promotions, noting positive payback periods for new customer cohorts [76] Question: What are your thoughts on capital allocation with $5 billion in cash? - Management indicated a balanced approach to capital allocation, considering organic growth investments, M&A opportunities, and shareholder returns [111] Question: How do new customers compare to existing ones? - Management noted that new customers are bringing in higher average balances and are engaging actively with the platform [150]

This presentation includes key performance metrics that our management uses to help evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. Our key performance metrics include Funded Customers, Assets Under Custody ("AUC"), Net Deposits, Average Revenue Per User ("ARPU"), and Gold Subscribers. Definitions of performance metrics can be found in the appendix to this presentation (the "Appendix"). For information on changes to our key performance m ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q ______________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☒ 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-40691 ______________________ Robinhood Markets, Inc. (Exact nam ...

Shares of Robinhood rose in extended trading Thursday afternoon after the retail brokerage announced stronger-than-expected first-quarter results.Robinhood reported 18 cents in earnings per share on $618 million of revenue. Analysts surveyed by LSEG were expecting the company to earn just 6 cents per share on $549 million in revenue.The company said the earnings and revenue numbers were both records for the firm. The stock jumped more than 4% in after hours trading.Robinhood surged in popularity during the ...

Robinhood Reports First Quarter 2024 Results Record Revenues of $618 million, up 40% year-over-year and Record GAAP Diluted EPS of $0.18 Record Net Deposits of $11.2B, including net positive transfers from every major incumbent brokerage firm • Total net revenues increased 40% year-over-year to $618 million. 1 ◦ Transaction-based revenues increased 59% year-over-year to $329 million, primarily driven by cryptocurrencies revenue of $126 million, up 232%, options revenue of $154 million, up 16%, and equities ...

Robinhood Markets, Inc. (HOOD) has received a notice from the Securities and Exchange Commission (SEC) that its crypto business — Robinhood Crypto — could face an enforcement action. The notice comes as a result of the violation of registrations as a securities broker and transfer agent.The regulator has argued that most tokens are subject to SEC rules. Thus, the platforms where they trade ought to be registered with the agency. The regulator relies on a test laid out in a 1946 Supreme Court case in order t ...

Robinhood’s cryptocurrency business could become the target of regulatory action.The trading platform said Monday (May 6) that it received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) staff indicating they will recommend that the commission take enforcement action against the company.“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wel ...

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, ...

Key TakeawaysOnline trading platform Robinhood said Monday that it has received a Wells Notice from the SEC recommending enforcement against the company's cryptocurrency platform.The SEC previously took similar actions against Coinbase and Kraken for failing to register as broker-dealers and sale of crypto tokens considered unregistered securities.Robinhood said it has cooperated with the agency's investigations and previously received subpoenas, and vowed that its crypto platform is "here to stay." Robinho ...