Robinhood(US:HOOD)2024-08-07 21:36Financial 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]