Robinhood(US:HOOD) Guohai Securities·2024-11-03 02:17Investment Rating - The report maintains a "Buy" rating for Robinhood (HOOD) [2][3] Core Insights - The Q3 performance of Robinhood was below expectations, with revenue of $637 million, a year-over-year increase of 36% but a quarter-over-quarter decrease of 7%. The GAAP net profit was $150 million, marking a return to profitability. The company expects to maintain its annual expense guidance of $1.85 to $1.95 billion [3][7] - Despite the overall performance being below market expectations, several operational metrics showed strong growth, including assets under custody reaching a new high of $152.2 billion, a year-over-year increase of 76% and a quarter-over-quarter increase of 6%. The number of Gold members reached 2.19 million, with a subscription rate of 9% [3][9] - October data trends are promising, with net inflows exceeding $4 billion, stock trading volumes hitting a three-year high, and cryptocurrency trading volumes expected to exceed $5 billion, indicating a strong foundation for Q4 performance [3][12] Summary by Sections Financial Performance - In Q3 2024, Robinhood reported revenue of $637 million, a year-over-year increase of 36% and a quarter-over-quarter decrease of 7%. The GAAP net profit was $150 million, with an EPS of $0.17, which was below market expectations. The company also indicated a continued guidance for annual expenses between $1.85 billion and $1.95 billion [3][8][7] Operational Metrics - The assets under custody reached $152.2 billion, reflecting a year-over-year growth of 76% and a quarter-over-quarter growth of 6%. The average assets per funded customer increased to $6,300. The number of Gold subscribers was 2.19 million, with a subscription rate of 9% and a monthly active user count of 11 million, representing a year-over-year growth of 7% [3][9][11] Future Outlook - The report projects revenues for 2024, 2025, and 2026 to be $2.6 billion, $3.4 billion, and $4.0 billion respectively, with GAAP net profits of $691 million, $1.3 billion, and $1.7 billion. The corresponding P/E ratios are expected to be 30.6x, 16.1x, and 12.5x. The continuous development phase and product upgrades support a positive outlook for Robinhood's future performance [3][15][6]