Robinhood Markets, Inc. Reports April 2024 Operating Data
Robinhood Markets reported its operating data for April 2024. The platform saw an increase in funded customers, reaching 24 million, reflecting a growth of 90,000 from March 2024. However, Assets Under Custody (AUC) fell by 5% to $123.3 billion. Net deposits were $4.9 billion for April, showing a 45% annualized growth rate compared to the previous month. Trading volumes for options increased by 7%, but volumes for equities and crypto declined by 17% and 57% respectively. Margin balances remained stable at $4.1 billion, while cash sweep balances rose by 1% to $19.1 billion. Securities lending revenue saw a significant increase of 24%, reaching $21 million. The data highlights a mixed performance in various areas of the business.
- Increase in funded customers to 24 million, up 90,000 from March 2024.
- Net deposits in April were $4.9 billion, translating to a 45% annualized growth rate compared to March 2024 AUC.
- Options contracts traded increased by 7% to 126.6 million.
- Total cash sweep balances rose by 1% to $19.1 billion.
- Securities lending revenue increased by 24%, reaching $21 million.
- Assets Under Custody (AUC) decreased by 5% to $123.3 billion.
- Equity notional trading volumes fell by 17% to $70.7 billion.
- Crypto notional trading volumes experienced a sharp decline, down 57% to $10.1 billion.
- Daily average revenue trades for equities decreased by 18%.
Insights
Robinhood Markets, Inc.'s April 2024 operating data offers several insights worth evaluating. The increase in funded customers to 24 million, a growth of 90,000 from March, signifies positive user acquisition momentum. However, this gain is juxtaposed with a 5% decline in Assets Under Custody (AUC) to $123.3 billion, suggesting that while more users are joining, the average asset value per customer is decreasing or market conditions impacted asset values.
Net deposits soared to $4.9 billion in April, reflecting a 45% annualized growth rate from March's AUC. Over a twelve-month span, net deposits grew at an impressive 35%, indicating strong user confidence in the platform.
Trading volumes presented mixed results. Equity trading volumes dropped by 17%, while crypto trading volumes plummeted by 57%. Conversely, options trading saw a 7% increase, indicating perhaps a strategic shift by users towards more complex financial instruments amid equity and crypto market volatility.
Finally, cash sweep balances saw a minor increase to $19.1 billion and securities lending revenue rose by 24% to $21 million, showing a potential lucrative stream for Robinhood. Overall, these figures paint a complex picture; user growth and depositor confidence are strong, but declining asset values and trading volumes in key areas could be a concern for future profitability.
The operational data for April 2024 presents Robinhood as a platform navigating through fluctuating market dynamics. The increase in funded customers by approximately 90,000 is a positive indicator of the platform's appeal and marketing effectiveness. However, the
A key highlight is the 45% annualized growth rate in net deposits from March's AUC, which is a strong testament to user trust and engagement. Analyzing trading volumes, the 17% drop in equity notional trading volume and a dramatic 57% fall in crypto trading volumes reveal a possible market sentiment shift or heightened market volatility affecting user trading behavior. In contrast, the 7% rise in options contracts traded indicates a robust appetite for derivatives, which might be driven by hedging strategies amid uncertain market conditions.
Margin balances remained stable at $4.1 billion, reflecting steady leveraged trading activity. The 1% increase in total cash sweep balances and the notable 24% increase in securities lending revenue suggest that Robinhood is effectively leveraging its user base for additional revenue streams. This operational data provides a mixed but generally positive outlook, emphasizing user growth and strong net deposits despite challenging trading conditions in certain segments.
MENLO PARK, Calif., May 15, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today reported select monthly operating data for April 2024:
- Funded Customers at the end of April were 24.0 million, up approximately 90 thousand from March 2024.
- Assets Under Custody (AUC) at the end of April were
$123.3 billion , down5% from March 2024. Net Deposits were$4.9 billion in April, translating to a45% annualized growth rate relative to March 2024 AUC. Over the last twelve months, Net Deposits were$27.4 billion , translating to an annual growth rate of35% relative to April 2023 AUC. - Trading Volumes in April were higher for options and lower for equities and crypto relative to March 2024. Equity Notional Trading Volumes were
$70.7 billion (down17% ). Options Contracts Traded were 126.6 million (up7% ). Crypto Notional Trading Volumes were$10.1 billion (down57% ). - Margin balances at the end of April were
$4.1 billion , unchanged from the end of March 2024. - Total Cash Sweep balances at the end of April were
$19.1 billion , up$0.1 billion or1% from the end of March 2024. - Total Securities Lending Revenue in April was
$21 million , up24% from March 2024.
| April 2024 | March 2024 | M/M Change | April 2023 | Y/Y Change | |
| (M - in millions, B - in billions) | |||||
| Funded Customer Growth (M) | |||||
| Funded Customers | 24.0 | 23.9 | - | 23.1 | 4% |
| Assets Under Custody (AUC) ($B) | |||||
| Total AUC | (5%) | 59% | |||
| Net Deposits | NM | NM | |||
| Trading | |||||
| Trading Days (Equities and Options) | 22 | 20 | 10% | 19 | 16% |
| Total Trading Volumes | |||||
| Equity ($B) | (17%) | 82% | |||
| Options Contracts (M) | 126.6 | 118.2 | 7% | 75.3 | 68% |
| Crypto ($B) | (57%) | 173% | |||
| Daily Average Revenue Trades (DARTs) (M) | |||||
| Equity | 1.8 | 2.2 | (18%) | 1.4 | 29% |
| Options | 0.8 | 0.8 | - | 0.5 | 60% |
| Crypto | 0.4 | 0.7 | (43%) | 0.2 | 100% |
| Customer Margin and Cash Sweep ($B) | |||||
| Margin Book | - | 32% | |||
| Total Cash Sweep | 1% | 99% | |||
| Gold Cash Sweep | 1% | 109% | |||
| Non-Gold Cash Sweep | (13%) | (13%) | |||
| Total Securities Lending Revenue ($M) | 24% | 17% | |||
For definitions and additional information regarding these metrics, please refer to Robinhood’s full monthly metrics release, which is available on investors.robinhood.com.
The information in this release is unaudited and the information for the months in the most recent fiscal quarter is preliminary, based on Robinhood’s estimates, and subject to completion of financial closing procedures. Final results for the most recent fiscal quarter, as reported in Robinhood’s quarterly and annual filings with the U.S. Securities and Exchange Commission (“SEC”), might vary from the information in this release.
About Robinhood
Robinhood Markets, Inc. is on a mission to democratize finance for all. In the U.S., people can invest with no account minimums through Robinhood Financial LLC, a registered broker dealer (member SIPC), buy and sell crypto through Robinhood Crypto, LLC, spend and earn rewards through debit cards with Robinhood Money, LLC and credit cards with Robinhood Credit, Inc. People can also trade U.S. stocks without commission or FX fees in the UK through Robinhood U.K. Ltd., trade crypto in select jurisdictions in the European Union through Robinhood Europe, UAB, and access easy-to-understand educational content through Robinhood Learn.
Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com) as means of disclosing information to the public for purposes of the SEC’s Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.
"Robinhood" and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc.
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