Robinhood Markets, Inc. Reports August 2024 Operating Data

Rhea-AI Summary

Robinhood Markets, Inc. (NASDAQ: HOOD) reported its August 2024 operating data, showing mixed results. Funded Customers grew to 24.3 million, up 60,000 from July and over 1 million year-over-year. Assets Under Custody (AUC) decreased 1% month-over-month to $143.6 billion but increased 60% year-over-year. Net Deposits were $3.3 billion, with a 27% annualized growth rate. Trading volumes showed mixed performance: Equity volumes decreased 8% from July, Options contracts traded fell 8%, while Crypto volumes increased 2%. Margin balances and Cash Sweep balances both grew, up 2% and 5% respectively from July. However, Securities Lending Revenue declined 14% to $18 million compared to July.

Positive

• Funded Customers increased by 60,000 to 24.3 million, showing continued user growth
• Assets Under Custody (AUC) grew 60% year-over-year to $143.6 billion
• Net Deposits were $3.3 billion, with a 27% annualized growth rate
• Crypto Notional Trading Volumes increased 2% month-over-month and 145% year-over-year
• Margin balances grew 2% month-over-month and 57% year-over-year to $5.5 billion
• Total Cash Sweep balances increased 5% month-over-month and 71% year-over-year to $22.8 billion

Negative

• Assets Under Custody (AUC) decreased 1% month-over-month
• Equity Notional Trading Volumes declined 8% from July 2024
• Options Contracts Traded decreased 8% month-over-month
• Total Securities Lending Revenue fell 14% month-over-month to $18 million

Insights

Financial Analyst

Robinhood's August 2024 operating data reveals a mixed performance. While the company shows strong year-over-year growth across most metrics, there are some concerning month-over-month trends. The 1% decrease in Assets Under Custody (AUC) and 8% decline in both Equity and Options trading volumes from July suggest potential headwinds.

However, the 27% annualized growth rate in Net Deposits and 5% increase in Total Cash Sweep balances indicate continued user engagement and trust. The 60% year-over-year AUC growth and 145% increase in Crypto trading volumes highlight Robinhood's expanding market presence. The company's ability to grow its customer base by over 1 million year-over-year is commendable, but the slowing monthly growth rate warrants attention.

Market Research Analyst

Robinhood's August data reflects broader market trends and changing investor behavior. The decline in equity and options trading volumes aligns with typical summer market slowdowns. However, the slight uptick in crypto trading suggests a shift in investor focus, possibly due to renewed interest in digital assets.

The substantial year-over-year growth in AUC and Net Deposits indicates Robinhood's expanding market share in the retail investing space. The 71% year-over-year increase in Cash Sweep balances is particularly noteworthy, suggesting users are keeping more funds readily available for trading opportunities. This could be a double-edged sword, potentially leading to increased trading activity but also reflecting cautious sentiment in uncertain market conditions.

MENLO PARK, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today reported select monthly operating data for August 2024:

• Funded Customers at the end of August were 24.3 million (up approximately 60 thousand from July 2024, up over one million year-over-year).
  
  
• Assets Under Custody (AUC) at the end of August were $143.6 billion (down 1% from July 2024, up 60% year-over-year). Net Deposits were $3.3 billion in August, translating to a 27% annualized growth rate relative to July 2024 AUC. Over the last twelve months, Net Deposits were $37.5 billion, translating to an annual growth rate of 42% relative to August 2023 AUC.
  
  
• Equity Notional Trading Volumes were $96.2 billion (down 8% from July 2024, up 61% year-over-year). Options Contracts Traded were 146.9 million (down 8% from July 2024, up 37% year-over-year). Crypto Notional Trading Volumes were $5.4 billion (up 2% from July 2024, up 145% year-over-year).
  
  
• Margin balances at the end of August were $5.5 billion (up 2% from the end of July 2024, up 57% year-over-year).
  
  
• Total Cash Sweep balances at the end of August were $22.8 billion (up 5% from the end of July 2024, up 71% year-over-year).
  
  
• Total Securities Lending Revenue in August was $18 million (down 14% from July 2024, up 6% year-over-year).
  
  

	August 2024		July 2024		M/M Change		August 2023		Y/Y Change
(M - in millions, B - in billions)
Funded Customer Growth (M)
Funded Customers	24.3		24.2		-		23.2		5%
Assets Under Custody (AUC) ($B)
Total AUC	$143.6		$144.5		(1%)		$89.7		60%
Net Deposits	$3.3		$4.2		NM		$1.6		NM
Trading
Trading Days (Equities and Options)	22		22		-		23		(4%)
Total Trading Volumes
Equity ($B)	$96.2		$104.4		(8%)		$59.8		61%
Options Contracts (M)	146.9		160.5		(8%)		107.3		37%
Crypto ($B)	$5.4		$5.3		2%		$2.2		145%
Daily Average Revenue Trades (DARTs) (M)
Equity	1.9		2.1		(10%)		1.5		27%
Options	0.9		0.9		-		0.6		50%
Crypto	0.3		0.3		-		0.2		50%
Customer Margin and Cash Sweep ($B)
Margin Book	$5.5		$5.4		2%		$3.5		57%
Total Cash Sweep	$22.8		$21.8		5%		$13.3		71%
Gold Cash Sweep	$22.2		$21.2		5%		$12.6		76%
Non-Gold Cash Sweep	$0.6		$0.6		-		$0.7		(14%)
Total Securities Lending Revenue ($M)	$18		$21		(14%)		$17		6%

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, and 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 in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission's (“SEC”) 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. All other names are trademarks and/or registered trademarks of their respective owners.

Contacts

Investor Relations

ir@robinhood.com

Media

press@robinhood.com

FAQ

What was Robinhood's (HOOD) customer growth in August 2024?

Robinhood (HOOD) reported an increase of approximately 60,000 funded customers in August 2024, bringing the total to 24.3 million. This represents a growth of over one million customers year-over-year.

How did Robinhood's (HOOD) Assets Under Custody (AUC) change in August 2024?

Robinhood's (HOOD) Assets Under Custody (AUC) at the end of August 2024 were $143.6 billion, down 1% from July 2024 but up 60% year-over-year.

What were Robinhood's (HOOD) Net Deposits in August 2024?

Robinhood (HOOD) reported Net Deposits of $3.3 billion in August 2024, translating to a 27% annualized growth rate relative to July 2024 AUC.

How did Robinhood's (HOOD) trading volumes perform in August 2024?

In August 2024, Robinhood (HOOD) saw Equity Notional Trading Volumes of $96.2 billion (down 8% from July), Options Contracts Traded at 146.9 million (down 8% from July), and Crypto Notional Trading Volumes at $5.4 billion (up 2% from July).