Robinhood Markets, Inc. Reports May 2024 Operating Data

Rhea-AI Summary

Robinhood Markets reported its May 2024 operating data, showing significant growth in various metrics. Funded customers reached 24.1 million, up 120 thousand from April 2024 and 960 thousand year-over-year. Assets Under Custody (AUC) stood at $135.0 billion, a 9% rise from April 2024 and 65% year-over-year. Net deposits were $3.6 billion in May, translating to a 35% annualized growth rate. Equity notional trading volumes hit $86.8 billion, up 23% from April 2024 and 76% year-over-year. Options contracts traded were 131.9 million, a 4% increase from April 2024 and 35% year-over-year. Crypto notional trading volumes dropped 30% month-over-month to $7.1 billion but were up 238% year-over-year. Margin balances rose to $4.5 billion, a 10% increase from April 2024 and a 45% increase year-over-year. Total cash sweep balances were $20.3 billion, a 6% increase month-over-month and 81% year-over-year. Securities lending revenue was $23 million, up 10% from April 2024 and 53% year-over-year.

Positive

• Funded customers increased by 120,000 from April 2024 and 960,000 year-over-year.
• Assets Under Custody (AUC) rose by 9% from April 2024 and 65% year-over-year, reaching $135 billion.
• Equity notional trading volumes grew by 23% month-over-month and 76% year-over-year, reaching $86.8 billion.
• Options contracts traded increased by 4% month-over-month and 35% year-over-year, totaling 131.9 million.
• Margin balances grew by 10% from April 2024 and 45% year-over-year, hitting $4.5 billion.
• Total cash sweep balances increased by 6% month-over-month and 81% year-over-year, totaling $20.3 billion.
• Securities lending revenue was up 10% from April 2024 and 53% year-over-year, reaching $23 million.

Negative

• Net deposits in May were $3.6 billion, down from $4.9 billion in April 2024.
• Crypto notional trading volumes decreased by 30% month-over-month to $7.1 billion.

Insights

Financial Analyst

Robinhood's latest operating data for May 2024 presents a positive outlook for the company. Key metrics show considerable growth across various parameters. The number of Funded Customers increased to 24.1 million, reflecting a steady addition. The Assets Under Custody (AUC) surged by 65% year-over-year to $135 billion, indicating strong investor trust and market participation. This growth in AUC is a significant indicator of increased investor confidence and higher transaction volumes.

Noteworthy is the 23% increase in Equity Notional Trading Volumes from April 2024 and a significant 76% rise year-over-year, suggesting an uptick in investor engagement and trading activity. However, the Crypto Trading Volumes saw a 30% month-on-month decline, although an impressive 238% increase year-over-year. This mixed data in the crypto segment reflects the inherent volatility in the digital assets market.

Meanwhile, the Margin Balances of $4.5 billion at the end of May, up 10% from April and 45% year-over-year, indicate increased leverage by investors, which could be a double-edged sword; while it can amplify gains, it also heightens risk in market downturns. Total Cash Sweep Balances rose by 6% month-over-month and 81% year-over-year to $20.3 billion, reflecting improved liquidity management.

In summary, the reported metrics suggest strong growth and market penetration for Robinhood. Investors should monitor the substantial growth in AUC and trading volumes while being cautious of the volatility in crypto trading activities and the implications of increased margin balances.

Market Research Analyst

Analyzing Robinhood's latest data, the marked increase in both Funded Customers and Assets Under Custody (AUC) is noteworthy. With 24.1 million funded accounts and AUC at $135 billion, the platform shows robustness in attracting new users and retaining assets. This could be attributed to the growing popularity of retail investing and Robinhood's user-friendly interface.

The growth in Equity Notional Trading Volumes by 76% year-over-year is particularly significant as it highlights the platform's increasing relevance in equity trading. Similarly, the Options Contracts Traded rose by 4% from April and 35% year-over-year, indicating heightened interest in options trading, which is typically preferred by more experienced traders seeking higher leverage.

However, the 30% drop in Crypto Trading Volumes from April reflects the volatile nature of the crypto market and suggests that traders might be shifting focus or reducing exposure due to market instability. On a positive note, the substantial year-over-year increase in crypto trading volumes suggests that despite short-term fluctuations, long-term interest in digital assets remains strong.

The consistent rise in Cash Sweep Balances to $20.3 billion, up 81% year-over-year, underlines Robinhood's effective strategies in managing customer cash, which could lead to increased interest revenue. Overall, the data points to a growing user base and higher trading activity, which bodes well for Robinhood's growth trajectory.

MENLO PARK, Calif., June 11, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today reported select monthly operating data for May 2024:

• Funded Customers at the end of May were 24.1 million (up approximately 120 thousand from April 2024, up 960 thousand year-over-year).
  
  
• Assets Under Custody (AUC) at the end of May were $135.0 billion (up 9% from April 2024, up 65% year-over-year). Net Deposits were $3.6 billion in May, translating to a 35% annualized growth rate relative to April 2024 AUC. Over the last twelve months, Net Deposits were $29.4 billion, translating to an annual growth rate of 36% relative to May 2023 AUC.
  
  
• Equity Notional Trading Volumes were $86.8 billion (up 23% from April 2024, up 76% year-over-year). Options Contracts Traded were 131.9 million (up 4% from April 2024, up 35% year-over-year). Crypto Notional Trading Volumes were $7.1 billion (down 30% from April 2024, up 238% year-over-year).
  
  
• Margin balances at the end of May were $4.5 billion (up 10% from the end of April 2024, up 45% year-over-year).
  
  
• Total Cash Sweep balances at the end of May were $20.3 billion (up 6% from the end of April 2024, up 81% year-over-year).
  
  
• Total Securities Lending Revenue in May was $23 million (up 10% from April 2024, up 53% year-over-year).
  
  
  

	May 2024	April 2024	M/M Change	May 2023	Y/Y Change
(M - in millions, B - in billions)
Funded Customer Growth (M)
Funded Customers	24.1	24.0	-	23.1	4%
Assets Under Custody (AUC) ($B)
Total AUC	$135.0	$123.3	9%	$81.8	65%
Net Deposits	$3.6	$4.9	NM	$1.6	NM
Trading
Trading Days (Equities and Options)	22	22	-	22	-
Total Trading Volumes
Equity ($B)	$86.8	$70.7	23%	$49.4	76%
Options Contracts (M)	131.9	126.6	4%	97.5	35%
Crypto ($B)	$7.1	$10.1	(30%)	$2.1	238%
Daily Average Revenue Trades (DARTs) (M)
Equity	2.0	1.8	11%	1.5	33%
Options	0.8	0.8	-	0.6	33%
Crypto	0.3	0.4	(25%)	0.2	50%
Customer Margin and Cash Sweep ($B)
Margin Book	$4.5	$4.1	10%	$3.1	45%
Total Cash Sweep	$20.3	$19.1	6%	$11.2	81%
Gold Cash Sweep	$19.6	$18.4	7%	$10.4	88%
Non-Gold Cash Sweep	$0.7	$0.7	-	$0.8	(13%)
Total Securities Lending Revenue ($M)	$23	$21	10%	$15	53%

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.

Contacts

Investor Relations

ir@robinhood.com

Media

press@robinhood.com

FAQ

How many funded customers did Robinhood report for May 2024?

Robinhood reported 24.1 million funded customers at the end of May 2024.

What were Robinhood's Assets Under Custody (AUC) in May 2024?

Robinhood's Assets Under Custody (AUC) were $135.0 billion in May 2024.

How much did Robinhood's equity notional trading volumes change in May 2024?

Robinhood's equity notional trading volumes increased by 23% from April 2024, reaching $86.8 billion.

What was the growth in Robinhood's options contracts traded in May 2024?

Options contracts traded by Robinhood grew by 4% from April 2024, totaling 131.9 million in May 2024.

How did Robinhood's crypto notional trading volumes perform in May 2024?

Robinhood's crypto notional trading volumes decreased by 30% from April 2024, amounting to $7.1 billion in May 2024.

What were Robinhood's total cash sweep balances in May 2024?

Robinhood's total cash sweep balances stood at $20.3 billion in May 2024.

What was Robinhood's securities lending revenue in May 2024?

Robinhood's securities lending revenue in May 2024 was $23 million.