Robinhood Markets, Inc. Reports October 2022 Operating Data

Rhea-AI Summary

Robinhood Markets (HOOD) reported its operating data for October 2022, showing a modest increase in Net Cumulative Funded Accounts to 22.9 million, up by 30,000 from September. Monthly Active Users rose to 12.5 million, reflecting a 2% increase. Assets Under Custody reached $70.2 billion, a 9% month-over-month growth. Net Deposits for October were reported at $1.6 billion, with a 30% annualized growth rate. However, Notional Trading Volumes remained flat, impacting transaction revenues.

Positive

• Net Cumulative Funded Accounts increased to 22.9 million.
• Monthly Active Users rose to 12.5 million, up 2%.
• Assets Under Custody reached $70.2 billion, up 9%.
• Net Deposits for October were $1.6 billion, a 30% annualized growth.

Negative

• Notional Trading Volumes were flat, which may limit transaction revenues.
• Equity trading volumes decreased by 41% year-over-year.
• Crypto trading volumes fell by 80% year-over-year.

MENLO PARK, Calif., Nov. 16, 2022 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today reported selected monthly operating data for October 2022:

• Net Cumulative Funded Accounts (NCFA) at the end of October were 22.9 Million, up approximately 30 thousand from September 2022. Monthly Active Users (MAU) at the end of October were 12.5 Million, up 0.3 Million from the end of September 2022.
  
  
• Assets Under Custody (AUC) at the end of October were $70.2 Billion, up 9% from the end of September 2022. Net Deposits were $1.6 Billion in October, translating to a 30% annualized growth rate relative to September 2022 AUC. Over the last twelve months, Net Deposits were $19.1 Billion, translating to an annual growth rate of 17% relative to October 2021 Assets Under Custody.
  
  
• Notional Trading Volumes - which are the primary driver of transaction revenues - were roughly flat in October from September 2022. Equities were $46.7 Billion (up 0.4%), Option contracts were 78.7 Million (up 1%), and Cryptocurrencies were $3.5 Billion (down 2%).
  
  
• Margin Balances at the end of October were $3.8 Billion, down $0.3 Billion from the end of September 2022. Cash Sweep Balances at the end of October were $3.8 Billion, up $0.8 Billion from the end of September 2022.
  
  
• Looking at early November: AUC (as of Friday, Nov. 11th) was similar to end of October levels; and Notional Trading Volumes per day (for the period of Nov. 1st through Nov. 11th) were up from October levels across equities, options, and crypto.
  

Robinhood	October 2022	September 2022	Change M/M	October 2021	Change Y/Y
(M - in millions, B - in billions)
User Growth (M)
Net Cumulative Funded Accounts (NCFA)	22.9	22.9	0%	22.5	2%
Engagement (M)
Monthly Active Users (MAU)	12.5	12.2	2%	19.5	-36%
Assets Under Custody (AUC) ($B)
Total AUC	$70.2	$64.6	9%	$111.2	-37%
Cumulative Net Deposits	$87.5	$85.9	2%	$68.4	28%
Net Deposits	$1.6	$1.3	N/M	$0.5	N/M
Trading
Trading Days (equities and options)	21	21	0%	21	0%
Total Trading Volumes
Equity ($B)	$46.7	$46.5	0%	$79.3	-41%
Options contracts (M)	78.7	78.2	1%	$91.9	-14%
Crypto ($B)	$3.5	$3.6	-2%	$18.0	-80%
Daily Average Revenue Trades (DARTs) (M)
Equity DARTs	1.3	1.5	-9%	2.2	-40%
Option DARTs	0.6	0.5	1%	0.7	-24%
Total DARTs (Equity and Options)	1.9	2.0	-6%	2.9	-36%
Crypto DARTs	0.2	0.3	-10%	0.5	-55%
Customer Margin and Cash Sweep Balances ($B)
Margin Book	$3.8	$4.1	-8	$6.0	-38
Cash Sweep	$3.8	$3.0	29%	$2.5	52%

For definitions and additional information regarding these metrics, please refer to Robinhood’s full monthly metrics update, 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 is on a mission to democratize finance for all. With Robinhood, people can invest with no account minimums through Robinhood Financial LLC, buy and sell crypto through Robinhood Crypto, LLC, spend, save, and earn rewards through Robinhood Money, LLC, and learn about investing through easy-to understand educational content.

Robinhood also intends to use the “Overview” tab of its Investor Relations website and its blog, Under the Hood, as means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg. FD). The Overview page can be accessed at investors.robinhood.com/overview and Under the Hood can be accessed at blog.robinhood.com and 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

What were Robinhood's user statistics for October 2022?

In October 2022, Robinhood reported 22.9 million Net Cumulative Funded Accounts and 12.5 million Monthly Active Users.

How much were Robinhood's assets under custody in October 2022?

Robinhood's Assets Under Custody in October 2022 were $70.2 billion, reflecting a 9% increase from September.

What were the net deposits reported by Robinhood for October 2022?

Robinhood reported net deposits of $1.6 billion for October 2022, translating to a 30% annualized growth.

How did Notional Trading Volumes perform in October 2022 for Robinhood?

Notional Trading Volumes for Robinhood were roughly flat in October 2022 compared to September.

What was the year-over-year change in equity trading volumes for Robinhood?

Robinhood's equity trading volumes decreased by 41% year-over-year in October 2022.

What was the year-over-year change in cryptocurrency trading volumes for Robinhood?

Cryptocurrency trading volumes for Robinhood fell by 80% year-over-year in October 2022.