Robinhood Markets, Inc. Reports October 2023 Operating Data

Rhea-AI Summary

Robinhood (NASDAQ: HOOD) reports October 2023 operating data, including 23.3 million Net Cumulative Funded Accounts, $84.6 billion in Assets Under Custody, and $1.0 billion in Net Deposits. Trading volumes for equities, options, and crypto were higher compared to September 2023. Margin Balances were $3.5 billion, down 3% from September 2023, while Cash Sweep Balances were $13.9 billion, up $0.3 billion (2%) from the end of September 2023.

Positive

• Strong growth in Net Cumulative Funded Accounts and Net Deposits indicates increasing user adoption and engagement. Higher trading volumes across equities, options, and crypto demonstrate continued market activity and interest in diverse investment products. The increase in Cash Sweep Balances suggests growing customer cash holdings, potentially indicating positive sentiment and confidence in the platform.

Negative

• A 2% decrease in Assets Under Custody from September 2023 may raise concerns about the management of client assets, although it could be influenced by market fluctuations. The decline in Margin Balances by 3% from the previous month could indicate reduced leverage usage by customers, potentially impacting revenue from interest on margin loans.

MENLO PARK, Calif., Nov. 15, 2023 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today reported selected monthly operating data for October 2023:

• Net Cumulative Funded Accounts (NCFA) at the end of October were 23.3 million, up approximately 30 thousand from September 2023⁽¹⁾.
  
  
• Assets Under Custody (AUC) at the end of October were $84.6 billion, down 2% from September 2023. Net Deposits were $1.0 billion in October, translating to a 14% annualized growth rate relative to September 2023 AUC. Over the last twelve months, Net Deposits were $16.7 billion, translating to an annual growth rate of 24% relative to October 2022 AUC.
  
  
• Trading Volumes in October were higher for equities, options, and crypto compared to September 2023. Equity Notional Trading Volumes were $50.8 billion (up 15%). Options Contracts Traded were 96.6 million (up 11%). Crypto Notional Trading Volumes were $2.3 billion (up 92%).
  
  
• Margin Balances at the end of October were $3.5 billion, down 3% from September 2023.
  
  
• Cash Sweep Balances at the end of October were $13.9 billion, up $0.3 billion (2%) from the end of September 2023.
  
  

	October 2023	September 2023	M/M Change	October 2022	Y/Y Change
(M - in millions, B - in billions)
User Growth (M)
Net Cumulative Funded Accounts (NCFA)	23.3	23.3	-	22.9	2%
Assets Under Custody (AUC) ($B)
Total AUC	$84.6	$86.5	(2%)	$70.2	21%
Net Deposits	$1.0	$1.0	NM	$1.6	NM
Trading
Trading Days (equities and options)	22	20	10%	21	5%
Total Trading Volumes
Equity ($B)	$50.8	$44.2	15%	$46.7	9%
Options contracts (M)	96.6	87.3	11%	78.7	23%
Crypto ($B)	$2.3	$1.2	92%	$3.5	(34%)
Daily Average Revenue Trades (DARTs) (M)
Equity	1.4	1.5	(7%)	1.3	8%
Option	0.6	0.6	-	0.6	-
Crypto	0.2	0.1	100%	0.2	-
Customer Margin and Cash Sweep Balances ($B)
Margin Book	$3.5	$3.6	(3%)	$3.8	(8%)
Cash Sweep	$13.9	$13.6	2%	$3.8	266%
Gold Cash Sweep	$13.2	$12.9	2%	$2.5	428%
Non-Gold Cash Sweep	$0.7	$0.7	-	$1.4	(50%)

(1) Net Cumulative Funded Accounts (NCFAs) only includes unique customers and does not reflect existing customers opening multiple accounts.

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 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 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 Net Cumulative Funded Accounts did Robinhood report for October 2023?

Robinhood reported 23.3 million Net Cumulative Funded Accounts for October 2023.

What were the Assets Under Custody at the end of October 2023?

The Assets Under Custody at the end of October 2023 were $84.6 billion.

What were the Net Deposits in October 2023?

Robinhood reported $1.0 billion in Net Deposits for October 2023.

How did the trading volumes in October 2023 compare to September 2023?

Trading volumes for equities, options, and crypto were higher in October 2023 compared to September 2023.

What was the change in Margin Balances from September 2023 to October 2023?

Margin Balances at the end of October 2023 were $3.5 billion, down 3% from September 2023.

Where can I find additional information on Robinhood's monthly metrics?

For definitions and additional information regarding these metrics, please refer to Robinhood’s full monthly metrics release, available on investors.robinhood.com.