Early Access

10-QPeriod: Q2 FY2023

Robinhood Markets, Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 3, 2023For Securities:HOOD

Summary

Robinhood Markets, Inc. reported a significant turnaround in its financial performance for the second quarter of 2023, achieving net income of $25 million, a stark contrast to the $295 million net loss in the same quarter of the previous year. This improvement was driven by a substantial increase in total net revenues to $486 million, up 53% year-over-year, largely fueled by a more than doubling of net interest revenues, benefiting from a higher interest rate environment. Despite a decline in monthly active users (MAU) to 10.8 million from 14.0 million in the prior year, the company saw its Assets Under Custody (AUC) grow by 38% to $88.8 billion. This growth in AUC, coupled with an increase in Average Revenue Per User (ARPU) to $84 from $56, indicates a more engaged and higher-value customer base. The company also made progress on expense management, with total operating expenses decreasing by 24% year-over-year, contributing to a positive Adjusted EBITDA of $151 million compared to a negative $80 million in the prior year. The acquisition of X1 Inc. for approximately $104 million, which closed on July 3, 2023, signals a strategic move to expand its offerings.

Financial Highlights

40 data points
Beta

Revenue

$486.00M

Net Income

$25.00M

0.1% Net Margin

EPS (Diluted)

$0.03

Total Assets

$28.66B

Cash & Equivalents

$5.83B

Free Cash Flow

$370.00M

Financial Statements
Beta
Revenue$486.00M
Operating Expenses$466.00M
Net Income$25.00M
EPS (Basic)$0.03
EPS (Diluted)$0.03
Shares Outstanding (Basic)904.98M
Shares Outstanding (Diluted)921.27M

Key Highlights

  • 1Robinhood achieved net income of $25 million in Q2 2023, a significant improvement from a net loss of $295 million in Q2 2022.
  • 2Total net revenues increased by 53% year-over-year to $486 million in Q2 2023, primarily driven by a 216% increase in net interest revenues.
  • 3Assets Under Custody (AUC) grew by 38% year-over-year to $88.8 billion as of June 30, 2023.
  • 4Average Revenue Per User (ARPU) increased by 50% year-over-year to $84 in Q2 2023.
  • 5Total operating expenses decreased by 24% year-over-year to $466 million in Q2 2023, reflecting successful cost management initiatives.
  • 6The company reported positive Adjusted EBITDA of $151 million in Q2 2023, compared to negative $80 million in Q2 2022.
  • 7Robinhood completed the acquisition of X1 Inc. for approximately $104 million, aiming to expand its credit card and rewards offerings.

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