Robinhood (HOOD) Provides Investor Updates
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Robinhood (NASDAQ: HOOD) disclosed:
Robinhood Provides Investor Updates
Ahead of its inaugural Investor Day, Robinhood Markets, Inc. (“Robinhood” or the “Company”) today provided early insight into certain November 2024 operating data and posted an Investor Day presentation on the Company’s investor relations website.
November 2024 Early Color
In November, Funded Customers grew by over 400 thousand.
Assets Under Custody grew to more than $190 billion (up over 15% from October 2024, up over 100% year-over-year), driven in part by customer Net Deposits of over $5 billion in November. Over the last twelve months through November, Net Deposits have totaled more than $47 billion.
In November, Equity Notional Trading Volumes were over $145 billion (up over 15% from October 2024, up over 170% year-over-year), Options Contracts Traded were over 150 million (down less than 5% from October 2024, up over 50% year-over-year), and Crypto Notional Trading Volumes were over $30 billion (up over 400% from October 2024, up over 600% year-over-year).
Additionally, November Margin balances were over $6.5 billion (up over 5% from October 2024, up over 80% year-over-year), and total Cash Sweep balances were over $26 billion (up over 2% from October 2024, up over 70% year-over-year).
The Company plans to release its full November 2024 Operating Data next week.
Investor Day Presentation
In addition, the Company provided an Investor Day presentation, which investors can find on its website investors.robinhood.com.
Definitions of Key Performance Metrics:
Assets Under Custody (“AUC”): We define AUC as the sum of the fair value of all equities, options, cryptocurrency and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in AUC in any given period.
Funded Customers: We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar days (a) had an account balance that was greater than zero (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) or (b) completed a transaction using any such account. Individuals who share a funded joint investing account (which launched in July 2024) are each considered to be a Funded Customer.
Net Deposits: We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash and assets earned in connection with Company promotions (such as account transfer and retirement match incentives and free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin interest, Gold subscription fees, and other assets transferred out of our platforms (assets transferred in or out include debit card transactions, Automated Customer Account Transfer Service transfers, and custodial crypto wallet transfers) for a stated period. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash and assets earned in connection with Company promotions and prior to January 2024, Net Deposits did not include inflows from dividends and interest or outflows from Robinhood Gold subscription fees and margin interest, although we have not restated amounts in prior periods as the impact to those figures was immaterial.
Definitions of Additional Operating Metrics:
Cash Sweep: We define Cash Sweep as the period-end aggregate balances in our brokerage sweep program (i.e., the period-end total amount of participating users’ uninvested brokerage cash that has been automatically “swept” or moved from their brokerage accounts into deposits for their benefit at a network of program banks). This is an off balance-sheet amount. Robinhood earns a net interest spread on Cash Sweep balances based on the interest rate offered by the banks less the interest rate given to users as stated in our program terms.
Margin Book: We define Margin Book as our period-end aggregate outstanding margin loan balances receivable (i.e., the period-end total amount we are owed by customers on loans made for the purchase of securities, supported by a pledge of assets in their margin-enabled brokerage accounts).
Notional Trading Volume: We define Notional Trading Volume for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class over a specified period of time.
Options Contracts Traded: We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.
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