Robinhood Markets Inc Reports Record Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Robinhood Markets, Inc. Reports Record Q2 2024 Financial Results
Menlo Park, Calif. – August 7, 2024 – Robinhood Markets, Inc. (NASDAQ: HOOD) announced its financial results for the second quarter of 2024, which ended June 30, 2024. The company's performance was marked by record revenues and significant year-over-year growth.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Wall St Estimate (Q2 2024) |
|---|---|---|---|---|
| Total Revenue | $682M | $487M | +40% | $643.34M |
| GAAP Diluted EPS | $0.21 | $0.03 | +$0.18 | $0.15 |
Professional Interpretation: Robinhood exceeded Wall Street consensus estimates for both revenue and earnings per share (EPS) for Q2 2024. The company's total revenue grew by 40% year-over-year (YoY) to $682 million, surpassing the estimate of $643.34 million. GAAP diluted EPS also saw an impressive increase to $0.21, up $0.18 from the same quarter last year and beating the expected $0.15.
Revenue Performance Across Segments
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| Transaction-based Revenues | $327M | $193M | +69% |
| Options Revenue | $182M | $127M | +43% |
| Cryptocurrencies Revenue | $81M | $31M | +161% |
| Equities Revenue | $40M | $25M | +60% |
| Net Interest Revenues | $285M | $232M | +22% |
| Other Revenues | $70M | $59M | +19% |
Professional Interpretation: Robinhood's transaction-based revenues surged 69% YoY, driven by significant gains in options and cryptocurrencies revenues, which increased by 43% and 161%, respectively. Equities revenue saw a 60% increase, while net interest revenues rose by 22%. Other revenues, primarily from increased Gold subscription fees, grew by 19%.
Additional Key Operational Data
| Operational Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Deposits | $13.2B | $25M | +41% |
| Funded Customers | 24.2M | 23.2M | +1M |
| Investment Accounts | 24.8M | 23.4M | +1.4M |
| Assets Under Custody (AUC) | $139.7B | $89B | +57% |
| Average Revenue Per User (ARPU) | $113 | $84 | +35% |
| Gold Subscribers | 2.0M | 1.25M | +750K |
Management Comments
CEO Vlad Tenev commented, “This quarter, we kept up the pace with rapid product launches and a relentless drive to provide top value for our customers." CFO Jason Warnick added, "In Q2, we set new quarterly records for revenues and earnings per share as we continue to focus on delivering another year of profitable growth."
Dividends and Share Repurchase Program
Robinhood's Board of Directors authorized a $1 billion share repurchase program in May 2024. The company began executing this program in July 2024, with an expected completion within two to three years.
Forward Guidance
Robinhood reaffirmed its expense outlook for 2024, with expectations for GAAP total operating expenses and Non-GAAP combined Adjusted Operating Expenses and SBC to be between $1.85 billion and $1.95 billion.
Stock Price Movement
Following the earnings release, Robinhood's stock price increased by approximately 1.18%.
For more detailed information, the earnings press release and accompanying slide presentation are available at investors.robinhood.com. Robinhood will host a conference call today, August 7, 2024, at 2 p.m. PT / 5 p.m. ET.
The report is well-organized and contains all the necessary information for investors. No changes are required.
