Robinhood Achieves Record-Breaking Net Revenue of $618M in Q1 2024

US-based financial services company Robinhood Markets, Inc. ("Robinhood") published its financial results for the three months ended March 31, 2024 ("Q1 2024" or "1Q24"), revealing a significant increase in record revenues.

Financial Overview for Q1 2024:

• During this period, the company generated total net revenues of a record $618 million, representing a 40% increase compared to $441 million in the same quarter of the previous year and a 31% increase compared to $471 million the previous quarter.

• Transaction-based revenues reached $329 million, 59% higher than the $207 million reported in Q1 2023 and 65% higher than the $200 million reported in Q4 2023. Net interest revenues were $254 million, a 22% increase compared to $208 million in Q1 2023 and an 8% increase compared to $236 million in Q4 2023. Other revenues rose by 35% from $26 million to $35 million year-on-year (YoY), remaining consistent with the prior quarter.

• Operating expenses for the quarter totaled $460 million, a 52% decrease compared to $950 million in the same period last year and a 3% increase compared to $445 million in the previous quarter. Adjusted operating expenses (non-GAAP) amounted to $398 million, a 13% YoY increase (Q1 2023: $352 million) and a 9% QoQ increase (Q4 2023: $364 million).

• Net income for the quarter reached $157 million, in stark contrast to the $511 million loss incurred in the year-ago quarter and the $30 million net income in the previous quarter.

• Adjusted EBITDA (non-GAAP) for the first quarter was $247 million, showing a 115% increase compared to $115 million in Q1 of the previous year and an 86% increase compared to $133 million in Q4 2023. The adjusted EBITDA margin was 40% in 1Q24, a significant improvement from 26% in 1Q23 and 28% in 4Q23.

• Both basic and diluted net income per share attributable to Robinhood's common stockholders amounted to $0.18, compared to a loss of $0.57 per share in the same quarter of 2023 and a profit of $0.03 per share in the previous quarter.

• In Q1, the number of funded customers increased by 810,000 YoY to reach 23.9 million, while the number of investment accounts rose by 1.1 million YoY to reach 24.4 million.

• As of March 31, 2024, the Assets Under Custody (AUC) reached a total of $129.6 billion, marking a 65% increase compared to the previous year.

• Net deposits reached a record amount of $11.2 billion, representing an annualized growth rate of 44% relative to the AUC at the end of Q4 2023.

• The company's cash and cash equivalents totaled $4.7 billion, decreasing 15% compared to $5.5 billion at the end of Q1 2023.

Vlad Tenev, CEO and Co-Founder of Robinhood, commented: "We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs for Net Deposits and Gold Subscribers. Q2 is off to a strong start with April being our highest month of the year for Net Deposits and Gold Subscriber growth, and we're excited to see strong interest from over 1 million customers in our Robinhood Gold Card."