Robinhood Posts 16% Quarterly Increase in Total Net Revenues for Q1 2023

US-based financial services company Robinhood Markets, Inc. ("Robinhood") announced financial results for the first quarter of 2023, which ended March 31, 2023, seeing an increase of 16% in total net revenues on a quarterly basis.

First Quarter Results:

• Total net revenues increased 16% sequentially to $441 million.

• Transaction-based revenues increased 11% sequentially to $207 million. Options increased 7% to $133 million. Cryptocurrencies decreased 1% to $38 million. Equities increased 29% to $27 million.

• Net interest revenue increased 25% sequentially to $208 million, driven by growth in interest earning assets, increased securities lending activity, and higher short-term interest rates.

• Net loss was $511 million, or earnings per share (EPS) of -$0.57, compared with net loss of $166 million, or EPS of -$0.19, in Q4 2022, a sequential decrease of $345 million or $0.38 per share.

• Operating expenses increased by $416 million sequentially to $950 million, primarily due to the 2021 Founders Award Cancellation.

• Adjusted EBITDA (non-GAAP) increased 40% sequentially to $115 million.

• Net Cumulative Funded Accounts increased 120 thousand sequentially to 23.1 million.

• Monthly Active Users (MAU) increased 0.4 million sequentially to 11.8 million.

• Assets Under Custody (AUC) increased 26% sequentially to $78 billion, primarily driven by higher market valuations for growth stocks and crypto assets and continued net deposits.

• Net Deposits were $4.4 billion, which translates to an annualized growth rate of 29% relative to AUC at the end of Q4 2022. Over the past twelve months, Net Deposits were $17.1 billion, which translates to a growth rate of 18% relative to AUC at the end of Q1 2022.

• Average Revenue Per User (ARPU) increased to $77 from $66 in Q4 2022.

• Cash and cash equivalents totaled $5.5 billion compared with $6.3 billion at the end of Q4 2022.