Robinhood Posts 53% Yearly Jump in Total Net Revenue for Q2 2023

US-based financial services company Robinhood Markets, Inc. ("Robinhood") announced financial results for the second quarter of 2023 (Q2 2023), which ended June 30, 2023, witnessing a yearly increase of 53% in total net revenue for the quarter.

Financial Results for Q2 2023:

• Total net revenue during the period rose by 10% from $441 million in Q1 2023 to $486 million, increasing 53% compared to $318 million in Q2 2022.

• Transaction-based revenues was $193 million, 7% lower than $207 million in last quarter and 4% lower than $202 million in the same period of last year. Revenues of options decreased 5% to $127 million. Revenues of cryptocurrencies decreased 18% to $31 million. Revenues of equities decreased 7% to $25 million.

• Net interest revenues was $234 million, increasing 13% compared to $208 million in Q1 2023 and jumping 216% compared to $74 million in Q2 2022.

• Operating expenses amounted to $466 million, 51% lower than $950 million in the prior quarter and 24% lower than $610 million in the same quarter of 2022.

• Adjusted EBITDA (non-GAAP) increased 31% sequentially to $151 million. Adjusted EBITDA margin (non-GAAP) increased 5 points sequentially to 31%.

• Net Cumulative Funded Accounts increased 70 thousand sequentially to 23.2 million.

• Monthly Active Users (MAU) decreased 1.0 million sequentially to 10.8 million.

• Assets Under Custody (AUC) increased 13% sequentially to $89 billion, primarily driven by higher equity valuations and continued net deposits.

• Net Deposits were $4.1 billion, which translates to an annualized growth rate of 21% relative to AUC at the end of Q1 2023. Over the past twelve months, Net Deposits were $16.1 billion, which translates to a growth rate of 25% relative to AUC at the end of Q2 2022.Average Revenue Per User (ARPU) increased to $84 from $77 in Q1 2023.

• Cash and cash equivalents totaled $5.8 billion compared with $5.5 billion at the end of Q1 2023.