Robinhood Reports 14% QoQ Increase in Total Net Revenues in Q3 2022

US-based financial services company Robinhood Markets, Inc. (Robinhood) announced financial results for the third quarter of 2022, which ended September 30, 2022.

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• Total net revenues increased 14% sequentially to $361 million.

• Transaction-based revenues increased 3% sequentially to $208 million. Options increased 10% sequentially to $124 million. Cryptocurrencies decreased 12% sequentially to $51 million. Equities increased 7% sequentially to $31 million.

• Net interest revenue increased 73% sequentially to $128 million.

• Net loss was $175 million, or $0.20 per share, compared with net loss of $295 million, or $0.34 per share in the second quarter of 2022, a sequential improvement of $120 million or $0.14 per share.

• Operating expenses decreased 12% sequentially to $535 million. Operating expenses prior to share-based compensation decreased 5% sequentially to $425 million, which included $90 million of restructuring charges related to the August 2022 Restructuring. Operating expenses prior to share-based compensation and restructuring charges were $335 million, a sequential improvement of $94 million. Share-based compensation expense decreased 33% sequentially to $110 million. 

• Adjusted EBITDA (non-GAAP) was positive $47 million, a sequential improvement of $127 million.

• Net Cumulative Funded Accounts increased by approximately 60 thousand sequentially to 22.9 million.

• Monthly Active Users (MAU) decreased 1.8 million sequentially to 12.2 million for September 2022, as customers continued to navigate the volatile market environment.

• Assets Under Custody (AUC) increased 1% sequentially to $64.6 billion, primarily driven by net deposits, partially offset by lower market asset valuations.

• Net Deposits were $2.7 billion, which translates to an annualized growth rate of 17% relative to June 2022 ending AUC. Over the past twelve months, Net Deposits were $18.0 billion, which translates to a growth rate of 19%.

• Average Revenues Per User (ARPU) increased to $63 from $56 in the second quarter of 2022.

• Cash and cash equivalents totaled $6.2 billion at September 30, 2022, compared with $6.0 billion at June 30, 2022.