Robinhood Reports Strong Performance for 2023 with 37% MoM Growth in Total Net Revenue

US-based financial services company Robinhood Markets, Inc. ("Robinhood") unveiled its financial results for the fourth quarter (Q4) and full year 2023, showing a strong performance with a total revenue of $1.865 billion for the year, increasing 37% on a yearly basis.

Financial Overview for Q4:

• Total net revenues reached $471 million, 24% higher than $380 million in the year-ago quarter and 1% higher than $467 million in the prior quarter. Among them, net interest revenues increased by 41% from $167 million in Q4 2022 to $236 million, decreasing 6% compared to $251 million in Q3 2023. Transaction-based revenues rose by 8% from $186 million in Q4 2022 to $200 million, increasing 8% compared to $185 million in Q3 2023. Other revenues was $35 million, an increase of 30% on a year-on-year basis (YoY) and an increase of 13% on a month-on-month basis (MoM).

• Net income came in at $30 million, compared with a net loss of $166 million in the same period of last year and a net loss of $85 million in the previous quarter. EPS was $0.03 for the quarter, compared with -$0.19 in Q4 2022 and -$0.09 in Q3 2023.

• Total operating expenses amounted to $445 million, down 17% compared to $534 million in Q4 of last year and down 18% compared to $540 million in Q3 2023.

• Adjusted EBITDA (non-GAAP) reached $133 million, a significant increase of 62% compared to $82 million in Q4 2022 and a slight decrease of 3% compared to $137 million in Q3 2023.

• Funded Customers (previously Net Cumulative Funded Accounts) increased YoY by 420 thousand to 23.4 million.

• Assets Under Custody (AUC) increased 65% year-over-year to $102.6 billion.

• Net Deposits were $4.6 billion, which translates to an annualized growth rate of 21% relative to AUC at the end of Q3 2023. Over the past twelve months, Net Deposits were $17.1 billion, which translates to a growth rate of 27% relative to AUC at the end of Q4 2022.

• Average Revenue Per User (ARPU) increased YoY by 23% to $81.

• Cash and cash equivalents totaled $4.8 billion compared with $6.3 billion at the end of Q4 2022.

• Monthly Active Users (MAU) decreased 4% YoY to 10.9 million.

Financial Overview for Full Year 2023:

• Total net revenue came in at $1.865 billion, an increase of 37% compared to $1.358 billion in 2022. Among them, net interest revenues jumped 119% from $424 million in the prior year to $929 million; transaction-based revenues fall by 4% from $814 million to $785 million; and other revenues rose by 26% from $120 million to $151 million.

• Net loss was $541 million for the year, decreasing 47% compared to a net loss of $1,028 million in 2022. EPS was -$0.61 per share, compared to EPS of -$1.17 in the prior year.

• Total operating expenses amounted to $2,401 million, a light increase of 1% compared to $2,369 million in 2022.

• Adjusted EBITDA (non-GAAP) reported of $536 million, compared to -$94 million in 2022.