Robinhood Reports Total Net Revenue of $467M in Q3 2023, Up 29% YoY

US-based financial services company Robinhood Markets, Inc. ("Robinhood") announced financial results for the three months ended September 30, 2023 (Q3 2023), reporting an increase of 29% in total net revenue on a yearly basis.

Financial Results for Q3 2023:

• Total net revenue for the quarter rose by 29% from $361 million in Q3 2022 to $467 million, but dropping by 4% compared to $486 million in the prior quarter.

• Transaction-based revenues amounted to $188 million, a decrease of 11% compared to $208 million in a year-ago quarter and a decrease of 4% compared to $193 million in Q2 of this year. On a year-on-year basis, option revenue was unchanged at $124 million, equities revenue decreased by 13% to $27 million, while cryptocurrencies revenue decreased by 55% to $23 million.

• Net interest revenues jumped 96% from $128 million in the same period of last year to $251 million, up 7% compared to $234 million in Q2 2023.

• Operating expenses totaled $540 million in Q3 2023, 1% higher than $535 million in Q3 2022 and 16% higher than $466 million in Q2 2023.

• Adjusted EBITDA (non-GAAP) reported $137 million with margin of 29% for the three months, compared to $47 million and 13% in Q3 2022, as well as $151 million and 31% in Q2 2023.

• Net Cumulative Funded Accounts increased by 360,000 to 23.3 million on a year-on-year basis.

• Monthly Active Users (MAU) decreased by 16% to 10.3 million on a year-on-year basis.

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

• Net Deposits were $4.0 billion, which translates to an annualized growth rate of 18% relative to AUC at the end of Q2 2023. Over the past twelve months, Net Deposits were $17.3 billion, which translates to a growth rate of 27% relative to AUC at the end of Q3 2022.

• Cash and cash equivalents amounted to $4.9 billion, a decrease of 21.0% compared to $6.2 billion in the same period of 2022.

Jason Warnick, Chief Financial Officer of Robinhood Markets, commented: "With growing market share of retail trading and increased customer adoption across Robinhood Retirement, Instant Withdrawals, Securities Lending and Robinhood Gold, we're excited to see momentum building. As we continue to grow revenues and stay lean on expenses, we're focused on delivering strong operating leverage over time to drive shareholder value."