Robinhood Sees Decline in DARTs Across All Instruments in April 2023

The online trading app Robinhood unveiled a slowdown in demand in April 2023, with daily average revenue of trades (DARTs) across all instruments falling compared to that of April 2022 and March 2023.

Specifically, DARTs for equities in April decreased 11 percent from the prior month to 1.4 million. DARTs for options and cryptocurrencies stood at 0.5 million and 0.2 million, down 14 percent and 2 percent sequentially, respectively.

The monthly active users for April totaled 11.5 million, about 300,000 lower over the prior month, and declining 26 percent over the last same period. The number of net cumulative funded accounts rose by around 30,000 to 23.1 million.

Trading volume on the platform experienced a significant decline in the month. Equities trading dropped 32 percent on a monthly basis and 29 percent on a yearly basis to $38.9 billion. Trading with option instruments was down 25 percent from March but up 7 percent year-over-year to 75.3 million contracts.

Cryptocurrency trading declined slightly from the prior month's $3.9 billion to $3.7 billion. Compared to the last same period, the trading volume fell 47 percent.

The broker ended April with $77.4 billion in assets under custody, down slightly over March. The net deposits came in at $1.4 billion.

Last week, Fazzaco reported that Robinhood registered an increase of 16 percent in total net revenues on a quarterly basis to $441 million for the first quarter of 2023​. Adjusted EBITDA (non-GAAP) increased 40 percent sequentially to $115 million.