Press release
Robinhood Reports First Quarter 2023 Results
Robinhood Announces Launch of 24 Hour Market MENLO PARK, Calif., May 10, 2023 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today
About this update from Robinhood Markets, Inc.
[{"type":"text","content":"Robinhood Announces Launch of 24 Hour Market\nMENLO PARK, Calif., May 10, 2023 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the first quarter of 2023, which ended March 31, 2023. First Quarter Results: Total net revenues increased 16% sequentially to $441 million.Transaction-based revenues increased 11% sequentially to $207 million. Options increased 7% to $133 million.Cryptocurrencies decreased 1% to $38 million.Equities increased 29% to $27 million. Net interest revenue increased 25% sequentially to $208 million, driven by growth in interest earning assets, increased securities lending activity, and higher short-term interest rates.Net loss was $511 million, or earnings per share (EPS) of -$0.57, compared with net loss of $166 million, or EPS of -$0.19, in Q4 2022, a sequential decrease of $345 million or $0.38 per share. Q1 2023 EPS of -$0.57 included a -$0.54 EPS impact from a one-time $485 million share-based compensation (\"SBC\") expense related to our co-founders cancelling their 2021 market-based restricted stock unit awards in February 2023 (the \"2021 Founders Award Cancellation\").As a reminder, the 2021 Founders Award Cancellation will lower GAAP operating costs by up to $50 million per quarter starting in Q2 2023, and it reduced our fully diluted share count by 35.5 million in February 2023. Operating expenses increased by $416 million sequentially to $950 million, primarily due to the 2021 Founders Award Cancellation. Operating expenses prior to SBC decreased 6% sequentially to $352 million.SBC increased by $438 million sequentially to $598 million, due to the 2021 Founders Award Cancellation. Adjusted EBITDA (non-GAAP) increased 40% sequentially to $115 million.Net Cumulative Funded Accounts increased 120 thousand sequentially to 23.1 million.Monthly Active Users (MAU) increased 0.4 million sequentially to 11.8 million.Assets Under Custody (AUC) increased 26% sequentially to $78 billion, primarily driven by higher market valuations for growth stocks and crypto assets and continued net deposits.Net Deposits were $4.4 billion, which translates to an annualized growth rate of 29% relative to AUC at the end of Q4 2022. Over the past twelve months, Net Deposits were $17.1 billion, which translates to a growth rate of 18% relative to AUC at the end of Q1...