Press release
Robinhood Reports Second Quarter 2023 Results
GAAP Net Income was $25 million and GAAP Earnings Per Share was $0.03 MENLO PARK, Calif., Aug. 02, 2023 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc.
About this update from Robinhood Markets, Inc.
[{"type":"text","content":"GAAP Net Income was $25 million and GAAP Earnings Per Share was $0.03\nMENLO PARK, Calif., Aug. 02, 2023 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the second quarter of 2023, which ended June 30, 2023. Second Quarter Results: Total net revenues increased 10% sequentially to $486 million, primarily due to seasonally higher proxy revenue and higher net interest revenues, partially offset by lower transaction-based revenues.Transaction-based revenues decreased 7% sequentially to $193 million. Options decreased 5% to $127 million.Cryptocurrencies decreased 18% to $31 million.Equities decreased 7% to $25 million. Net interest revenue increased 13% sequentially to $234 million, driven by growth in interest earning assets, higher short term interest rates, and increased securities lending activity.Net income was $25 million, or earnings per share (EPS) of $0.03, compared with a net loss of $511 million, or EPS of -$0.57, in Q1 2023. 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\"). Operating expenses decreased by $484 million sequentially to $466 million, primarily due to the 2021 Founders Award Cancellation in Q1. Operating expenses prior to SBC increased $5 million sequentially to $357 million.SBC decreased by $489 million sequentially to $109 million, primarily due to the 2021 Founders Award Cancellation in Q1. Adjusted EBITDA (non-GAAP) increased 31% sequentially to $151 million. Adjusted EBITDA margin (non-GAAP) increased 5 points sequentially to 31%.Net Cumulative Funded Accounts increased 70 thousand sequentially to 23.2 million.Monthly Active Users (MAU) decreased 1.0 million sequentially to 10.8 million.Assets Under Custody (AUC) increased 13% sequentially to $89 billion, primarily driven by higher equity valuations and continued net deposits.Net Deposits were $4.1 billion, which translates to an annualized growth rate of 21% relative to AUC at the end of Q1 2023. Over the past twelve months, Net Deposits were $16.1 billion, which translates to a growth rate of 25% relative to AUC at the end of Q2 2022.Average Revenue Per User (ARPU) incr...