Robinhood Reports Third Quarter 2022 Results

About this update from Robinhood Markets, Inc.

[{"type":"text","content":"MENLO PARK, Calif., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the third quarter of 2022, which ended September 30, 2022. Total net revenues increased 14% sequentially to $361 million.Transaction-based revenues increased 3% sequentially to $208 million. Options increased 10% sequentially to $124 million.Cryptocurrencies decreased 12% sequentially to $51 million.Equities increased 7% sequentially to $31 million. Net interest revenue increased 73% sequentially to $128 million.Net loss was $175 million, or $0.20 per share, compared with net loss of $295 million, or $0.34 per share in the second quarter of 2022, a sequential improvement of $120 million or $0.14 per share.Operating expenses decreased 12% sequentially to $535 million. Operating expenses prior to share-based compensation decreased 5% sequentially to $425 million, which included $90 million of restructuring charges related to the August 2022 Restructuring (defined below). Operating expenses prior to share-based compensation and restructuring charges were $335 million, a sequential improvement of $94 million. Share-based compensation expense decreased 33% sequentially to $110 million. The decrease was primarily driven by a $53 million net reversal related to the August 2022 Restructuring and our reduced pace of hiring this year. Adjusted EBITDA (non-GAAP) was positive $47 million, a sequential improvement of $127 million.Net Cumulative Funded Accounts increased by approximately 60 thousand sequentially to 22.9 million.Monthly Active Users (MAU) decreased 1.8 million sequentially to 12.2 million for September 2022, as customers continued to navigate the volatile market environment.Assets Under Custody (AUC) increased 1% sequentially to $64.6 billion, primarily driven by net deposits, partially offset by lower market asset valuations.Net Deposits were $2.7 billion, which translates to an annualized growth rate of 17% relative to June 2022 ending AUC. Over the past twelve months, Net Deposits were $18.0 billion, which translates to a growth rate of 19%.Average Revenues Per User (ARPU) increased to $63 from $56 in the second quarter of 2022.Cash and cash equivalents totaled $6.2 billion at September 30, 2022, compared with $6.0 billion at June 30, 2022. \"In the third quarter we achieved our go...

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