Robinhood Reports Third Quarter 2023 Results

About this update from Robinhood Markets, Inc.

[{"type":"text","content":"Company plans to launch UK Brokerage operations and EU Crypto trading in the coming weeks\nMENLO PARK, Calif., Nov. 07, 2023 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the third quarter of 2023, which ended September 30, 2023. Third Quarter Results: Total net revenues increased 29% year-over-year to $467 million, primarily due to higher net interest and other revenues, partially offset by lower transaction-based revenues.Net interest revenues increased 96% year-over-year to $251 million, driven by growth in interest earning assets and higher short term interest rates.Transaction-based revenues decreased 11% year-over-year to $185 million. Options was unchanged at $124 million.Equities decreased 13% to $27 million.Cryptocurrencies decreased 55% to $23 million. Net loss was $85 million, or earnings per share (EPS) of -$0.09, compared with a net loss of $175 million, or EPS of -$0.20, in Q3 2022. Q3 2023 EPS of -$0.09 included -$0.11 per share impact from a regulatory accrual of $104 million. Operating expenses decreased 1% year-over-year to $540 million. Adjusted Operating Expenses (non-GAAP, previously Operating expenses prior to SBC) increased 5% year-over-year to $353 million.Share-based compensation (SBC) decreased by 25% year-over-year to $83 million. Adjusted EBITDA (non-GAAP) increased 191% year-over-year to $137 million.Net Cumulative Funded Accounts increased by 360 thousand year-over-year to 23.3 million.Assets Under Custody (AUC) increased 34% year-over-year to $87 billion, primarily driven by continued Net Deposits and higher equity valuations.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.Average Revenue Per User (ARPU) increased by 27% year-over-year to $80.Cash and cash equivalents totaled $4.9 billion compared with $6.2 billion at the end of Q3 2022. The year-over-year decrease was primarily driven by share purchases, movement of some corporate cash into investments, and the acquisition of X1 Inc. (now \"Robinhood Credit\"). Monthly Active Users (MAU) decreased 16% year-over-year to 10.3 million. “It's been nearly 10 years since we fo...

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