Robinhood Markets, Inc. · NASDAQ:HOOD

Robinhood Markets — Investor Presentation (March 2025)

21 slides from Robinhood Markets's investor presentation, Mar 3, 2025

  1. Slide 1: Robinhood Markets, Inc. Investor Presentation

    Robinhood Markets, Inc. Investor Presentation March 3, 2025 ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣

  2. Slide 2: Disclaimers

    Robinhood Investor Presentation Disclaimers This Presentation Relates to Robinhood’s Broader Financial and Operating Metrics Disclosures This presentation (the “Presentation”) is intended to provide summary information about the business of Robinhood Markets, Inc. (including its consolidated subsidi

  3. Slide 3: Robinhood at a Glance

    Robinhood Investor Presentation Robinhood at a Glance Product Areas Brokerage Crypto Money The first commission-free trading The lowest cost place to trade Robinhood Gold Card, with 3% platform Crypto on average cash back across all categories ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ Key Business Metrics Funded Custo

  4. Slide 4: Robinhood Investment Thesis

    Robinhood Investor Presentation Robinhood Investment Thesis 1 Massive market opportunity 2 Product velocity → rapid market share gains ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ 3 Business growing and diversifying 4 Powerful business model → profitable growth investors.robinhood.com 4

  5. Slide 5: Robinhood 10 Year Vision from 2024 Investor Day

    Robinhood Investor Presentation 1 Robinhood 10 Year Vision from 2024 Investor Day #1 in Active Traders ➔ #1 in Wallet Share for Next Generation ➔ #1 Global Financial Ecosystem ➔ ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ Peak Peak Peak Today 1-2 Years ~5 Years ~10 Years investors.robinhood.com 5

  6. Slide 6: We have a massive revenue TAM of $600B+ that is ~200x our total net revenues

    Robinhood Investor Presentation 1 We have a massive revenue TAM of $600B+ that is ~200x our total net revenues Robinhood Revenue Total Addressable Market (in billions)1 As prepared for Robinhood Investor Day 2024 Global Financial Ecosystem = $400B+ Share of Wallet for Next ••‧‧•‧•‧•‧•‧‧••••‧‧‧ Gener

  7. Slide 7: US generational wealth transfer is a tailwind for our business

    Robinhood Investor Presentation 1 US generational wealth transfer is a tailwind for our business Share of US household wealth by generation1 Distribution of AUC at Robinhood by age2 In billions Millennials Silent Generation & Older Median Robinhood Customer Age2: 35 Baby Boomers ••‧‧•‧•‧•‧•‧‧••••‧‧‧

  8. Slide 8: Retail participation in the markets is increasing

    Robinhood Investor Presentation 1 Retail participation in the markets is increasing Share of US households with stock holdings1 ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ (1) Data from US Federal Reserve. investors.robinhood.com 8

  9. Slide 9: Our product velocity is industry-leading, and our innovations are democratizing finance

    Robinhood Investor Presentation 2 Our product velocity is industry-leading, and our innovations are democratizing finance Mobile First, Options With News & Recurring Say Retirement 24 Hour Robinhood Robinhood Commission No Contract Education Investments Technologies Accounts Market Gold Card Legend F

  10. Slide 10: Our strong brand and innovative products translate to robust organic asset growth and customer retention

    Robinhood Investor Presentation 2 Our strong brand and innovative products translate to robust organic asset growth and customer retention Net Deposits Assets Under Custody In billions In billions Growth Rate (Relative to prior period AUC, %) ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ Average Revenue per User Customer

  11. Slide 11: Our asset growth drives revenue growth over time

    Robinhood Investor Presentation 2 Our asset growth drives revenue growth over time Assets Under Custody Total Net Revenues Assets Under Custody have grown over time, driven by: Funded Customers AUC per Funded Customer1 ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ This leads to higher Total Net Revenues, driven by: Trade

  12. Slide 12: We believe we can continue growing and diversifying our revenues

    Robinhood Investor Presentation 3 We believe we can continue growing and diversifying our revenues Total Net Revenues Our revenues are diversifying, with 9 businesses In millions generating $100M or more in annualized revenue4 as of Q4 2024: Transaction-Based Revenues1 Net Interest Revenues2 Other R

  13. Slide 13: A key competitive advantage…we are a technology company

    Robinhood Investor Presentation 4 A key competitive advantage…we are a technology company 2024 Total Operating Expenses Incremental Adjusted EBITDA Margin1 Revenue per Employee2 (in thousands) Variable Costs Fixed Costs 82% Variable costs include transaction and customer volume driven expenses, cred

  14. Slide 14: Our capital allocation optimizes for EPS over time

    Robinhood Investor Presentation 4 Our capital allocation optimizes for EPS over time Strong Financial Position Capital Allocation: We’ve allocated over $2 billion in capital over the last two years through 2024 ● ~$400M of Customer Matches on Deposits and Transfers Organic Growth 1 ~$5B ~$800M ● ~$4

  15. Slide 15: We are building a track record of profitable growth

    Robinhood Investor Presentation 4 We are building a track record of profitable growth Assets Under Custody +88% Total Net Revenues +58% In billions year-over-year In millions year-over-year >10x in 5 years >10x in 5 years ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ Adjusted Operating Expenses +15% Adjusted EBITDA +167%

  16. Slide 16: Appendix

    Appendix ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ investors.robinhood.com 16

  17. Slide 17: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations

    Robinhood Investor Presentation Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations In millions 2017 2018 2019 2020 2021 2022 2023 2024 Net income (loss) (GAAP) ($6) ($57) ($107) $7 ($3,687) ($1,028) ($541) $1,411 Net margin1 (12%) (34%) (38%) 1% (203%) (76%) (29%) 48% Add: Interest expenses

  18. Slide 18: Adjusted Operating Expenses Reconciliation

    Robinhood Investor Presentation Adjusted Operating Expenses Reconciliation In millions 2017 2018 2019 2020 2021 2022 2023 2024 Total operating expenses (GAAP) $57 $231 $384 $945 $3,456 $2,369 $2,401 $1,897 Less: SBC SBC Excluding 2021 Founders Award Cancellation 1 55 27 24 1,572 654 386 304 2021 Fou

  19. Slide 19: Incremental Net Income and Incremental Adjusted EBITDA Margins

    Robinhood Investor Presentation Incremental Net Income and Incremental Adjusted EBITDA Margins In millions 2024 Year-over-year change in total net revenues +$1,086 Year-over-year change in net income +$1,952 Incremental net income margins1 180% ••‧‧•‧•‧•‧•‧‧••••‧‧‧ ‍⁣ Year-over-year change in Adjust

  20. Slide 20: Definitions

    Robinhood Investor Presentation Definitions Key Performance Metrics Glossary Terms Funded Customers Growth Rate and Annualized Growth Rate with respect to Net Deposits We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar d

  21. Slide 21: Definitions (Continued)

    Robinhood Investor Presentation Definitions (Continued) Non-GAAP Financial Measures Q4 2022 Processing Error We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In Delays in notification from third parties and pr

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