Robinhood Markets, Inc. · NASDAQ:HOOD
Robinhood Markets — Q4 2024 Earnings Presentation
49 slides from Robinhood Markets's earnings presentation, Feb 12, 2025
Slide 1: Robinhood Markets, Inc. Earnings Presentation Fourth Quarter 2024
Robinhood Markets, Inc. Earnings Presentation Fourth Quarter 2024 February 12, 2025 •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ investors.robinhood.com
Slide 2: Disclaimers
Q4 2024 | Earnings Presentation Disclaimers This Presentation Relates to Robinhood’s Broader Earnings Announcement Disclosures This presentation accompanies the fourth quarter and full year 2024 earnings announcement webcast of Robinhood Markets, Inc. (including its consolidated subsidiaries, “we,”
Slide 3: Q4 2024 Business Results Highlights
Q4 2024 | Earnings Presentation Q4 2024 Business Results Highlights Funded Customers +1.8M +850k Gold Subscribers +1.2M +450k in millions year-over-year sequential in millions year-over-year sequential Gold Subscribers Gold Adoption Rate¹ 25.2 2.64 24.3 2.19 24.2 1.98 23.9 1.68 23.4 1.42 10.5% 9.0%
Slide 4: Q4 2024 Financial Results Highlights
Q4 2024 | Earnings Presentation Q4 2024 Financial Results Highlights Total Net Revenues +115% +59% Adjusted Operating Expenses +18% 9% in millions year-over-year sequential in millions year-over-year sequential $1,014 $431 $398 $407 $397 $364 $682 $637 $618 $471 $2.95B over the last twelve months $1
Slide 5: Our product velocity increased in 2024
Q4 2024 | Earnings Presentation Our product velocity increased in 2024 Brokerage Crypto Money Corporate Event •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ (1) Announced new benefits for Gold Subscribers including an unlimited 1% deposit boost on all incoming brokerage deposits and the Robinhood Gold Card (currently roll
Slide 6: 2025 Roadmap
Q4 2024 | Earnings Presentation 2025 Roadmap Active Traders Wallet Share for Next Generation Global Financial Ecosystem • Robinhood Legend enhancements • Gold Card expansion • Additional Crypto selection & Products capabilities • Futures rollout • Advisory (incl. TradePMR) • Crypto geographic expans
Slide 7: Funded Customers increased by ~1.8 million year-over-year to a record 25.2 million in Q4
Q4 2024 | Earnings Presentation Funded Customers increased by ~1.8 million year-over-year to a record 25.2 million in Q4 In millions Year-over-year change +1.8M Sequential change +850k As of Q4 2024, we had 26.2M Investment Accounts, up ~2.4M year-over-year. 26.2 24.8 25.1 25.2 Investment Accounts 2
Slide 8: Assets Under Custody increased 88% year-over-year to a quarterly record $193 billion
Q4 2024 | Earnings Presentation Assets Under Custody (AUC) increased 88% year-over-year to a quarterly record $193 billion in Q4, primarily due to continued Net Deposits and higher equity and crypto valuations Year-over- Sequential In billions year change change $193 +88% +27% $25 +41% +1% $152 $130
Slide 9: Retirement AUC grew to more than $13 billion in Q4
Q4 2024 | Earnings Presentation Retirement AUC grew to more than $13 billion in Q4 Retirement Accounts Retirement AUC Retirement AUC per Account1 End of period, in thousands End of period, in billions End of period, in thousands ~50% higher than Average AUC per Funded Customer2 as of Q4 2024 Over 7x
Slide 10: We continue to add value to Robinhood Gold
Q4 2024 | Earnings Presentation We continue to add value to Robinhood Gold, and Q4 2024 Gold Subscribers represented 10.5% of Funded Customers Gold Subscribers receive meaningful value for $5 per month1 Gold Subscribers In millions 4% APY on uninvested cash Gold Subscribers Gold Adoption Rate⁴ Cash
Slide 11: Net Deposits were a record $16 billion in Q4
Q4 2024 | Earnings Presentation Net Deposits were a record $16 billion in Q4, translating to a 42% annualized growth rate, and were $51 billion over the last twelve months, translating to a 49% growth rate In billions Last twelve months Net Deposits $50.5 Last twelve months growth rate 49% $16.1 $13
Slide 12: Average cumulative Net Deposits tend to grow over time across Funded Customer Cohorts
Q4 2024 | Earnings Presentation Average cumulative Net Deposits1 tend to grow over time across our Funded Customer Cohorts2, and recent cohorts' initial Net Deposits are larger $10,000 $8,000 $6,000 $4,000 •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ $2,000 $— 0 4 8 12 16 Quarters Customer Cohort Key 2020 2021 2022 2023
Slide 13: Q4 trading volumes increased double- to triple-digits year-over-year
Q4 2024 | Earnings Presentation Q4 trading volumes increased double- to triple-digits year-over-year as we continue to gain market share Equity Notional Volumes Options Contracts Traded Crypto Notional Volumes In $ billions In millions of contracts In $ billions Up 154% Y/Y and up 48% Q/Q Up 61% Y/Y
Slide 14: Total net revenues in Q4 were up 115% to a record $1.01 billion
Q4 2024 | Earnings Presentation Total net revenues in Q4 were up 115% year-over-year to a record $1.01 billion, and ARPU was $164 In millions, except for ARPU $164 Year-over- Sequential year change change $1,014 +115% +59% $113 $46 Average Revenue per User (ARPU) $104 $105 +31% +5% $84 $80 $81 $296
Slide 15: Transaction-based revenues were up over 200% to a record $672 million
Q4 2024 | Earnings Presentation Transaction-based revenues were up over 200% year-over-year to a record $672 million in Q4 In millions Year-over- Sequential year change change $672 +236% +111% $31 +182% +63% $358 +733% +487% $10 $9 $329 $327 $319 $2 $10 $11 $11 $24 $19 •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ $81 $6
Slide 16: Net interest revenues were up 25% to a record $296 million
Q4 2024 | Earnings Presentation Net interest revenues were up 25% year-over-year to a record $296 million in Q4 In millions Year-over-year change +25% Sequential change +8% $8 $6 $4 $4 $6 $285 $296 $5 $274 Credit card, net $251 $254 $34 $19 $26 Securities lending, net $234 $17 $236 $15 $50 Cash Swee
Slide 17: Adjusted Operating Expenses increased 18% to $431 million in Q4
Q4 2024 | Earnings Presentation Adjusted Operating Expenses increased 18% year-over-year to $431 million in Q4 In millions Year-over-year change +18% Sequential change +9% $407 $431 $398 $397 $19 $352 $357 $353 $364 $16 $18 $23 $97 $319 $9 $6 $14 $14 $106 $106 $98 $8 $108 $110 $100 $107 $90 $80 $65
Slide 18: Diluted share count increased 1% year-over-year in Q4
Q4 2024 | Earnings Presentation Diluted share count increased1% year-over-year in Q4, and we anticipate diluted share count will be roughly flat in 2025 Basic and Diluted Share Count Share-Based Compensation Expense in millions in millions Year-over- $86 year change $81 $79 +0.9% $77 915 924 926 918
Slide 19: We have designed a 2025 expense plan to drive another year of profitable growth
Q4 2024 | Earnings Presentation We have designed a 2025 expense plan to drive another year of profitable growth In billions • We've built a 2025 expense plan to drive another year of profitable growth, including: Up ~10% ◦ Investing for growth across new products, features, and Up ~7% at midpoint $2
Slide 20: GAAP net income was a record $916 million in Q4
Q4 2024 | Earnings Presentation GAAP net income was a record $916 million in Q4 and diluted EPS was $1.01, which included a $424 million benefit from the Q4 2024 Tax Benefit and Regulatory Accrual Reversal 2024 Net Income In millions, except for EPS Year-over-year change +$886 $1.41B Sequential chan
Slide 21: Adjusted EBITDA was a record $613 million in Q4
Q4 2024 | Earnings Presentation Adjusted EBITDA was a record $613 million in Q4 and has grown to more than $1.4 billion over the last twelve months LTM Adjusted EBITDA Year-over-year change +$480 In millions $1.43B Sequential change +$345 (48% margin) $613 $301 $268 •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ $247 $115
Slide 22: Rule of 40 results demonstrate the power of our business model
Q4 2024 | Earnings Presentation Rule of 401 results demonstrate the power of our business model 106% 75% 69% 71% 66% 48% 39% 29% 33% 37% 40% •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ 58% 37% 36% 34% 36% Q4'23 LTM Q1'24 LTM Q2'24 LTM Q3'24 LTM Q4'24 LTM Y/Y Change in Total Net Revenues Adjusted EBITDA Margin Rule of 4
Slide 23: With over $5B in corporate cash, investments, and stablecoin
Q4 2024 | Earnings Presentation With over to $5B in corporate cash, investments, and stablecoin1, we are well positioned to continue deploying capital In billions Year-over-year change ($0.2) Sequential change $— • Our balance sheet remains strong with over $5 billion of corporate cash, investments,
Slide 24: In Q4, we returned $160 million to shareholders through repurchases
Q4 2024 | Earnings Presentation In Q4, we returned $160 million to shareholders by repurchasing ~5 million of our shares1 Share Repurchases In millions As of 12/31/2024 $160 • In Q3 2024, we began returning capital to shareholders under our $1 billion share repurchase $97 program. $743M Remaining •
Slide 25: Appendix
Appendix •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ 25
Slide 26: We are building a track record of profitable growth
Q4 2024 | Earnings Presentation 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 $193 >10x in 5 years $2,951 $1,815 $1,865 $98 $103 $1,358 $63 $62 $958 $8 $14 $168 $278 $5 $49 2
Slide 27: December 2024 Monthly Metrics
Q4 2024 | Earnings Presentation December 2024 Monthly Metrics We have included January 2025 metrics to provide insight into our most recent business activity. We will provide our January 2025 Monthly Metrics release in the coming weeks. 2023 2024 Change 2025 Nov Dec Jan Feb Mar Apr May Jun Jul Aug S
Slide 28: December 2024 Monthly Metrics Dashboard
Q4 2024 | Earnings Presentation December 2024 Monthly Metrics Dashboard •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ investors.robinhood.com 28
Slide 29: December 2024 Monthly Metrics Dashboard (Continued)
Q4 2024 | Earnings Presentation December 2024 Monthly Metrics Dashboard (Continued) •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ investors.robinhood.com 29
Slide 30: Changes in Funded Customers and Assets Under Custody
Q4 2024 | Earnings Presentation Changes in Funded Customers and Assets Under Custody Funded Customers In millions Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Beginning Funded Customers 22.9 23.0 23.1 23.2 23.3 23.4 23.9 24.2 24.3 New Customers 0.2 0.3 0.2 0.3 0.3 0.5 0.5 0.4 0.8 Resurrecte
Slide 31: Net Cash Held by Users Reconciliation
Q4 2024 | Earnings Presentation Net Cash Held by Users Reconciliation In billions Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Gold Cash Sweep $4.8 $8.0 $11.1 $12.9 $15.7 $18.2 $20.3 $23.9 $25.4 Non-Gold Cash Sweep 1.0 0.9 0.8 0.7 0.7 0.8 0.6 0.6 0.7 Total Cash Sweep $5.8 $8.9 $11.9 $13.6 $
Slide 32: Trading Volumes for Q4 2024
Q4 2024 | Earnings Presentation Trading Volumes for Q4 2024 Equity Notional Volumes Options Contracts Traded Crypto Notional Volumes Up 154% Y/Y and up 48% Q/Q, driven by: Up 61% Y/Y and up 8% Q/Q, driven by: Up 455% Y/Y and up 393% Q/Q, driven by: Customers placing trades Customers placing trades C
Slide 33: Monthly Active Users increased by 4.0 million to 14.9 million in Q4
Q4 2024 | Earnings Presentation Monthly Active Users (MAU) increased by 4.0 million year-over-year to 14.9 million in Q4 In millions Year-over-year change +4.0 Sequential change +3.9 14.9 13.7 11.8 10.9 11.0 •‧•‧•‧‧•‧‧‧•••‧•‧‧‧‧ Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 investors.robinhood.com 33
Slide 34: Annualized revenue per employee was $1.8 million in Q4
Q4 2024 | Earnings Presentation Annualized revenue per employee1 was $1.8 million in Q4, up 104% year-over-year Year-over-year Sequential Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 change change End of period Employee Count 2,189 2,228 2,277 2,287 2,298 +5% —% Total Net Revenues (in millions) $471 $618 $682 $637
Slide 35: Contra revenues associated with customer matches
Q4 2024 | Earnings Presentation In Q4 2024, we recorded $43 million of contra revenues associated with matches on customer transfers and deposits and allocated them on a proportional basis Customer Match Contra Revenue Allocation in millions Customer Match Amortization Detail Customer Transfer and C
Slide 36: Net interest revenues were $296 million in Q4
Q4 2024 | Earnings Presentation Net interest revenues were $296 million in Q4, up 25% year-over-year In millions Year-over- Sequential Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 year change change Interest on corporate cash and investments1 $63 $68 $74 $75 $71 $70 $66 $67 $53 (25%) (21%)
Slide 37: Total interest earning assets grew to ~$44B in Q4
Q4 2024 | Earnings Presentation Total interest earning assets grew to ~$44B in Q4, and average yield decreased by 20 bps sequentially In millions, except for annualized yields Interest expenses (1) Cash Sweep (2) Total interest- Securities lending, Total net interest Margin Book Cash and deposits Cr
Slide 38: Interest Earning Assets grew 47% year-over-year to $44 billion
Q4 2024 | Earnings Presentation In Q4, Interest Earning Assets grew 47% year-over-year to $44 billion $0.4 Year-over- Sequential year change change In billions $0.3 $0.2 $44 +47% +7% $0.2 $41 +100% +33% $7.9 $0.2 $36 $5.5 $0.2 $0.2 $34 +126% +44% $30 $4.1 $5.0 $9.9 (2%) (11%) $26 $26 $3.5 $11.1 $22
Slide 39: Total securities lending revenue increased 106% to a record $70 million
Q4 2024 | Earnings Presentation Total securities lending revenue increased by 106% year-over-year to a record $70 million in Q4, and fully paid securities lending was 39% of total securities lending In millions, unless specified Year-over- Sequential Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Total securities le
Slide 40: Fully diluted shares decreased by over 2% year-over-year
Q4 2024 | Earnings Presentation Fully diluted shares decreased by over 2% year-over-year as we continue to closely manage share-based compensation Price per Class A Share (End of period) $12.74 $20.13 $22.71 $23.42 $37.26 December 31, 2024 In millions, except prices and percentages December 31, 2023
Slide 41: Adjusted Operating Expenses and SBC Reconciliation
Q4 2024 | Earnings Presentation Adjusted Operating Expenses and SBC Reconciliation In millions Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Total operating expenses (GAAP) $534 $950 $466 $540 $445 $460 $493 $486 $458 Less: SBC SBC Excluding 2021 Founders Award Cancellation 160 113 109 83 81
Slide 42: Adjusted Operating Expenses Reconciliation
Q4 2024 | Earnings Presentation Adjusted Operating Expenses Reconciliation In millions Operating expenses (GAAP) Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Brokerage and transaction $85 $36 $39 $39 $32 $35 $40 $39 $50 Technology and development 180 199 207 202 197 196 209 205 208 Operatio
Slide 43: Adjusted Operating Expenses and SBC Reconciliation
Q4 2024 | Earnings Presentation Adjusted Operating Expenses and SBC 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
Slide 44: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
Q4 2024 | Earnings Presentation Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations In millions Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Net income (loss) ($166) ($511) $25 ($85) $30 $157 $188 $150 $916 Net margin1 (44%) (116%) 5% (18%) 6% 25% 28% 24% 90% Add: Interest expenses r
Slide 45: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
Q4 2024 | Earnings Presentation Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations In millions 2017 2018 2019 2020 2021 2022 2023 2024 Net income (loss) ($6) ($57) ($107) $7 ($3,687) ($1,028) ($541) $1,411 Net margin1 (12%) (34%) (38%) 1% (203%) (76%) (29%) 48% Add: Interest expenses related
Slide 46: Q4 2024 Net Income and EPS Prior to Tax Benefit Reconciliations
Q4 2024 | Earnings Presentation Q4 2024 Net Income Prior to Tax Benefit and Regulatory Accrual Reversal and Q4 2024 EPS Prior to Tax Benefit and Regulatory Accrual Reversal Reconciliations Q4 2024 Net Income Prior to Tax Benefit and Regulatory Accrual Reversal In millions Q4'23 Q3'24 Q4'24 Net incom
Slide 47: Incremental Net Income and Incremental Adjusted EBITDA Margins
Q4 2024 | Earnings Presentation Incremental Net Income and Incremental Adjusted EBITDA Margins In millions Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Year-over-year change in total net revenues +$91 +$177 +$196 +$170 +$543 Year-over-year change in net income +$196 +$668 +$163 +$235 +$886 Incremental net income m
Slide 48: Definitions
Q4 2024 | Earnings Presentation Definitions Key Performance Metrics Funded Customers Glossary Terms 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 days (a) had an account balance that was greater than zero (excludi
Slide 49: Definitions (Continued)
Q4 2024 | Earnings Presentation Definitions (Continued) Non-GAAP Financial Measures SBC excluding the 2021 Founders Award Cancellation We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total n