Robinhood Markets, Inc. · NASDAQ:HOOD
Robinhood Markets — Investor Presentation (December 2023)
20 slides from Robinhood Markets's investor presentation, Dec 4, 2023
Slide 1: Robinhood Markets, Inc. Investor Presentation December 2023
Robinhood Markets, Inc. Investor Presentation December 2023 investors.robinhood.com
Slide 2: Disclaimers
Disclaimers 2 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 subsidiaries, “we,” “Robinhood,” or t
Slide 3: Robinhood at a Glance
Robinhood at a Glance We offer a comprehensive suite of financial products aimed at addressing all of our customers’ critical financial needs… Founded in 2013, our mission is to democratize finance for all. In 2023, we have focused on: § Deepening relationships with our customers § Becoming the #1 p
Slide 4: Robinhood Investment Highlights
Robinhood Investment Highlights 1 2 3 5 6 Bold mission and industry-leading innovation have led to 23M+ customer base Robust organic asset growth of ~20% on an annualized basis1 Growing and diversified annual revenues approaching $2B Expense discipline driving operating leverage and increasing Adjus
Slide 5: Our innovations are democratizing finance
1.9 3.3 5.1 12.5 22.7 23.0 23.3 Our innovations are democratizing finance AUC (in billions) $5 $8 $14 $63 $98 $62 $87 2015 - 2017 2018 2019 2020 2021 2022 YTD 20231 Mobile-First, Commission-Free Investing Pioneered mobile-first, commission-free investing with no account minimums - democratizing acce
Slide 6: We've continued to deliver on our aggressive roadmap in 2023
We’ve continued to deliver on our aggressive roadmap in 2023 Brokerage MoneyCrypto Corporate Event 6 (1) Robinhood 24 Hour Market was made available to 100% of customers in July 2023. (2) X1 transaction closed on July 3, 2023, for ~$104 million in cash, comprised of an estimated entity value of ~$90
Slide 7: US household wealth is moving towards Robinhood's core customer demographic
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 19 89 19 91 19 93 19 95 19 97 19 99 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Ju n-2 3 $6 $49 $24 $8 26 and under 27 - 42 43 - 58 59 and up US household wealth is moving towards Robinhood’s core customer demographic Share of US household wealt
Slide 8: We believe we have a significant global opportunity
US Rest of World3 ~8 Billion People We believe we have a significant global opportunity The share of US households with stock holdings has increased by ~10% since Robinhood was founded in 20131 8 49% 52% 53% 58% 2013 2016 2019 2022 Robinhood’s 23.3M NCFA2 represents ~9% of US adults3 (1) Data from F
Slide 9: Strong brand and innovative products translate to robust organic asset growth and retention
Our strong brand and innovative products translate to robust organic asset growth and customer retention Net Deposits $66 $109 $103 $59 $77 2019 2020 2021 2022 LTM Sep-23 Average Revenue per User (ARPU)1 Assets Under Custody (AUC) Customer Retention Rate1 9 85% 88% 84% 96% 97% 2019 2020 2021 2022 LT
Slide 10: We believe we can continue growing and diversifying our revenues
$171 $720 $1,402 $814 $771 $71 $177 $257 $424 $860 $36 $62 $156 $120 $143 $278 $959 $1,815 $1,358 $1,774 2019 2020 2021 2022 LTM Sep-23 We believe we can continue growing and diversifying our revenues Transaction-Based Revenues1 Other Revenues3Net Interest Revenues2 in millions 13% 26% 61% 7% 18% 75
Slide 11: Our business model is naturally hedged through market cycles
61% 75% 77% 60% 43% 26% 18% 14% 31% 49% 13% 7% 9% 9% 8% 2019 2020 2021 2022 LTM Sep-23 Our business model is naturally hedged through market cycles between transaction- based and net interest revenues (1) Data from Cboe Exchange, Inc. (2) Data from New York Federal Reserve. (3) Defined as total net
Slide 12: We are focused on continuing to drive profitable growth
($74) $154 $33 ($94) $485 (27%) 16% 2% (7%) 27% 2019 2020 2021 2022 LTM Sep-23 We are focused on continuing to drive profitable growth Total Net Revenues Adjusted EBITDA1 Adjusted Operating Expenses1 12 in millionsin millions 5 in millions SBC as a Percentage of Total Net Revenues2 (1) Adjusted Oper
Slide 13: We are well positioned to deploy capital
We are well positioned to deploy capital We have over $5B in corporate cash and investments1 on our balance sheet... ...and have generated $485M of Adjusted EBITDA2 on a LTM basis... in billions in millions ...providing us with flexibility to use excess cash to grow our business and drive shareholde
Slide 14: Bold mission and industry-leading innovation have led to 23M+ customer base
14 1 2 3 5 6 Bold mission and industry-leading innovation have led to 23M+ customer base Robust organic asset growth of ~20% on an annualized basis1 Growing and diversified annual revenues approaching $2B Expense discipline driving operating leverage and increasing Adjusted EBITDA Strong balance she
Slide 15: Appendix
Appendix
Slide 16: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations 16 in millions 2019 2020 2021 2022 LTM Sep-23 Net income (loss) ($107) $7 ($3,687) ($1,028) ($737) Net margin1 (38%) 1% (203%) (76%) (42%) Add: Interest expenses related to credit facilities 1 5 20 24 23 Add: Provision for (benefit from) inc
Slide 17: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Continued)
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Continued) 17(1) Net margin is calculated as net income (loss) divided by total net revenues for a given period. (2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total net revenues for a given period. in millions Q3’22
Slide 18: Adjusted Operating Expenses Reconciliation
Adjusted Operating Expenses Reconciliation 18 in millions 2019 2020 2021 2022 LTM Sep-23 Total operating expenses (GAAP) $384 $945 $3,456 $2,369 $2,490 Less: SBC 2021 Founders Award Cancellation - - - - 485 SBC excluding 2021 Founders Award Cancellation 27 24 1,572 654 465 Less: Restructuring charge
Slide 19: Definitions
Definitions 19 Performance Metrics Net Cumulative Funded Accounts (“NCFA”) We define “Net Cumulative Funded Accounts” as New Funded Accounts less Churned Accounts plus Resurrected Accounts (each as defined below). We define a “New Funded Account” as a Robinhood Account into which the user makes an i
Slide 20: Definitions (Continued)
Definitions (Continued) 20 Non-GAAP Financial Measures 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 net revenues, net income (loss) and other results under GAAP, we utilize Adjusted
Robinhood Markets — Investor Presentation (December 2023) on 6ix