Robinhood Markets, Inc. · NASDAQ:HOOD
Robinhood Markets — Investor Presentation (December 2023)
20 slides from Robinhood Markets's investor presentation, December 2023
Slide 1: Robinhood Markets, Inc. Investor Presentation
Robinhood Markets, Inc. Investor Presentation December 2023 investors.robinhood.com
Slide 2: Disclaimers
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 subsidiaries, “we,” “Robinhood,” or the
Slide 3: Robinhood at a Glance
We offer a comprehensive suite of financial Robinhood at a Glance products aimed at addressing all of our customers’ critical financial needs… Founded in 2013, our mission is to democratize finance for all. Brokerage § Equities In 2023, we have focused on: § Options § Margin § Deepening relationship
Slide 4: Robinhood Investment Highlights
Robinhood Investment Highlights 1 Bold mission and industry-leading innovation have led to 23M+ customer base 2 Robust organic asset growth of ~20% on an annualized basis1 3 Growing and diversified annual revenues approaching $2B 4 Natural hedges between transaction-based and net interest revenues 5
Slide 5: Our innovations are democratizing finance
1 Our innovations are democratizing finance News & Education Mobile-First, 23.3 Reimagined financial 22.7 23.0 Commission-Free information with a weekly Investing newsletter, daily podcast, 24 Hour Market personalized in-app Higher Yields on Pioneered mobile-first, newsfeed, and a new Gold Cash Swee
Slide 6: We've continued to deliver on our aggressive roadmap in 2023
1 We’ve continued to deliver on our aggressive roadmap in 2023 Brokerage Crypto Money Corporate Event (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 ~$9
Slide 7: US household wealth is moving towards Robinhood's core customer demographic
1 US household wealth is moving towards Robinhood’s core customer demographic Share of US household wealth by generation1 Distribution of AUC at Robinhood by age2 in billions 100% 90% Millennials Silent Generation & Older Median Robinhood 80% Customer Age2: 34 $49 70% 60% Generation X 50% Baby Boome
Slide 8: We believe we have a significant global opportunity
1 We believe we have a significant global opportunity The share of US households with stock Billions of potential customers outside of holdings has increased by ~10% since the US Robinhood was founded in 20131 ~8 Billion People Robinhood’s 23.3M NCFA2 represents 58% 49% 52% 53% ~9% Rest of World3 of
Slide 9: Strong brand and innovative products translate to robust organic asset growth
2 Our strong brand and innovative products translate to robust organic asset growth and customer retention Net Deposits Growth Rate (%)1 Assets Under Custody (AUC) in billions in billions $31 $27 $98 $87 NM $18 $17 $63 $62 NM 43% 19% 27% $4 $14 2019 2020 2021 2022 LTM Sep-23 2019 2020 2021 2022 LTM
Slide 10: We believe we can continue growing and diversifying our revenues
3 We believe we can continue growing and diversifying our revenues Transaction-Based Revenues1 Net Interest Revenues2 Other Revenues3 Near-term growth and diversification opportunities in millions $1,815 $1,774 $156 9% $143 8% $257 14% $1,358 Retirement Gold $120 9% $860 49% $959 $424 31% $62 7% $17
Slide 11: Business model naturally hedged through market cycles
4 Our business model is naturally hedged through market cycles between transaction- based and net interest revenues Trading activity and interest rates tend to move in opposite Our revenue profile evolves through cycles directions Transaction-Based Revenues Net Interest Revenues Other Revenues Y/Y C
Slide 12: We are focused on continuing to drive profitable growth
5 We are focused on continuing to drive profitable growth $400M+ ($150M+) Total Net Revenues +31% Adjusted Operating Expenses1 (10%) in millions in millions $1,815 $1,774 $1,829 $1,533 $1,358 $1,381 $959 $819 $278 $357 2019 2020 2021 2022 LTM Sep-23 2019 2020 2021 2022 LTM Sep-23 Adjusted EBITDA1 Ad
Slide 13: We are well positioned to deploy capital
6 We are well positioned to deploy capital We have over $5B in corporate cash and ...and have generated $485M of ...providing us with flexibility to use investments1 on our balance sheet... Adjusted EBITDA2 on a LTM basis... excess cash to grow our business and in billions in millions drive sharehol
Slide 14: Bold mission and industry-leading innovation have led to 23M+ customer base
Bold mission and industry-leading innovation have led to 23M+ 1 customer base 2 Robust organic asset growth of ~20% on an annualized basis1 3 Growing and diversified annual revenues approaching $2B Natural hedges between transaction-based and net interest 4 revenues Expense discipline driving operat
Slide 15: Appendix
Appendix Robinhood # |
Slide 16: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations 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) income
Slide 17: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Continued)
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Continued) in millions Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Net income (loss) ($175) ($166) ($511) $25 ($85) Net margin1 (48%) (44%) (116%) 5% (18%) Add: Interest expenses related to credit facilities 6 6 6 5 6 Add: Provision for (benefit from) in
Slide 18: Adjusted Operating Expenses Reconciliation
Adjusted Operating Expenses Reconciliation 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 charges -
Slide 19: Definitions
Definitions Performance Metrics Net Cumulative Funded Accounts (“NCFA”) Growth Rate and Annualized Growth Rate with respect to Net Deposits We define “Net Cumulative Funded Accounts” as New Funded Accounts less Churned Accounts plus Resurrected When used with respect to Net Deposits, "growth rate" a
Slide 20: Definitions (Continued)
Definitions (Continued) Non-GAAP Financial Measures We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and Adjusted Operating Expenses assess our performance. In addition to total net revenues, net income (loss) and other results under
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