NASDAQ$HOOD

Robinhood Markets Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported record revenues and EPS, driven by strong growth in transaction-based revenue and net interest revenue.

Robinhood reported a strong first quarter in 2024, with record revenues of $618 million, up 40% year-over-year, and a record GAAP diluted EPS of $0.18. The company saw growth in transaction-based revenues, net interest revenues, and other revenues. Net deposits reached a record $11.2 billion, and Gold subscribers hit a new high of 1.7 million.

  • Total net revenues increased 40% year-over-year to $618 million.
  • Net income increased year-over-year to $157 million, with diluted EPS of $0.18.
  • Net Deposits were $11.2 billion, representing an annualized growth rate of 44%.
  • Gold Subscribers increased by 42% year-over-year to 1.7 million.

Headline financials

Total Revenue

$618M

Previous: $441M+40.1%
EPS

$0.18

Previous: -$0.57+131.6%
Funded Customers

23.9M

No prior period
Investment Accounts

24.3M

No prior period
Total Platform Assets

$130B

No prior period
Gold Subscribers

1.7M

No prior period
ARPU

$104.00

Previous: $77.00+35.1%
Capital Expenditures

-$9M

No prior period
Free Cash Flow

$157M

Previous: -$511M+130.7%
Net Income

$157M

Previous: -$511M+130.7%
Operating Income

$158M

Previous: -$509M+131.0%
Gross Profit

$618M

Previous: $441M+40.1%
Stock-Based Comp

$62M

Previous: $598M-89.6%

Revenue & EPS history

Robinhood · Revenue · Quarterly

$618M

Q1 2024+40.1%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Robinhood · $282M total across 2 segments · Q3 2023

  • Net interest
    $251M+96.1%
  • Other revenue
    $31M+24.0%

Forward guidance

Robinhood expects GAAP total operating expenses and Non-GAAP combined Adjusted Operating Expenses and SBC for full-year 2024 to be in the range of $1.85 billion to $1.95 billion.

Tailwinds

  • Growth investments in new products and features.
  • International expansion.
  • Focus on efficiency in existing businesses.
  • Driving profitable growth in 2024.
  • Strong start to Q2 with high net deposits and Gold subscriber growth in April.

Headwinds

  • Actual results might differ materially from outlook.
  • Rate of growth in Funded Customers affects variable marketing costs.
  • Effectiveness in managing credit losses and preventing fraud.
  • Ability to manage web-hosting expenses efficiently.
  • Potential significant regulatory matters or other significant expenses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.4%

Avg return

Earnings day

-2.8%

Avg return

5 days after

+1.9%

Avg return

30 days after

36%

9 / 25 earnings

Positive

+14.1%

Q4 2024

Best reaction

-16.2%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%-6.7%+14.9%
Q4 2025+0.0%-26.9%-20.8%
Q3 2025-8.8%-7.4%-7.4%
Q2 2025-2.9%-0.6%-2.0%
Q1 2025-5.1%-0.9%+34.7%
Q4 2024+14.1%+2.3%-9.7%
Q3 2024-16.2%-13.2%+33.9%
Q2 2024+3.0%+7.7%+10.1%
Q1 2024-3.8%-6.1%+23.3%
Q4 2023+11.4%-4.1%+50.6%
Q3 2023-12.8%-14.2%+19.7%
Q2 2023-10.3%-11.9%-13.7%
Q1 2023+5.9%-5.0%+3.3%
Q4 2022-4.5%+5.8%-5.2%
Q3 2022+3.4%+0.9%-16.2%
Q2 2022+14.0%+15.0%+6.5%
Q1 2021-10.5%-23.2%-13.6%
Q1 2022+3.1%+6.2%+9.1%
Q4 2019+6.9%+8.4%+14.1%
Q4 2021+2.6%+18.0%-6.4%
Q3 2020-1.7%+4.4%-21.3%
Q3 2021-9.2%-10.4%-28.3%
Q2 2020-4.2%-3.0%-9.2%
Q2 2021-4.2%-3.0%-9.2%
Q4 2020-4.2%-3.0%-9.2%
Q3 2019
Q2 2019
Q1 2019

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