NASDAQ$HOOD

Robinhood Markets Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Robinhood achieved GAAP profitability for the first time as a public company, driven by revenue growth and expense management.

Robinhood reported a profitable Q2 2023, with a net income of $25 million, or $0.03 EPS. Total net revenues increased 10% sequentially to $486 million, driven by higher net interest revenues and seasonally higher proxy revenue, partially offset by lower transaction-based revenues. The company also saw growth in assets under custody and net deposits.

  • Total net revenues increased 10% sequentially to $486 million.
  • Net income was $25 million, or earnings per share (EPS) of $0.03.
  • Assets Under Custody (AUC) increased 13% sequentially to $89 billion.
  • Net Deposits were $4.1 billion, translating to an annualized growth rate of 21%.

Headline financials

Total Revenue

$486M

Previous: $318M+52.8%
EPS (adj)

$0.03

Previous: -$0.34+108.8%
Net Deposits

$4.1B

Previous: $5.2B-21.2%
ARPU

$84.00

Previous: $56.00+50.0%
Free Cash Flow

$25M

Previous: -$295M+108.5%
Net Income

$25M

Previous: -$295M+108.5%
Operating Income

$20M

Previous: -$292M+106.8%
Gross Profit

$486M

Previous: $318M+52.8%
Cash & Equivalents

$5.83B

Previous: $5.96B-2.2%
Total Assets

$28.7B

Previous: $24.5B+16.8%
Stock-Based Comp

$109M

Previous: $164M-33.5%

Revenue & EPS history

Robinhood · Revenue · Quarterly

$486M

Q2 2023+52.8%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Robinhood · $293M total across 2 segments · Q2 2023

  • Net interest
    $234M+216.2%
  • Other revenue
    $59M+40.5%

Forward guidance

Robinhood provided an improved expense outlook for 2023 based on Q2 2023 results.

Tailwinds

  • GAAP total operating expenses for full-year 2023 are expected to be in the range of $2.330 billion to $2.410 billion.
  • SBC for full-year 2023, including the 2021 Founders Award Cancellation ($485 million in Q1 2023), is expected to be in the range of $900 million to $940 million.

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 Q2 2023

Historical avgQ2 2023

-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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