NASDAQ$HOOD

Robinhood Markets Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Robinhood's Q3 2024 results were announced, reporting a 36% year-over-year revenue increase to $637 million and a GAAP diluted EPS of $0.17.

Robinhood reported strong Q3 2024 results, with revenues up 36% year-over-year to $637 million and GAAP diluted EPS of $0.17. The company exceeded prior full-year records for both revenue and EPS. Key growth drivers included options, cryptocurrencies, and equities revenues.

  • Total net revenues increased 36% year-over-year to $637 million.
  • Net income increased year-over-year to $150 million, with a diluted EPS of $0.17.
  • Funded Customers increased by 1.0 million year-over-year to 24.3 million.
  • Assets Under Custody (AUC) increased 76% year-over-year to $152.2 billion.

Headline financials

Total Revenue

$637M

Previous: $467M+36.4%
EPS

$0.17

Previous: -$0.09+288.9%
Funded Customers

24.3M

No prior period
Investment Accounts

25.1M

No prior period
Gold Subscribers

2.2M

No prior period
Capital Expenditures

-$19M

Previous: -$6M-216.7%
Free Cash Flow

$150M

Previous: -$85M+276.5%
Net Income

$150M

Previous: -$85M+276.5%
Operating Income

$151M

Previous: -$73M+306.8%
Gross Profit

$637M

Previous: $467M+36.4%
Stock-Based Comp

$79M

Previous: $83M-4.8%

Revenue & EPS history

Robinhood · Revenue · Quarterly

$637M

Q3 2024+36.4%vs Q3 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 anticipates continued investments in new products, features, and international expansion while focusing on efficiency in existing businesses. The outlook for GAAP total operating expenses is $1.86 billion to $1.96 billion. The outlook for Non-GAAP combined Adjusted Operating Expenses and SBC for full-year 2024 is unchanged at $1.85 billion to $1.95 billion.

Tailwinds

  • Growth investments in new products
  • Growth investments in new features
  • Growth investments in international expansion
  • Focusing on efficiency in existing businesses
  • Executing on authorized $1 billion share repurchase program

Headwinds

  • Potential significant regulatory matters
  • Other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses)
  • Accruals we may determine in the future are required
  • Rate of growth in Funded Customers and our effectiveness to cross-sell products which affects variable marketing costs
  • Degree to which we are successful in managing credit losses and preventing fraud

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 Q3 2024

Historical avgQ3 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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