NASDAQ$HOOD

Robinhood Markets Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Robinhood's Q4 2023 results were announced, featuring a 24% increase in total net revenues and positive GAAP net income.

Robinhood reported a strong Q4 2023 with a 24% increase in total net revenues to $471 million and a return to profitability with a GAAP net income of $30 million. The company saw growth in net interest revenue and transaction-based revenue, driven by cryptocurrencies and equities, and an increase in funded customers and assets under custody.

  • Total net revenues increased by 24% year-over-year to $471 million.
  • GAAP net income was $30 million, or $0.03 per share, a significant improvement from the previous year's net loss.
  • Net deposits amounted to $4.6 billion, reflecting a 21% annualized growth rate.
  • Funded customers increased to 23.4 million, a rise of 420 thousand year-over-year.

Headline financials

Total Revenue

$471M

Previous: $380M+23.9%
EPS (adj)

$0.03

Previous: -$0.19+115.8%
Net Deposits

$4.6B

Previous: $4.8B-4.2%
ARPU

$81.00

Previous: $66.00+22.7%
Capital Expenditures

-$6M

No prior period
Net Income

$30M

Previous: -$166M+118.1%
Operating Income

$29M

Previous: -$168M+117.3%
Gross Profit

$441M

Previous: $289M+52.6%
Stock-Based Comp

$81M

Previous: $160M-49.4%

Revenue & EPS history

Robinhood · Revenue · Quarterly

$471M

Q4 2023+23.9%vs Q4 2022
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

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

Tailwinds

  • Growth investments in new products
  • Growth investments in new features
  • Growth investments in international expansion
  • Getting more efficient in existing businesses

Headwinds

  • Rate of growth in Funded Customers affects variable marketing costs
  • Effectiveness to cross-sell products affects variable marketing costs
  • Degree to which we are successful in managing credit losses
  • Degree to which we are successful preventing fraud
  • Ability to manage web-hosting expenses efficiently

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 Q4 2023

Historical avgQ4 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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