Robinhood, the financial services company, reported a significant improvement in its financial performance for the first quarter of 2024 compared to the same period in 2023. Total net revenues surged by 40% to $618 million, while net income reached $157 million, a stark contrast to the net loss of $511 million in the previous year. Diluted earnings per share (EPS) were $0.18, compared to a diluted loss per share of -$0.57. Operating expenses saw a substantial decrease of 52% to $460 million. Adjusted EBITDA, a non-GAAP financial measure, doubled to $247 million, marking a 115% increase. The company's user base grew modestly, with Funded Customers increasing by 3% to 23.9 million and Investment Accounts rising by 1.1 million to 24.4 million. Assets Under Custody (AUC) experienced a 65% jump to $129.6 billion, primarily due to higher...Show More

Robinhood, the financial services company, reported a significant improvement in its financial performance for the first quarter of 2024 compared to the same period in 2023. Total net revenues surged by 40% to $618 million, while net income reached $157 million, a stark contrast to the net loss of $511 million in the previous year. Diluted earnings per share (EPS) were $0.18, compared to a diluted loss per share of -$0.57. Operating expenses saw a substantial decrease of 52% to $460 million. Adjusted EBITDA, a non-GAAP financial measure, doubled to $247 million, marking a 115% increase. The company's user base grew modestly, with Funded Customers increasing by 3% to 23.9 million and Investment Accounts rising by 1.1 million to 24.4 million. Assets Under Custody (AUC) experienced a 65% jump to $129.6 billion, primarily due to higher equity and cryptocurrency valuations and continued Net Deposits. Net Deposits themselves showed a robust annualized growth rate of 44%. Average Revenue Per User (ARPU) increased by 35% to $104, and Gold Subscribers grew by 42% to 1.68 million. In terms of business development, Robinhood has shifted its focus from Monthly Active Users (MAU) to deepening customer relationships and increasing wallet share through products like Robinhood Gold, Robinhood Retirement, and new offerings such as credit cards. The company has also added Gold Subscribers as a key performance metric. Looking ahead, Robinhood plans to continue investing in its existing products and features while launching new ones to increase wallet share and customer engagement. The company's mission remains to democratize finance for all, making financial services accessible to a broader audience regardless of wealth, income, or background.