Robinhood Markets (NASDAQ: HOOD) has launched its month-to-month working information for July 2024, showcasing sturdy development throughout a number of key metrics, particularly in comparison with the identical month a yr earlier than. The corporate, identified for its commission-free buying and selling platform, continues to increase its consumer base and monetary footprint within the fintech panorama.
Robinhood reported a complete of 24.2 million funded prospects on the finish of July, marking a rise of roughly 70,000 from the earlier month and over a million in comparison with the identical interval final yr. This regular development within the buyer base underscores the platform’s ongoing enchantment to retail traders.
Vlad Tenev, CEO and Co-Founding father of Robinhood
Belongings Below Custody (AUC) reached $144.5 billion, representing a 3% enhance from June 2024 and a formidable 53% year-over-year (YoY) development. Internet deposits for July totaled $4.2 billion, translating to a 36% annualized development charge relative to June 2024 AUC. Over the previous twelve months, web deposits amounted to $35.8 billion, reflecting a sturdy annual development charge of 38% in comparison with July 2023 AUC.
Buying and selling volumes additionally noticed vital upticks throughout all asset lessons. Fairness notional buying and selling volumes surged to $104.4 billion, a 21% enhance from June and a 51% rise YoY. Choices contracts traded reached 160.5 million, up 22% month-over-month and over 50% on a yearly foundation. Cryptocurrency buying and selling volumes additionally confirmed sturdy momentum, hitting $5.3 billion, marking a 23% enhance from June and a 56% soar in comparison with the earlier yr.
The corporate additionally reported development in different key areas. Margin balances rose to $5.4 billion, an 8% enhance from June and a 59% surge YoY. Whole money sweep balances reached $21.8 billion, up 4% from the earlier month and 72% from the identical interval final yr. Securities lending income remained regular at $21 million in comparison with June however confirmed a 24% enhance YoY.
Strikes and Revenues
The corporate has been actively increasing its world footprint, with notable launches within the UK and choose European markets.
In a transfer to bolster its technological capabilities, Robinhood has introduced on Jeff Pinner as its new Chief Expertise Officer. Pinner, who brings precious expertise from his tenure at Cruise and Lyft, is predicted to play an important function in accelerating product growth, optimizing infrastructure, and enhancing total buyer experiences. This appointment underscores Robinhood’s concentrate on technological development as a key driver of its future success.
Concurrently, the corporate has strengthened its safety management by appointing David Schwed because the Chief Info Safety Officer for its Brokerage division. Schwed, who beforehand served as Chief Working Officer and Advisor at cybersecurity agency Halborn, brings a wealth of expertise in defending monetary platforms from evolving cyber threats.
On the monetary entrance, Robinhood reported spectacular outcomes for the second quarter of 2024. The corporate achieved record-breaking efficiency, with complete web revenues reaching $682 million. This stellar development was primarily pushed by a major enhance in transaction-based revenues and a surge in subscriptions to its premium service.
In Q2 2024, Robinhood $HOOD earned $285 million in web curiosity earnings. $134 million got here from curiosity on money and deposits* incomes 5.25%. Rate of interest cuts will probably be a significant headwind for the corporate.
* Contains money and money equivalents, money, money equal, and… pic.twitter.com/tMlmEoXUja
— Jevgenijs Kazanins (@jevgenijs) August 7, 2024
The fintech agency’s profitability additionally noticed a considerable enchancment, with web earnings rising to $188 million, equal to diluted earnings per share of $0.21. This marks a outstanding enhance from the $25 million, or $0.03 per share, reported in the identical quarter of the earlier yr. These monetary outcomes mirror Robinhood’s skill to monetize its rising consumer base and diversify its income streams successfully.