Robinhood on November 19, 2024 announced the acquisition of TradePMR. TradePMR is a portfolio management platform for Registered Investment Advisors (RIAs). They have 25 years of experience and have over $40B in assets under administration. With this $300M acquisition, Robinhood expands their offering for financial advisors to their customers. https://www.tradepmr.com/home
Robinhood presented their Q3 2024 on October 30, 2024. Revenue is up 36% yoy to $637M. Net income $150M vs loss of $85M year ago Q3 2023. Vlad Tenev CEO and Co-Founder of Robinhood says Q3 had product engine is humming. They introduced Robinhood Legend, the desktop offering, and Presidential Election Market.
HOOD traded at finished trading December 20, 2024 at 38.33 +1.39 (+3.76%). At that price, PE(TTM) is 65.70 and forward PE (NTM) is 41.22. Following the Trump presidential victory, HOOD had been on the rise on the believe that there will be less regulation and more crypto friendly.
Breakdown of the revenue is as follows:
Transaction-based: up 72% to $319M. This is broken up to:
Options revenue $202M, up 63%,
Cryptocurrencies revenue $61M up 165%
Equities $37M up 37%.
Interest revenue, up 9% to $274M
Other revenue up 42%, 44M. This is mostly Gold subscription revenue.
The other metrics show positive growth and headed in the right direction.
Gold Subscribers up 860k, 65% yoy to 2.2M.
Gold Subscriber pay $5/month. It is kind like a Costco or Netflix membership. Gold Subscriber earn 4.5% on uninvested cash, their retirement account has 3% IRA match, Options fee is $.35 vs $0.50. You get $1,000 margin free. There’s additional data and professional research. They had unlimited deposits boost of 1% that ended in November 2024. This special promotion may have helped grow the gold subscriber.
Average Revenue per User (ARPU) is up 31% to $105.
Robinhood Retirements reached $11B in AUC (asset under custody) over 1M funded retirement accounts. Average AUC/account is $10.5k.
They end the quarter with $4.6B cash and cash equivalents.
They repurchased $97M or 5.0M shares at average price of $19.42. $1B of share repurchase had been authorized to be completed in 2-3 years.
International expansion to UK. They added stock lending and margin investing to UK. They are also received Financial Conduct Authority approval for options trading which they plan to offer in 2025.
Operating expenses dropped 10% to $486M.
Funded customers grew to 24.3M, up 160K sequentially and 1M yoy.
Assets under customer (AUC) reached $152B, up 9% sequentially and 76% yoy. This may reflect the stock market recovery in 2024 and the strong performance of S&P 500, Nasdaq, Mag 7 and companies involved in AI.
Net deposits for Q3 2024 is $10B.
Source: https://s28.q4cdn.com/948876185/files/doc_financials/2024/q3/Q3-2024-Robinhood-Exhibit-99-1.pdf
https://s28.q4cdn.com/948876185/files/doc_financials/2024/q3/Q3-2024-Earnings-Presentation.pdf
https://newsroom.aboutrobinhood.com/robinhood-to-acquire-tradepmr/