Robinhood Markets (HOOD) 28 Jan 222021 Q4 Earnings call transcript

Thank you for standing by and welcome to Robinhood’s Fourth Quarter and Full Year 2021 Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to your host, Irvin Sha. Please go ahead.

Thanks, Latif and welcome to everyone. joining earnings Robinhood's conference for full quarter you XXXX year call. thank us fourth for and And With us today and CFO, are CEO and Warnick. Co-Founder, Jason Vlad Tenev;

Before as the this differ first our that afternoon, and that factors related full from our results remind forward-looking our want could XXXX, XXXX, materially about press and quarter cause getting are our release as operational described potential and of there issued from will to our filed use intend no on required Actual time, And well on expectations. presentation statements for presentation strategic could contain in you outlook Robinhood's website, Form year started, I our today's duty to of for the differences slide as risk XXXX, in Relations the October law. that time investors Other means undertake today, we the could as Investor as blog events except other Hood to XX-Q and subsequent plans. be routinely SEC to our website Under January is information. disclosing posted monitor be filings. All to to on at blog.robinhood.com of call deemed by information public. should our a remind XX, the we blog information information We as material material XX, you update our

Investor most at period be to the Reconciliations discussion that. to discuss me website in growth the comparable consider our will to measures. non-GAAP will same on year, earnings in include turn presentation found GAAP to With financial we unless As results, can results over our Vlad. the percentage noted. also Relations all prior be let investors.robinhood.com. be it the otherwise Today's comparisons

total year to Robinhood accounts XX have Thanks, with reflecting by in really us. over briefly XXXX, half always. net been thanks like new finished I'd funded XXXX. of start net of to We was to investing. And in in a from million putting to $X.X position the development added everyone on up accelerate foundations Irv over billion one of of story and which product a our revenues, to for them first joining. future in has We're half strong ourselves XXXX $XXX momentous for the as million year proud XXXX, up firming and growth. with The

employees. We're The while the of Officer and QX our customers. personal especially education team. senior invested in more hyper we've to for Steve weekends, heavily resources development customer position where I'm to take Chief up our our we've call. growth nights year work law to XXxX moment successfully management high a We've our service, lots of on our fruits Brokerage uptime. new areas team, adding including acquisition to senior level. of service, We engine. our This want And the and this sacrifice. of Robinhood foundations, that a third starting has year. our thank done our again, through acceleration work. the leading talent Technologies, our we're phone usual to and started live to innovating going During to toward important which now us in product to month of take Quirk as and the In involved in will into service product, completed and including platform firming and engineering, next a in made Say accelerating We like XXXX, huge be in see quarter, through We're who joined and I reliability new continuing customer strides in add we the us member once going are compliance. and support. earnings than help welcome this continued product doubled excited much as display

from introduced customers trade help which meaningful promising, recently our to their Here QX. availability. in early the a with quarter. risk We've We for introduced into other Robinhood. complete small later this customer are investment gradually things which of based ETF ago to objectives. to of expanding We also results delivered expect transfer profile and a new assets recommendations, have we've been weeks and few enables a this customers ACATS-In, on diversified launched customers set rollout customers first portfolio the With some looking its get we started

options we've as made addition, watchlist, to well alerts, way of roll simple In number as a options our introducing a options product, contracts. options to enhancements

lending progress made have We program. on securities our fully-paid

hours While program window we out And quarter. two to ability during we new and asking handle it our and able feature quarter. delivering the customer this to also competition everyone also public the of this with beta of to launch our at crypto. our close only discuss improving equity for it wallets surges we We're later volume. to launched plan later the trades, be larger of We continuing customers earlier regulators, to venues to executing crypto a but our rolling been release the feature in not for month product We're we'll this adding even to this hyper-extended continue added for, half orders, We that invest trading anticipate year. call have an hours. first believe available

we for introduced crypto capacity orders. friends. volume, to liquidity seamless to Just gifting, in for competition price to venue crypto time which crypto crypto And price customers believe for added alert, send the rolled way increasing increasing out and often-requested is another our and most family for we intelligent holidays an their We've similar for the crypto equities we feature.

with change, our will on in touch improved share the we a along moment, revenue this Jason venues. As we've from received

are allow watching closely. they regulators securities about listing been more We believe We've space We're how analyzed are intend with this. regulators place. unregistered seamlessly coins to us robot they that us engaging want adding in to that coins continue the and platform, to have to we've we are with cryptocurrency coins, we coins that comfortable They in more expressing on forward. list invested That hear the we customers proactively the from on going and more coins. concerns platforms, the add will have currently add protocols our us technology said coin

Now, XXXX I'd more development where to product talk to like about foundation we're invest already talked allowed I've bit built the going. most how us QX. in about in little through a we has

in delivered proud it's of and we we planned what nothing we're for beyond. While what have to compared XXXX QX,

get best into need. work with our Our is on and continuing to place started two, helping first to serve investors investors; focused power One, and being three, investors simplicity the grow the advanced investing; things. long-term three time they

services a plan Over years, will go a that that long next of the making we world We will several create enable the become financial across people toward believe the our investors. products way an and reality. to ecosystem products roadmap to on

Here are XXXX. can a few expect things in you

routine, First, wealth invest more the to and last work on and mentioned begin already functionality the long-term to working to roadmap develop them hard for the future, investing. to quarter, to build make roll closer are it the bring We're give we teams out we'll And in. people that they offerings customers ways investing tax-advantaged more companies this out accounts rolling at retirement are midyear. as

who be we come new to have Second, started. for experience but introducing to believe delightful this spending coming help while to months serve user experience build portfolios, they their can innovative experience expect aren't customers needs to all can them the day-to-day and we aside the new spending. money Robinhood. we ready daily aspire quite set saving. In get will a and investors, With their from We be spending serving with

Next payments.

begun and gifting. to to make We really progress send it You've upon this to to with our here see peer-to-peer easy It's for first already product. value build others. some initial want crypto customers

want the withdraw also to ACH XXXX customers We withdrawals for faster but instant primary to totaled Today deposits from and additional be money, few In We deposit in next move to months, the easier rails deposit withdrawals, way it's card it their customers and there. billion. $XXX slow. in for money. move want And funds. and give to look we'll we'll customer ways our is introducing debit make customers

platform the And have. big have customers us. This us aggressive made to across will goals internationally. adding position crypto the year our put to We is about over million Finally, up international. we've we past for our customers, in phase of expand. believe relationship customers great crypto growth globe a a opening not but also the new start already serving over XX to in customers investments the next only be set In deepening opportunity we've with XXXX,

market factors. linked our in of periods growth, expect continue launches, slower geographic of course, and, We outsized and both much growth with that come expansion it to to product waves of will

for We our an Jason and that results. it our will make everyone to remain become to me financial focused innovative over let investor. with on that, And delivering to discuss turn customers products it easier

Vlad. to accounts was Thanks, Net XXXX. increased year-over-year. to XX.X million, to our a $XX.X increased revenues. funded XX% in active December year up December XXXX up Monthly key strong users million, XX% metrics from for XXXX

Assets up was And $X.X adjusted billion, XX%. Total $XX billion, under revenues EBITDA million. up custody XX%. increased to $XX net to grew

over capital with the cash ended never in as stronger been billion equivalents. cash a We've we $X Additionally, company. unrestricted of year and position a

we net added XXX,XXX funded accounts the to QX, during Turning quarter.

totaled totaled XXX,XXX; New accounts XXX,XXX; accounts churned funded accounts totaled and resurrected XXX,XXX.

basis, a year churn saw last we its to QX, XX% compared a percentage hit churn, lowest mark on and the a and half. For in reduction

$X.X for Lastly, year-over-year quarter, XX% sequentially the on up basis. from we XX% customers in deposits a had down billion net but

were and sequentially. Now line year-over-year Total let's $XXX up in turn QX, net revenue. revenues million to XX% in

million, year-over-year million, down $XXX was to XX% and sequentially. QX revenue crypto million down saw Transaction-based quarter, for million, trading sequentially. were XXX% XX% results roughly up X% exceeded as revenue stronger-than-anticipated Options revenue communicated and X% year-over-year expectations down was XX% X% $XXX the and was up up year-over-year Equities year-over-year activity. revenues Our QX. $XX our flat sequentially. previously And for up $XX we but

added As capacity updated and further to improve our makers Vlad December, agreements for venue customers. mentioned, market in crypto and another with pricing late our competition increase we

more time to time, Our rebate, these change which to subject with is changes. doubled than from

this the reminder, venues. the time a business since that As crypto between updated we've first our is split and us launching our economic

are Looking a at activities, few call-outs. there trading

XX%. up per customers were was trades year-over-year, down XX% trading, notional DARTs lower down and volumes trader by XX% equities which lower placing For offset

and XXX% options up year-over-year, for DARTs, XX%. placing DARTs down were were trading, up X% And increased which trader by notional offset customers up trades was XXX%, per trades customers contracts per and crypto, Crypto XX%, trader placing volumes X%. For year-over-year. lower were options were up

which $XX.X the for million short-dated towards the up more X% billion, as positions. was XX% to assets billion, year-over-year securities up Moving custody, components $XX.X billion, And under include Options securities been crypto year-over-year. $XX purchasing customers in And equities up XX% loan was to counterparties. down to were activity their XX% for they down was was and $X.X XXX%. shifted totaled net quarter, $XX million and of down lending, revenues, Primary sequentially. increasing sequentially. line year-over-year XX% amount We’ve increased

offset declines rate these market have However, gains. more than

paid anticipate size we of opportunity of quarter, we fully Margin opt-in a this on totaled We in the up the As be believe securities, lending, rates interest by the million to increase fully year-over-year. at monetization securities $XX securities should toward customers. XX% significant scale program. times look of lending margin depending adding to Xx Xx paid

funded year net at our book accounts in interest end a million balance. the X% And At increase to a out expense revenues a the XX% margin about quarter billion, the was the versus QX. margin maintained closed of offset $X year. of prior Our interest $X.X

fed revenue additional increase, basis to on rate of while of annualized generate for customers. during XX year approximately we’ll continuing million we pass interest to end XXXX, based value expect every that increases As on rate at balances points anticipate net we $XX XXXX,

increase Moving from custody. $XX our growth under and with delivery subscriptions versus growth increase QX The They in QX. were assets fees year-over-year in prior year to was million primarily in and resulting and line gold XX% other an by revenues. driven proxy the increased

earn meaningful opportunity As toward an Vlad our this This of us for to represents customers. service customers higher money extent for select working fees a faster to the mentioned, service. enabling movement level we’re

context For $XX XXXX, billion. in totaled customer withdrawals

year-over-year and operating for XXX% expenses. sequentially. up XX% We the Now quarter nearly finished with up X,XXX employees

do got During we But progress XX% our sequential proud I’m are the and progress, We’ve fraud down of evolving. here work reducing QX. made is the this to losses making. teams constantly versus more quarter

$XX our million. on QX improve QX with One operating teams our of XX% versus savings diligently is pleased to Lastly, are hosting, in efficiency. working area particularly for a a and efficiency the delivered sequential web where teams leverage and of improvement I’m focused

Now compared share to in to of was quarter. in million quarter. compensation. for This million, prior turn $XX in net income million prior $XX $XX the let’s year positive which measures $XXX base with profitability. was QX of compares $XXX includes EBITDA year loss Net negative the Adjusted million million

adjusted As primarily of a EBITDA impact compensation. excludes share-based reminder, the

we’ve accounts our a their on I deposit basis, in our saw below of In of New been Before to QX to we activity trades into making mention customers to have like they’ve in net monitoring Since market customers the these in been trading get this of Year, of our carefully first amounts. what but and weeks smaller the we’re year, few fewer seeing that the the XXXX. funds outlook, start behavior environment. continuing been I’d

soon levels higher start or last few we’ve too the of net in call, say up and whether of these leading seen versus the days be the engagement, deposits some a our trend It’s few However, days to will sustained what year. seen trading to not. we’ve

total end, a for this so $XXX implies which less we’ve anticipating decline we’re revenue seen so assumes in improvement year-over-year versus incremental revenues what the QX, million, than And be XX%. of top that will volumes trading At far. some net

relating we reminder year, trading heightened outsized in particularly due stocks. to a last had certain revenue QX mean activity, As to

full XXXX for year expenses. Now operating

and excluding between operating XX% We expenses, XX% expect share-based increase to compensation total year-over-year.

Additionally, expect share-based between to XX% decline XX% year-over-year. we compensation and

expect past as into meaningfully larger hiring During grow we workforce a years. or XXXX, we slow built pace over we’ve the two the

expect we to partially costs be for exited realizing run we our we efficiencies of rate costs, areas a higher compensation several offset across as business. these While begin employee with XXXX

our hosting on from technology. for accounts, differ marketing areas excluding expenses, our and may to and operating rate of to in let’s other and We investments several in in achieve such affect improvements which customer results scale including focus web productivity materially expect productivity several growth we’re web improvements Irv, fraud to Actual to in increasing cloud, service, our variable due realize compensation which as efficiently the to Q&A. service outlook customer making costs, from expenses as share-based benefit and hosting factors, losses total including factors. successful move we ability degree among funded With ability The that are net in fraud, to new preventing manage costs. our we

group community. from of we’ll that that start this questions answering pass by top addressed the Say number we’ll over questions a ranked common After with top We’ll to already together quarter’s I’ll that, into from share with by our session, the questions questions were kick questions Leading it Q&A Say. analyst votes. live theme. And that any and we’ll turn from off

First steps expect W, when are make to question taken we comes Keith being can and What Robinhood happen? P, from this asked who be profitable? to Ronak

question. the for Thanks

XXXX, obviously EBITDA on adjusted we’ve to be few look product a but primary the When positive a have well EBITDA. going Our market how by we depend of internally had costs, we’re for managing profitability It’s are at how to EBITDA. year new measure is overall the We much conditions in against things, better we XXXX. we going a including sight possible effective impacted for for and line do. our execute It’s adjusted we’ll to roadmap. actually, committed in definitely which that also a that positive forward, full adjusted XXXX it’s small got

Okay.

being P steps share dropped few questions a activity believe since company? Hamid increase should has continue the value? a share What B., have investors taken is to in Paraphrasing are we recent The Next from and significantly shareholder the on price Olan question to price Saajan our IPO. bit. N. Why Robinhood

Yes.

the or wrote months. with as a that going past never way sugarcoat few disappointed it. performance not is letter the right in about it We’ve SX, for my sacrificing to stock to be make thinking I The in we’re price over quarter. Let’s company the been the what’s we’re long-term

We’re focused on the long term.

exciting an have roadmap. We

We have grown great a we’ve team. a big opportunity and

million XX over have also We customers.

our new from benefit we products new So for them. roll we’ll functionality scale and out as

here been through mentioned, accelerating product XXXX. grow of and towards that expect and In Jason And addition, allocate more on seen resources more most in we’ve costs QX of development QX, foundation the new much you’ve to much starting as of on slowly built XXXX our our to we we able throughout out. top from

So a for that should products, customers, over how more of been our serve continue. lot a lot we more see got customers. can XXXX, innovate improvements to you optimistic coming the to I’ve about never We’ve and more and Robinhood and future

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been the we’ve platform, hearing from we’ve more We been and they actually proactively customers know want regulators. So loudly. cryptocurrencies with engaging on

that large be concern main of with the coins of is adding number are that securities. lots could adding a So adding platforms them unregistered

closely. the watching space they’re So

We’re registration the very being in intend avoid we forward coins we triggering deliberate. have more We that add We prudently. requirements that for platform, want place. cryptocurrencies. we about the That coins and protocols to on robust have to going confident want SEC feel we it do said, to

Great.

to a Saajan Robinhood Next, can who another from question we P, of lay on Robinhood in the have out website. come roadmap features XXXX asked,

seeing Saajan. community. name the appreciate with We you, We’ve a the your little the bit. engagement Thank company been and

expansion. I’ve little saving, including areas, our and crypto a talked So course, spending a of and international about few retirement, bit payments focus of key and

months, seen crypto we you’ve have been public. as wallets past few may building So our over have the in

through beta. We collected rollout better, alpha. to the an from We’ve make customers and community and continued intent our wallets. announced had we great our feedback So product that’s to

the with out be and future, we normally we would get some our an public, we the really building feedback great and with them. ambitious in while that see way to make early engage from than We of resonate it’s that really full things the direct won’t community So do to and announce on even in we our working customers be great opportunity we’re a cycle. won’t in the way really, earlier to everything our products sure public, roadmap think in a putting

So seen we further little what happy and you into bit of expect with along that should we’re as more we’ve a XXXX. get

I. planning AM after PM. X:XX to From from extend Is to X Santosh hours Thanks. Robinhood trading

to we’re have Thanks Customers to asking platform. Santosh. later what for actually little it. are close out the hyper We out trading earlier been I mentioned equities bit And Yes. plan this extended rolling on hear this we hours a for we that you. quarter. roll calling it

thank for, for you So there. the feedback

Our next relationship the occurred question about of back to platform? anything traders the meme there comes upset that do traders Ben from stocks with year can repair bring Robinhood situation to the Is to handling the these retail N. the last

you, team a Thank time I've is spent Ben. thinking been Yes. about Robinhood and has This lot something a thinking the of that about lot.

first them the were the They access So say on January were hard of on trade. investments were people and meme-stock our of stand letting happened to customers. events let hard, customers. what it And Robinhood. that, realized that to giving they want to for me frenzy year they We trade last hard a again. sure and of lot happen markets that, was then make doesn't We disappointing done what we've to

like we've and added we've a XX/X volume. of So to upgraded lot raised things infrastructure We've handle our capital, support. surges

communicate similar avoid make is the to surprising sure take that and things restrictions just to these the customers. steps necessary way we best So all

And as to are had platform noticed in wasn't Now, customers to in. customers and in that interested re-engaging. actually as year it that things platform. the greater we've we last And of come number been that investing the seen customers forward been back a easy something of for that have one that's have that over the left coming should the looking we've it that to back been was, disappointed,

see that in. with You ACATS

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results to we'll looking an in. are and progress promising the that area So that's continue make

F Donte to coming and Okay. is when asking, Robinhood? staking are wallets

this one I Yeah, feel again. can

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Great.

question next are from who doing Maybe Jason? you and what the drop the cause So coming what D Peter the asks, of is it? was price rectify to

the also And speed and you additional expect providing also and today into we're our strategy, clarity that you should the in impact about it working it's questions thanks along Yeah, the a to number of materials away of we good and think when insight and as market. growth call is we've well. affected this execution like the expected with timing Robinhood it's our and of there's in seen We've and hard a inflation. of factors I doing Clearly give at but just a it's roadmap. general affected very been be from that our certainly But what also we're Peter. trying shares need industry, and to from things on signaling, question, our on really stocks, rates fed some us the the it absolutely rotation some increasing the around of and sharing for is us. Robinhood roadmap progress It's

here. very We're to mentioned, long it. the Vlad definitely focused optimistic going stay on but go on we're from where can about working term, as we're So we

Their any for are plans on Robinhood asking have a and G both extend that. marketplace? offerings include NFTs. non-fungible does to token C. crypto about its were, to D Thanks questions Donald

heavily as well. planned know watching on carefully our more progress continuing them And to are of we've in you out think expand grown crypto. that see crypto them. expect the products improve ambitious internationally, don't you and been for investing we've this mentioned other interest rolling this have Yeah, a we've making it's the lot including of customer really think in and that I some so, to and I team of to XXXX, we're wallets, We very there's space too using things got any get investing early area should space obviously crypto, to in specific innings. in we want more still but I the new and on excited to keep and crypto

going I'm K, question Next When Robinhood be available right. is Gennadii from be in will that Europe? to pronouncing hope

we the to platform our we've crypto set internationally call, start aggressive earlier year. So, this targets on mentioned as opening

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tax The advanced Robinhood this gains this preview asking, realized is allowing be question the will sometimes centre Alexander into have will the as comes specify features app, too bare. for, that such or app mailing a to people to one think losses? who's a I and add more address from time we X, last

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open have line. Thanks questions. I'm right time to all now. that, that's for the to the everyone ask questions we the those please Say for think I going operator With up

Instructions] from [Operator comes Barclays. question Ross Sandler Our of first

open. is line Your

Hey, Vlad, hey Jason.

the a adds. So on gross question

now accounts funded quarter around your in So to We're the right could potentially you level XXX,XXX. markets new And those the adds? remind And new pre-pandemic. you the Vlad, products which about? mentioned with were unlock XXX,XXX then us at are U.K., initiatives outside per crypto? Is a XXXX, gross think just licensed around this on Can all full running which you of operate Thank business you. versus fully brokerage the question of second just stack housekeeping. to cadence dealing international, today faster

Vlad start, probably the Ross, will jump and Thanks, think I then for I'll in. questions.

in and of demographic terms In XX- a XX-year-olds, the U.S. to that to little research. there's with say account. suggests have significant and we increasing trend a to some of brokerage that half a and first of participation, future customers and place that investing have currently, we the over it research, of internal our suggests that's the And the million there's a is are starting or be an great have account would are interested long-term There's think expectation retail participating for done the adds, currently more market. that a I able in stock of ahead don't more participate. to XX what think about opportunity It leverage us, join platform. We've in

long-term. to road to and an about. products I'll in bigger with turn opportunity, have it mentioned, opportunity, believe, over map even Vlad, with other of for international kind the is we're new also Vlad I generate you interest most also as excited we areas We the the customers think,

absolutely. Yes,

over always quite spending not in funded access type use exciting saving that's could just the and help at then over even time. U.S. their I certainly believe needs, become that think we of to our with the products getting accounts and greater the the areas better, stronger core that With refer making customers we are then talked flows of a people international day-to-day there's more user work And investor, payments, we addressable that to is experience their new could the manage accounts, net investors a an market. little you're a and making long help core spending we ready looking and run numbers. big new bit to in and think about, if making opportunity we them also but experience work on Robinhood And broader invest, to than even can Robinhood in consequently investing our better, our friends the

And of include over year functionality accounts. giving funded new accounts other those more ARPU and net as the the time. some things we've that's monetize also our to opportunities there's of like And focus areas by through mentioned, So increase well. to and as retirement them

question last licenses. His was brokerage

yes. licenses Brokerage overseas,

So FCA in to business we by the brokerage U.K., international a a now license we and jurisdiction operate that have brokerage the only for. license that's right the have

Thank you.

Ken comes question JPMorgan. next Worthington of go Please Our ahead. from

to peak run Hi, afternoon. today? a what to operational clearing of of And need and I’ve you trading two, taking cash and for cash my got questions. above business Jason. press truly for the at including I One, regulatory to as billion might hold think equivalents. the you cash Thank periods? it want How release house do much you $X.X you post excess exists how during is that needs, good much highlighted

around lines credit we typical day, is we Ken. Thanks, the a not obviously, that of opened but year our question. Since business. majority that of Great also to well. the we as up needed Yes. On last support cash, surges saw, raised increasing vast

corporate that of cash trading, it's we have, but to also just And not lines so credit. support the the

the of capitalization increased and at much – of level the to on clearing broker, the actually capital deposits affects the we have calculation clearinghouse. put you the for put how Additionally, substantially

over XXx the our brokers. In fact, now, above we're required for clearing capital right

very So we're solid. looking

corporate majority is cash a that of the can that And a not do the need activity activity from process around over perspective, alleviate As daily buying needed we basis. cash. I our vast crypto there's further on things and the said, weekends particularly selling will for for funding

to a environment. So the we sure more can feel we're handle spot. We've customer we're got that make that great in do, trades sitting we position and we matter no good can in really a

sort interest net say, the of that anticipated balances? one all the revenue then could Okay. versus, other? customer per stock the is across are $XX part how just that of the of margin it comes cash Great. hoping comments come that $XX from impact revenue should allocate borrowing $XX What that loan the different equal believe, higher higher bps. and Or million, rate-generating buckets? million I with How is I incremental of on the And million rates or XX we out Does you three? of of or sort your was on versus across rates majority interest flesh float from you allocating

Ken. few The around well. that but it's margin billion interest customer that $X billions. balances on receive lending which earnings will from obviously, cash, question, many That we are having billion a a of Yes. billion Thanks is as the some There's components the also $X those – balances interest affected collateral balances also over – just rising anticipated from rate credit talked rising be program, Free on corporate there. biggest the certainly rate about customers fluctuate, environment. we over by for be will securities

So those components. biggest are the

Okay. very Thank much. you

Yes.

You’re welcome.

Thank you.

comes Our of Devin Securities. next Ryan question JMP from

please. Your question,

guess first map. here road the product afternoon, question Hey, I everyone. on great. Good

So afterhours the stock XX% down in over the is bit a little here.

Some a in you going aren't are and about products quarter had be gotten outlook just first road gave that talked of the to you later this I've a pretty actually is initially guys you little ambitious quarter map year. coming here, a but of the lot first But disappointment. feedback the and

pretty should acceleration. be there So a good

maybe parse positive. don't and if EBITDA cute comment not not it implications year, be about could get that I maybe Jason, ARPU heard the of adjusted I the but some too ruling out this through maybe know So we here, to just can

decent imply on growth some actually would you'd that year. see potentially revenue that the so And

little first revenues may which notwithstanding, disappointing higher. people, like there's be I quarter, to of a lot So think should drive seems things that here a it

So I of if maybe through some just walk possible. those want to

then on question. What there's Devin, provided would time out, customer and be to thanks as Yes. indication I for to is products ramp-up we these some say for of going adoption to the well. when some roll expect

mid-year the And paid the we're is fully market certainly, revenue on environment But the lending into And XXXX. year half loaded program, going for particularly for We're can securities which be back the that excited also, overall we're trading. of to going roll stock meaningful be take to business. ramp. so expecting to for one that that have it's of Xx it's kind of going to to about our our the kind and to months depend impact, of internally margin size out able a thinking to several year

extent to see ability we momentum particularly customers and for monetization to more choose faster. getting talked to money we uplift some to their withdrawals, on the I say that. products, a the it's money about revenue faster. about anticipate But sense And year give move yet back XXXX. for but of their in definitely to move haven't weighted the Excited would for – just you new So the do offering customers in also

Okay, great.

here follow-up quick on a the Just some international conversations. of

Vlad's little opportunity think roll the the is in and there sense outside a features regulatory just we regime out crypto about to more is the if is comments market an bit maybe more functionality. from U.S., So U.S. cautious. My that the

And so by be sure outside make looser different U.S., jurisdictions. But the that. that may standards there you're different areas, you want to abiding some in

the curious offering you and U.S. international additional I'm more can add U.S. look then you the U.S. features those maybe visibility where policy? will we the into the if flip to outside on extent have different So

your depending be happy offering regulatory Yes, I'd environment Certainly, where regimes the you're to products. different that one. and on field are

particular with a have a U.S., brokerage. and We and the the business in large crypto core have U.S. we environment

is of compliance center everything do. we the at regulatory that So

in might our We operate have environment some regulators. be and the different. overseas And to work sure make with jurisdictions, prudently that we

U.S. will vice that be the So in to also I And products necessarily yes, opportunities be internationally won't is the add versa there think case. available

Yes.

Terrific. Okay.

you. Thank

of ahead. Our next of go Craig Bank question Please from America. comes Siegenthaler

afternoon, good that and clients see for business? I be first regulatory your the your impact an you're lending your see to Hey, want securities And everyone. And the do update economic provide fully paid to I wanted in think you to could will half. you see launch what if discussions. on I also

look regulatory like does the what initiative? So this process for

Yes.

and be have of they them terms will proactively We're the So how to all we're introduced. that with making – the the the sure sure it's and program have details meeting and of closely operational – work FINRA the make with program. to understand understanding product a we common that

aren't on customers We split customers, to yield share as with point economic portfolios. the opportunity at for their get but the to we this do an see enhanced

In impact for opportunity rate. adoption to an terms attractive it's of on the depend customers. the It to the going company, is like

I at think, Xx we there's of nice And us see So business to the customer uptake on be could good a securities opportunity, for scale. a the think lending to size it program. margin one our

and as roll just Great. are IRAs sorry what And I I'm my and it, missed to point? retirement your this at products if then out but plans follow-up, other

Yes.

key So is this a focus area of XXXX. for

on investors on. mentioned investors taking we've first-time our that the big been pulling long-term call I As become and helping earlier, is a them thread

You've seen ACATS-In closely and retirement helps with we're area another that automated recurring also with very looking investing And investments. is that. long-term at.

work I the this. a of including coupled heard in this increase XXXX. balances. in for IRAs we've done we've customer we account to that And out They that, multiple Roths. lots and account So think to opportunity recurring meaningful ACATS-In And with types, creates demand roll expect and want

we're Craig, in and midyear. retirement signaling the that rolling that out for Yes, start we'll accounts

Thank you.

Yes.

bet. You

Thank you.

from Our of Will Nance Goldman question next comes Sachs.

is line open. Your

commentary prepared my a changes some follow to the pretty guys. made of up you on mentioned mean increase around to maker Hey wanted crypto. Good big evening. market remarks in you I list taking the the on Thanks questions. rebate the in levels. I the for

increase rebate than are that of end And as we you not said the doubled, else something all guess that of increase doubled, of equal, Thank quarter. caveat it sounded into levels important towards in an quarter? levels? sustainable we – a you. in there like should missing I go same the that think And more rebate kind and happened I it just I revenues first the the see is am the if

Will, for Thanks, the Yes. question.

than this And at in more really fall effective did was line. rebate you'd the the being to all else equal, So year. revenue expect double. beginning the It of

inform days the last for the seen, the that of terms several as call, at year, what gave. guidance have that's to trading whether the beginning We use but we the – it's And in I into levels yes. mentioned leading of and slower we

now. these that that it. feel time asked sustainability you the from really Will, be about But that we Sorry, think We will do negotiated. the time at good expect to of I about level we're

of like crypto, just sounds question a the out Vlad. level want it. then unlevel helpful. the That's maybe it. me an general Don't that crypto like on bit It for now. It field anything playing basically high Appreciate a strikes them brokers And the Got fed insinuated do a your of regulator and of right crypto regulators. rolling in markets some space. are more

in exchanges, to to new platform. ones are seem lot plate have new even guys their completely adding The now continue regulated seems of a coins coins. right like to terms the their SEC crypto You Coinbase add to be some And on of restricted on kind regulatory tightly guidance. then more new

your any be able what platform is, level these roll you'll out and there actually to to is on So issues the guess resolving is line of actually XXXX? the confidence question in cryptocurrencies I that new

from been that coins. prevented Yes. I say adding wouldn't we've any

we've They're may is of as that I'd coins adding been a of engaging and that of platforms seen. been are regulators. concerned with I the these securities scrutiny a say lot adding that think what the be in lot unregistered you've proactively there's lot space a

we're being to So requirements. SEC avoid could We users. definitely triggering want deliberate. wrong harm Getting registration it

going do prudently. but we and with coins are we we more intend want protocols to add have it in the do forward, place, make we to So happy we sure

my taking Got question. for it. Thanks

Thanks Will.

you. Thank

Repetto Rich next Our comes question Piper Sandler. of from

Your line is open.

evening. Yes. Good

you hiring brokerage of want Steve So executive. congratulate I talented first Quirk. experienced He's the to on definitely and

way to I to your year another the these question can us from – lending to that the do And cut belief year, what think your at guess need get Xx, and sort Xx, try if new you prospect out see doing which insight give of to X do X X were like being would biggest in looking feel the you a some have – ramp we and have think a be, contribution And the which up this I that which it you period talk done call get about products being of will next we contribution. of did initiatives. paid the for can to so Xx? now you, lending I a to Jason revenue of you of for is fully do guess Next you you type into margin to products

five a exactly to about Yes. it'll we how be It's may to it's of assuming months, by prove take We're the hard to lending. we to way get that's take we're the be there's And be about talked the conservative few contribute that long in think kind know to but enough of one not that. to up ramped. months opportunities prove conservative. may – going could that we're to that kind program think for about fully a I thinking look, talking of paid areas the about. lot revenue areas can securities there's general timing of And those Certainly crypto I the, international interesting

attract spending not new Our also a earn to meaningful could adoption customers. just way on revenue, obviously product, be but depending

in building think a adding relatively an the can one. the we excited has particular, the One Gold soon experience. the are that and right opportunity positive a team assembled that really we're excited Robinhood Robinhood to actually and if you've synergy Gold subscription. value this talk in about past lot think I opportunity. of really plan a do our platform We've into and call, start I and is me about we're customer we in that add And other to that about subscription And that talk didn't that heard that components. thing many So probably the

the cash on about Got one talked was written I meme been last follow-up has the an year. event A volatility; about have question. how And you of stock it. Vlad unique lot it

you've the with doing you're efficiencies through all Jason then the as and well. So, capital went

excuse we it same it of guess and Or to sheet? you me, see activity capital? just this I year? first you unique – of balance maintain will you what So quarter, of the you sit need question in the do? do really level have going pretty would the last what don't do you is, from if level same Are And that

as in, including Yes, broker Rich, or the required regulatory dealer much position a more off I XXx capitalizing better we're the said amounts.

include stress we events what year as those also ago. scenarios, We would like look saw that run you and expect a

customers. And so that no matter trading we comfortable is environment the that can need support we we're our to make sure what that

progress there's parking working like I more that efficient said, balance just And operation accomplish there's things of to credit. than with Now, ways a bunch on some we've your made And that lines sheet. business cash balanced our help of some between particularly like that structure to a more do efficiently, crypto the fund debt to capital over capital see having us Over – can we structure weekends. time is and more a I'd equity.

ambitions. a and think But we're company big over we've So time. that that's also we'll something got about growth

be to sense And dry so makes I enough able powder to those we growth have pursue opportunities. that think it

And so of our as we give it's more get with it'll access more procedures how flexibility. get credit, to thinking evolving we're about us – lines better that's and it and kind of even

you. Great. Thank

you. Thank

Thanks.

from of Research. comes next Your Chubak question Steven Wolfe

Your line is open.

good Hey, afternoon.

philosophy guided meaningful a part or in as up to strategy with in question year. on of to off ambitious you the step expense a wanted coming expense management So start the an investment agenda

building you're into be making payback through some investments thinking you're environment model, should more how I Now, walk flexibility remains the we hoping was challenging? how if you about could for those period revenue the the and expense

Yes. Thanks, Steve.

of deceleration how than is across service of of ourselves it's basis. been a board, to years find the growing the versus meaningful we've a slowdown last whether cost owing and of are and in the and last which the really that guidance XX/X. new customer It is more great assuming compliance these fact couple doubled important for we've doing So product, hiring, each engineering position and a things which years with couple is our

technology at rate, opportunity business the more to the we much, be much a to that across much grow efficient assembled greater so board, across really about then productivity. feel so good us use so team for and and really can across And – looking we've we that the slower there's this deliver

progress million the on the making on I at the through higher first and to an place if there's we can to we we meaningful on challenges piece you the a customers customers there. to in and hosting. can self-serve, kind so level have those sight Greater briefly get us, just about reasons even of contact and serving rest relentlessly today the handled get to have and to are even take our will that making which item is it expense our customers root. support, of just for – the mentioned It's resolved sequentially focus the that line where web efficient solve directly identifying Give And them be down customers the by issues that and paper really QX more so ability that a much through why that team us in line questions platform big and or on year. cuts have customer have is customers, path $XX of better quick that that the And opportunity a just for opportunity we're of resolution. a we more

that's really that kinds in to of we're of leverage kind going made it's business. efforts So the those drive

kind We on a to investments investments engineering able thinking I about the investments, most the and part staffing we're time In our lot focus so teams business. for good incremental said the on payback contributing of really, really the incremental made how to and feel terms kind of of new as of we things. the about progress in we're team just

Thanks for that caller, Jason.

follow-up, sell clients the quick are and where more but Just operating general your invested. crypto growth retail equities recent given backdrop just a the certainly on in off and heavily

of declining seeing margin hoping on any of perspective terms provide year. in I experienced could you you're the and utilization some was spoke start You losses levels on you've margin activity accounts? what to whether

Yes.

margin stock when level customers. be maintenance of margin some from decline there'll definitely prices So calls and

losses we the at all. not that kinds our that program we calls collateral experiencing any those the we're and meaningful of Given – margin that in have on timeliness of

the for Sha Irvin closing back to call turn time, to this like remarks, I'd over sir. At

you quarter. appreciate the will be next again we time to And you. We talking Thank Great. everyone.

Thank you. Appreciate the questions.

Thanks everyone.

today's concludes call. you This for Thank conference participating.

now may You disconnect.