Robinhood Markets (HOOD) 7 Aug 242024 Q2 Earnings call transcript

Thank you for standing by, and welcome to Robinhood's Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

I would now like to hand the call over to Chris Koegel, VP of Corporate FP&A and Investor Relations. Please go ahead.

Thank you, Latif, and thank you to everyone for joining Robinhood's Q2 earnings call. CEO Vlad are Jason and today Warnick. us and Tenev; Co-Founder, CFO, With

I remind factors filings, we differ want financial presentation call getting legally developments no just Before started, all that the updates provide in release issued and press can found to our earnings cause expectations, in earnings investors.robehood.com. we forward-looking results unless also SEC to differences, Actual be which duty monitor discussion are regulatory to described the comparable our Potential GAAP will statements. presentation. at of today, you we could consider results be continue measures. can from could risk will to materially required, the most the and have found that we contain today's Today's that include Reconciliations non-GAAP including

to me over With that, it Vlad. let turn

everyone. Thanks, Chris. Hi,

increasing winning And customers; We're strong number across financial Let we trader market; me focused as X making start on: two, share quarter another and with delivered records. is QX, outcomes the the these. several expanding of internationally. active Robinhood all number three, things wallet with one, in progress X of number and our

now record of million, over annual and customers our Gold exceeded target leading in and XX% More were XX% crypto annualized a long-term already market the continue specifically, quarter, to a Gold plus, members. funded to of over rate. the option translating of new share year-over-year our $XX equity which halfway $X growth QX, year-over-year $XX record volumes. year. to are retail in a increase, we're growth we've XX% deposits billion trading and Net billion subscribers X% reached With is in growth only through

much $XXX continued And so expense XX% record $X.XX. do, revenue slowing down. combined as these with so growth as There's not well record to still of to we're a discipline, million EPS year-over-year results, drove

among margin. great we've for brokerage equities on until been where, even a market progress so opportunity consistently is one incumbents and this area our active growing share candidly, far is But recently, And our trading. than as generate margin been trader more revenue On front, us the huge options. not has

not balances our customers adoption we rates competitive. from were very getting because much larger margin were not with particular, In

billion. industry-leading last accounts the So to we transfers to introduced And active to a over in rates making by X traders of for margin the of the led coupled improvements weeks quarter May. $X in flow X-year grow the this, XX% we're continued with balances high

with that balances came customers Now $XXX,XXX. XX% of over margin from growth

pleased balance making And our really in we're with we're see the So progress on growth strong to customers. continuing margin with large QX. margin we're active

traders. close Finally, we're building plenty Hood more Summit coming, inaugural for There's our to including in being done October. nowhere active

our feedback of lot a in March. from positive have We event gold

to special we be about. bigger our host be So the Gold that for wait than you And products a launching event just much We'll awesome we new active traders. some tell decided this to can't will event.

additional thoughts. Now to to I'll results, some financial then Jason me our let and over offer it review turn

good everyone with Vlad. It's Thanks, to speak today.

driving drove We are income good make adjusted GAAP EBITDA, new As highs discussed continue revenues, we another focused net last in quarter, QX, profitable to on EPS we in And progress. of QX. we in growth. year and

roughly to revenues incumbent year we we ago. share and were see points income over comparable XX was up net margins levels million brokerage from to a Xx progress expanded XX%, Compared what $XXX doubled margins time XX%-plus $XXX towards per XX% make EBITDA $XXX or firms, total year as grew adjusted net the EBITDA $X.XX from ago, incremental to a million, to to million, XX% adjusted by

of strong past a number see how the at came a year, great And to look it's together. taking quarters

over growth were results billion XXXX. delivering revenues both profitable last was $X.X we continue with new as pleased adjusted the these to $XXX XX EBITDA in highs. aim and months, million, We're over For

let's to Now business move QX results.

driver great Assets asset that a was which under XX% custody deposits growth was over record annualized QX assets record XX% doubling finished continue QX net billion, of up at rate. see $XX XX% sweep to key QX, last year-over-year. $XXX $XX billion, a of It's translates QX, in quarter. billion also record And up more to were growth from to year-over-year. A $X diversify. how in a cash billion AUC Retirement nearly than balances

driving continues deliver value also Robinhood and to shareholders. our growth We're to which our in both Gold, customers

larger adopt our Xx products ARPU over growing our have Gold as are higher at deposits on average. reminder, average, than subscribers been rates, twice customers that is net customer overall, a leading Gold Xx and As fast to

we $X This up subscribers from QX, ago. year-over-year. million of customers, grew Gold over In adoption an rate X.X% to X.X% year represents XX% up a of

over excited million. $XXX momentum to Gold continued subscription We recurring see annualized which are in now our program, of revenue includes

revenues to lending in Net starting to last grew balances asset and interest-earning seasonality were due Robinhood QX increased higher increased roughly and activity Now revenues as declined revenues and interest higher results by revenues industry proxy continued Gold. compared financial with Transaction-based let's to volumes. our with crypto and flat other options turn growth equities revenues driven quarter. while securities

to the the on SBC This of accruals Pluto. year, in, middle the had given the expenses. $XXX Turning our includes and range million the full related we've first Bitstamp outlook costs and year our billion. as All Combined X as of $X.XX was announced expenses through QX. recently adjusted are our start OpEx acquisitions, track increased with to half strong billion $X.XX of quarter to some year. employee well to bonus in second

our environment. on outlook based we expenses our as the continue unchanged investments we'll the managing our on keeping returns and well see we're actively So as growth macro

want capital M&A free cash we growth free that repurchases and value allocation, the earnings the share and cash to we how higher about think that time. allocating this with When flow is share Before Vlad, flow thinking per objective I do to maximize and by share over earnings complement per pass to back our increase we perspective to drive about share. some We call I capital are can organic and to deployment. about capital primary

And good in made QX, we progress.

we invest organic matches. First, like development, growth and in product in customer continued areas marketing to

and like lot We we're the momentum economics have I a driving. of

we our accelerate announced a additional us X base, exchange. serve acquisitions. map, an Second, liquidity crypto enabling a In signed crypto to acquire for and June, Bitstamp, will crypto we road user provide to believe broader enhance capabilities global it trading. agreement We our

and Pluto And advisory. to help repurchase acquired as announced to $X and share faster AI excited in billion July authorization share over capital in period. line which we started X-year to currently on we executing execute This We're depending time we Additionally, expect a opportunities. market we to conditions more move and us progress a vary allocation here. finally, other could even X- make

and start share base. ahead, are XX% a model to a flow of having drive Looking is by earnings we And time, lot higher free the believe QX. second to hedged per debt of cash the positioned momentum well business business our fixed our naturally year driven as XX% plus over and have great cost we we half deposit growth entering

over to and XX% crypto, higher again was strong more billion. were equities, month deposits. options in net trading a June net options June $X And July, over and with a than across billion equities close volume than and context, XX-month volume of record volumes high deposits for $X As nearly were

While of far, including first August looks is billion it just a week the July, August. getting lot deposits over started, so like in $X net of

turn back Vlad. to I'll the call that, With

Jason. Thanks,

hit including boost our card unlimited strategy and part of As QX. value earlier, customers, Robinhood new growing I Gold all-time for busy X% an including out X% And customers with is been a subscriptions, second which the deposit Gold we've Gold said rolling wallet in cash share back. a credit with high increasing additional Robinhood

bit flywheel would I before we've Now been how explain a it the and I detail seeing I've talked little in how works. accelerate, about more thought

here So goes. it

flywheel to And Gold growth customer and average First, at Xx leads adoption, as receive experience our ROI. that deposit and of of across to This better a products it our average leads that's ARPU multiproduct a spins, to and that Gold customer faster our economics customers. higher the including of customer. industry-leading all member the leads retirement this over double growth Xx services. net loyalty adoption greater that's members And and world-class

and different revenues for components satisfaction, The the business of time. over customer greater flywheel are higher diversification leading to self-reinforcing, higher our

is had full. to we more There's strong a should map much been our our deliver to team has So QX, know hard so and working Road customers. value do. to you even incredibly

Now let's to questions. move

Thank you, Vlad.

questions this turn top session, After passed the over ranked questions call start in already votes. the For been by and shareholder group quarters that number live questions, analysts. together answered from share that have we'll questions from few common to we'll prior answering on Say We of Technologies a Q&A the by or theme. Say questions our

our off question first from it I'll So kick Say. with

question rolling The first when out is, are the credit you cards?

to thanks question asker. the And Chandler,

love the X.X everything App X,XXX card. The with So experience, started app over rewards. card rating rolling They ago, the And the that And far XX,XXX the high. is has recognize the we the from few credit that card recently card the love we digital positive. and on experience, for very a Customers the the about a demand cardholders. very, love so out we it, we've is customers months credit we've far also crossed People itself. Store in-app announced feedback gotten the so reviews.

demand So lot roll it faster. of there's a to out

on the validated compare set of of Year past, credit right validated more rate to tend programs roughly at the other as is slowly our And the in card activity same spending track, are customer we're and to the in with if and off unit well. Just borrowing context, it rolling X. out little as a the the card around these rollout you kind programs bit start economics successful

want and wild do be Part seeing also recognize risks is there's to any demand. reviews positive but we card of in make ton we the demand, that people sure of So business. that while we it the we're the that seeing to new and the build prudent carefully going of and are a because managing

you, Vlad. can AI more Right. The you acquired? question the get just asks, that we information Thank company on next

think we I'll take really, is this research stuff we absolutely. accelerate and technology, great. and with really in what there. we're in can we've got the to Yes, AI-powered in We're of work some terms do really they the They're in and advisory. investment the AI And well. team an excited platform, help the about both really the doing team one And works us plan as good Pluto.

stay So tuned.

the plan All And in-depth on from question releasing Thank Do chart with Vlad. desktop Robinhood then version a Say. last more you, of you capabilities? right. ever analysis

Yes.

sure making the be is is matter And actually year. that an of of think it's good. demos this that been And seen we've very, product platform we've some that top one looking it the we've great. fact, I've been to are amazing demos going very As customers and love. actually this on things focused of I will a been the

So you stay tuned. share guys. it wait with can't We to

shareholder taking time shareholders All and right. to Thanks, Technologies. We to ask and forward to That Brad. Say quarter. Vlad look our our Jason questions concludes more questions appreciate next from these

the to Now I'll analysts. over back call our to Latif from turn lead Q&A

first Our of Instructions] line Dolev Dan comes Mizuho. [Operator of the question from

stuff. Really here here. this about some markets I because seeing all lot on give week XX-hour from outage amazing Great you Really to good we've questions about results know got you're of want me always. and it? a earlier in the can the as color the growth results

Yes, yes. I'll Dan. that thank one. field And you,

don't customers. couldn't XX-hour we new the they is large go to with technology this called particular is technology exactly want some extreme they handle bleeding ATS such any to, right. So in third-party a case, which product, Blue the shut and Ocean demand sometimes In the instrument edge with down, route trading, disappointing orders with Sunday. about ATS, things on And commonly this had is product, this we're And this that I to product had of customers. issues, for that not there's -- to some available say this base market, first

in as pains But the frustrating. a being to past. we've possible have plan load and at safely confident which symbols and are allow they in all handle I very, we next mean very This planning testing them Blue be making in I testing third us that's Ocean, the team place product much offer. a And to will with scaling time, over think that scaling release scaling it's we're week infrastructure, working is nonetheless, in them helping the this larger with instituted had -- our we've or as helpful share over we so. been across the that their sure of party, that

of that's this been I we're and believe they volumes the really have should have We're in they why the this also be excited and mention, platforms. of launch overnight because since $XX XX-hour Robinhood market would we is reasons the on one wouldn't product that cause access advantaged billion on hours, successful, in would and nearing attention. all customers partly that has other incredibly

So to to continue we're it. going in invest

edge with And improve quality reliability we're deliver with to As you make including of product over that innovation, and can we our all. any so the on the that you time. partners, bleeding expect to going sure we continue for work the consistently Blue Ocean to should

of Wolf from line of Steven Chubak Our comes next question the Research.

on that speak clarity hoping we on the adding strategy your the lending? one, rate revenue opportunity a staking from to side, crypto to the the specific higher was XQ? get bigger crypto in what I in especially coins, it's administration. might offering, There's picture improved And the incremental whether the expanding speculation been with take quarter, crypto you some strategy. drove wanted how or or evolve I additional could crypto start question regulatory just some could change with the a off just to

I'll his and and It's here, Jason Vlad with contribute start. as go well. ahead can thoughts

So what really what I than that more in crypto, we're and see U.S. we our customers in more to be implications of the the more market for the for that improved the is bring what can like situation, regulatory terms I that And do think allow would innovate would crypto. to us rapidly environment do would know are customers. in to EU to be frustrating in of in And current able

hit on able of things. think And offer more coins. We'd some be top so you the I to

coins products bring that we're listing because And not new selection of to and able certainly, the market. services, to and things comfortable in that wide We'd regulatory lending there's also be a of and innovate today. like environment, taking

of terms volumes market just as industry services as the could mean, So are I of in other platforms share estimate you in revenue don't and U.S. other well here yet that the for overall abroad, tokens, as in I the looking offer. at think we they opportunity, and traded

we're So I gain with think work it to and could be to our meaningful, clarity. that continuing regulators

will be believe of felt domestic Yes. innovation. And U.S. a in and really I good, the happy by constrained that, course, with and get add here of needs our the in just haven't market. regard this the would leader we execution clarity crypto, is to speed we crypto we and been the clarity to business. We've at

increases innovate crypto or one. November lot the same seen in and built we well. you've staking, selection in EU. power share believe taking asset up And be successful a if different to as of ends system of course, year-over-year plenty administration work do, U.S., We've of more of Of to the can there's In it's done our volumes business in pricing. the on regardless that offers and market we what work we a ultimately products, Solana

of do. work to there's plenty So

of was take part second around question, Steven, The rates. your

the pricing was XX And really due the That's quarter, experiments. rate so up bps. crypto That's X bps in take quarter-over-quarter. to

quarter Looking crypto plays how great customers $X.XX at from how continue excited and in But the were and see QX to rates And we the we'll take to offer to we range. July, low are go the pricing there. see out.

helpful potential could just cuts But mitigate to could help on And futures, of just revenue be could the are pricing That's update. rate pressure? what in It earnings some that great X the on if the or you color. last Fed also you that the call. in just now one if provide that I squeeze since outlook. more rate might offsets sensitivity side envisage of some speak cuts to the an additional

take one. I'll that Sure.

rates in first the offset that lot different and high between really we've got operating environments. environments, a business rate natural all, One about So thing is trading. environments, of of low-rate rate like we experience our

asset rates as tailwind And growth lower increase. tend rates overall, to for fall, a tend trading our values to So be business. and for

I couple to things of there's out. a call important think

at our rate nice But really growing assets a changes. been to interest-earning of are pace. interest-earning not we've all sensitive assets our First,

to and half relatively sweep So of in actually, the fixed, cash earn relates the changes the which balance our minimizes there over impact of spread of is rates. interest-earning we assets

we our broadening we're serve the to much customers. way us. that a for Second, business diversified that's And leading more

basis NIM good that Specific but $XX decline the to exact hedge. the would about timing, point you rate asked change question feel assuming a And is, XX affect about we to hard so the by million. the or what natural impact predict

it billion takes decline to $X uptick revenue, interest. relatively trading We in of in that and activity a offset have transaction-based small

of Our next Siegenthaler the line question of America. Craig from comes of Bank

all hope everyone. afternoon, Good doing I you're well.

question growth. my a the XX% growth second So This row that in quarter was your exceeded organic organic picture on is total big has annualized.

in Now drivers innings. efforts there's like your are like Europe the of early there some of crypto the brokerage a very lot matching U.K. initiatives and but

your rate So the on potential just wanted growth all the to pieces. given -- your moving potential half thoughts get organic we the second in

XX% sustainable? is So

we year, a out. really plus we track half record you a have the and of strong have growth long So XX% pointed rate, as first of organic

activity and what over the would that here across incredibly X think that's in into I helpful categories so We're continue the continuing can far that seeing QX. I trading strong June be seeing up is we're that an July say levels, with XX% August.

of in August. July deposits the first net and in $X billion week $X over of billion over So

mentioned, over to $XXX run we are where that I our revenue rate annualized money to us. now the the customers is their with businesses all million. deposit have with think X Vlad continue So in signs at continue us, point this showing engage And as quarter

even very think we products. I of for innovating growth. we just much to out years couple driving and new more outsized as diversified ago, well and continue so And today a we're positioned, especially were rolling customers than organic continue

other I that want one the which mentioned we lid just off emphasize remarks, earlier products. I thing of to active And is new trader the haven't really in the taken

most also investments share active impact to the mature growing that and immediate there Our business our our is relative trader the and make on wallet investments business have we internationally. most

going got excited in And new where we've for getting products. we're unveil very, we're it. I some event October, very traders our an And active to think about

seeing, you're on plenty results. think So but I also the but those includes run room been that to innovations of we the the margin, year. for they're them, good it trader of mean, there proud I and that active results of product we've have We're includes side, new majority that making

great hear. That's to

I thinking side, gaps a mutual CDs. like products, more fixed I'm versus online think funds innovation product there's brokers. the On few income And of the still some established custody

update do ] you some the on [ you But product Now provide an helps. us can fill? functionality now can have of think I ACAT that gaps that near-term you and

the existing and what more extra Yes. of need lot about estate there's We've Well, tell advantage screen a desktop trader a but futures. tools of of is active power take they the and that charting. a we're you I'll about talked and lot interface use lot on mobile, customers a better can so front, web great that we've how on interface a real talked

we've So elsewhere. a gaps jump ahead those opportunities differentiate what us way, and and to seen of are really also innovate but for in

climbing of into with curve moving passive made easy and think I transfers ton making possible. this our more assets product like like of the the as Robinhood we're ACAT just assets year, mutual and as buy-and-hold funds, we capability sort of a process progress regarding CDs

several led brokerage you're from that's now. the results transfers for positive that every incumbent running of net to line seeing, quarters including think firm major I really some bottom account

also We for actually have reasons to would And customers to accelerate that see over withdrawals reasons plenty withdrawing, think for we that remove time. and deposit. be of the we want increased goal reasons reduce over long the opportunity we systematically run to can and for customers

increased that it's And so on, and to you thing long net time to the reflect see run and over really But going this deposit take activity. out. is should we're I play focused one think some

that and going missing. process sure We're the of through going add the of And to because assets are is the else. kind all of really transferring on growth that anywhere I all than better platform. going that asset then into will we're just offer think go to of the at incentives the to make add accelerate then we capabilities are our the Robinhood We're and economics cherry top

here So the and only here. a of I'm we've already couple getting at offering made ACATs of past in beginning. we're And years, -- there's ton and so started much we incoming do just the progress to

JMP. [Operator Citizens Instructions] question of the Devin of Our next comes line from Ryan

you over just margin thinking term. dig from the Great quarter. bit around guys intermediate how a in would incremental about Question, little to love are here the potential

but So EBITDA XX% current obviously aren't that I the base already is XX. XX% mid-XX% margin, fixed. really from is of plus at And know you objective, expense away a the far

And drive in the expenses Is So but go, the just I where stack such base? anything to acceleration love I'm have just what material could a about kind road trying algorithm? from here? are, that the know ceiling like the one could on just think targets we about core of to fixed the looks like infrastructure? there an because is tech efficient what think there map then you

kind view margins. the I path on a of of the way is Yes. station our to XX%, Devin, longer-term more

us seen years. substantial drive incremental margins the last few over You've

closely. was revenue And costs a This reflection managing really driving quarter and XX%. up our it's it us of

to low businesses We a term we held those growth cases, thinking analogy to think our looked negative good I we're about did at a at XXXX. rate. single and businesses cost existing long looking in how digit what some is OpEx in and

expense which continue and to million specific this on we set help alluding we've all the X% call, And to and budget. $XXX we are up to extra about savings that many at the talking an that growth that marketing those business. guidance investments there midpoint, of been fund for aside was operating And And in reiterate. we translated use to

you're growth. see to of have And think ROI continuing I business. lot going on for top to so of high And a very targeted investments our in to us leverage make continue then that. see opportunity existing expected we

things there as terms being thing short Vlad is patient specific In term a I'd on that the that, to credit next in early we The too road out are that map, guidance. rolling talked of the point are it's And to out give one card. we the on specific stay for we're investments a well, very that will in some way about, year. approach incremental next but But be year. tuned certainly guidance

Yes. I The hear lot would we've to that, think interesting of companies. I a only -- add that is talked impact different think thing about lot the is a and which I on you sorts AI

is area I financial technology much we at our for that software. products core core. making engineering. in even its the and services, how is kind been as haven't of use look we of We're operationally, we're our of at companies think including maybe engine as business, we've that we're though business And creating one emphasized out rolling to

simpler. in point AI investing a -- applying And than different impact the of the maturation we've to already parts the easier past we're a productivity just an seen significant lot in. on making area beginning we of and tools year, seen And development process software there's these room lot run. in of think we're a that We've cycle. lot of to to and think we're gains closer just the That's I side, engineering

line comes of question Moley Piper Patrick the from Sandler. next of Our

the Gold had one offering. I So on

a last over quarters. the things few number You've of added

rather. the platform index or more add options and before of year trading trading, and to web-based end planning with futures the You're and options futures the

Just your talk us here. pricing to on about thoughts

your And the You're continue kind higher? pricing that to of that do kind base? grow of to with desire at What's balance $X a go to month you subscriber appetite now. dynamic how

go north continuing our love right million just the it's it but faster that's I'll increasing and rate Gold annually, that and to to invest and is program one. is now doing downstream adoption Xx the the ARPU. have take our say net in subscription customers this higher economics. revenue the I leads ahead great the we're in $XXX Yes, effects, I'd and deposits we we that gold, of of adoption What focus by mean

pressured religion not short to in price the we priority. But raise price. term over And we the And it's have that so now, at. we're to we look continue not is time. something It the feeling will don't wouldn't right that touch top the

from the line KBW. comes question of Voigt Kyle of next Our

on Maybe balances. margin a question

comment know cutting the and they or customers if So were you that retail if or And the happening, can disaggregate has for the I rates know the there utilizing one industry? Robinhood? way Robinhood you that's brokers that margin much on utilizing across of impact you of that firm have margin margin switching elsewhere margin more to switch activity maybe guess from can and there from simply some margin margin balance any you is customer of existing transferred is broad-based growth that versus inflows your generally subsequent simply been clients of is coming growth XX%. how where

go I'll ahead Yes. take and this.

customers those top #X trading. lot be active all And seeing grow mentioned, from for over strategic in in take categories see but on in to Vlad of for fifth both we've share distant and we're as and as lower one We but So trading active new two, about equities trading, market margins. a of or customers, options in a number made progress And continue this in for share market the both talk three our is of margin rates. existing it's we're existing mostly well to as July. we pillars advantage

a it's for opportunity us. huge So

we're in we lowered change the XX% in think and quarter, grew July. and the much is big that's opportunity, just faster May, with May the take And that in this rates we We We continuing move the of in peers our starting there. share saw to really a the to quarter, than second the the even rates. end definitely

of the Our line comes Morgan of Michael next Stanley. from Cyprys question

Just ask the update bit Europe world. around in a for efforts, the little wanted and expansion in in to particular more U.K., and international color on the

take building to think how And what about and here looking in into just U.S. seeing order sort what the what platform Just and far curious at you're in as the versus growth? built face out look accelerate so having of to the curious you in out half you're overseas, to of the second you hurdles? steps those looking some you 'XX business challenges overcome and traction are

seeing. the the Thanks we like early nutshell, we're for I'll a signs that. Yes. question. field In that

So as we what far, U.K. the U.S. brokerage in the we characteristics both offer want a is And average, on account EU for and they really we crypto, customers, balances in the than that trading pretty things overseas for the little the bit like smaller U.S. are hear but are similar. in from

U.K. customers customers requesting and ability are requesting options to the stocks. trade are So and margin EU

And part one that, focus So the platform available of making are I we many them of with in be markets sure with of feel we the that involves our really, U.K. looking EU, be possible. available the validates internationally. to that really giving And feature set relevant that and our working And think, these awesome as jurisdictions. expanding their have access products technology in worldwide regulators in as in having we unified products, into in other these out there. same to in and along the good taking can about all that. U.S. then available simultaneously, made really the expanding all the is great the jurisdictions, strategy rounding customers

the of from Todaro comes John question next of line Our Needham.

trading on you than to had hud? that piece? those They Bitstamp a is, two regulation still down offer drill bit payers. factor? here. you fees is take rate has higher acquisition in results historically within the on that we read we a then little offerings should products just go the same hamstrung of then that the higher bit crypto just U.S.? And quarter growing of here? number little are This fees into part platform on deciding first kind trading not the that, the a you that higher as I Do of also the do and Or think stance. more fit going saw could Or on wanted with anticipate Congrats

know. acquisition I should that think about there's interesting Bitstamp X you things the

One of them is international.

business that in on product the we quite and lot large also and innovation driving crypto that a the expansion the there. we're that could at accelerating our It great significantly the nicely global side. is retail with have institutional is currently second The dovetailing a business. of one jurisdictions, and international see Robinhood business we operates

we're access The have for about also we've because other consumers want we for great low institutional that great they tackle It's positioned to institutions. built cost is relationships area thing and and business, with excited institutions to technology believe crypto. we're market an well

making acquisition better products our And excited with about the and and so really and we're closely joint team the really better. working

the to you, And I rates fee want at we due philosophically, in low competitive on and market offer competitors. that's offer kind to We'd I'd of Robinhood fees technology under. want And leader, to North infrastructure rather larger the and over-index structure that wouldn't our customers. than we Star operate point. at this really investments operates and be tell their to our share scale

don't we be I continuing like point. to it's aggressive specific have any structure this changes the specific about think fee us you to But premature should talk the to there. at So see --

Citi. the of of from Allen line comes question Chris next Our

the the slower your at And up? sec how I little pick seeing more environment dig the custody here? enrolled in lending quarter, SEC competitors bit want Are maybe a during talk enrolled Seeing you a just here. would about in frame a you and you -- the if just to seeing momentum little growth enrolled. money soft there? customers And there the possible. some lending, outlook nice perspective any customers of from just was the Are work really on out to putting some because

business customers and saw Sure. and customers, about enrolled, little the billion. there, pickup that. to we inputs quarter over a mean I'll assets really I signing ahead increased are and nice more and go joined by are the XXX,XXX in that up a primary that $X program. the take the the

really desk I a strong inputs into business. So the the nice trading job. did thought really

names saw specific is returns in quarter. specials, that we'll the the call there's available some a that on other we And and activity. lending attractive earn that rebate where nice we higher input just The rates the are

momentum the see So the how of we'll really program just is I'd great inputs and a say the have of desk strong. trading year growing to rest doing job, out. plays that and is the

O'Neill of of Our Matthew next the FT comes line from question Partners.

much Thanks Good evening, everybody. so for the question.

only probably otherwise? time I as out maybe was anything call there's importance is around crypto you the diversify if in monthly less to and down pick frequently some term maybe more products activity and wanted active some follow number, are longer But of over or up. the curious used. to here just the coming and knit user fully to Just number Really, recognize that

you users us are we and thoughts. users Jason some What business, I'll feel will that is which reasons Gold, just monthly all instance, and like don't yet, active Robinhood these advertising product products deemphasized active as and it's directly besides, not mentioned, volatile is we have in yield-based like maybe for investing us then have quarter-to-quarter. diversified that the monetizing retirement monthly a an

active what's lot in going a just of variation user by on market. And crypto is the the monthly driven

across that swings quarter-over-quarter. on. we're going since in what meaningful there's monthly in you hot, metrics. immediate market. well. what can that cools that's user as to huge are When you'd see So the the large But so that's then see similar pretty spike crypto entire in And when I pretty users retail a cause monthly to And crypto engagement more active acutely much down, active crypto tends markets drop think crypto

that's not I think an Robinhood phenomenon. idiosyncratic

from next of Ken Our Worthington comes the JPMorgan. question line of

market has sell more bit off. recent the a customers. how get on to color your love impacted I'd

us out, going rates sort balances trading more gave announced you that of activity, called the sort growing competitive growing sell-off. right some margin with but you but have then recovering been market the of into color with on You market. the as

in recent did they and August, access option both can with distinguish equity long-only where perform their the customers versus options? hedge in So you the can of days? sort how speculate with health customers And given Robinhood your of those in sell-off to leverage capabilities

glad ahead go some add and context. I'll and take you Yes, can this

offer are So advanced leverage more be strategies trading that to is attractive options leading we are across customers are And and that would to trading of thing a The returns. that on and create average, industry. the an price tend I rates the book who variety first on using those are the as all, feel of customers, and margin using to we about they're that low great example, offering rates. point

about that. really And feel so we good

that I is you think don't are to on time shared our returns selling. are customers. having or that I at we've individual I'll daily tell of customers when a customers look are almost specifics reports, prices is summary the our any specific are when of contributes or What groups pretty capability And customers a kind return sell-off up, attractive customers. buying there for every

focused in being do, move I at kind product the one associate there of in people a we us sort The frontier leader is when that and innovation -- in for only that from they thing XX-hour when is tell with both the I of the story I should work areas away think of on like thought the that and we technology think space, novices. I'd to we're active the reinforce and outlined And is on, trader call, that of them market. trader how in number do being the like this trading. add, in of the and to And of side market Ken, products active there's the Robinhood think goal them have

that is reality very of big a in for and the sophisticated. that competitive this our a coming has assets in the market we're they're in are too. share, customers high-yield we we of our XXs, products for fine, be their millennial less business. Gold us our we're particularly that very are also trading for real The tremendously. can But to a And gaining have leader market for definitely core adults growing most share, products that's generation. they're And retirement case, extremely in and and actively, customers been Robinhood part for very, use wallet awesome interested and they're We it's serving think

we're also that X And something of we're to we're baby and of on. primary if assets in in to the Robinhood different the, a shift ACATs, from seeing position you're that to diversifying be down There's going assets. that's doing assets focused putting that the and tens trillions one work of And beneficiary in and of and not boomers Gen the for Y beyond. kind of going support adding how business Gen be long-term

so in but we're can excited think both. we very that, we be And leaders about

the line from Ben of comes question next Budish Our of Barclays.

And you on going sort options activity new the you is existing overall percentage seeing seeing options more comments increased customer your What up you when of the prior course a market maybe of your bit unpack base I the much Robinhood you a if in options the of customers? of talk what the is of was seeing in customers following wondering Vlad, growth to can clearly, getting -- the are degree little terms over growth coming number you there, or or from same some could stats do it for growth coming active? how the from are the activity year. customers about like-for-like customers or same you industry the extent sales, about will? around for of almost as is you to Are enabled up. unit if share, What activity side, share any you sort of Or options? versus

into I'd doing jump tell the can you has thing I job. a Jason maybe Yes. and been team great options mean, our

We see major one I market. you the advantage. have several in elsewhere major relative options mean, advantages to what

First charge of contract all, we options don't fees.

you're $X.XX So add can of if charge trader. our active contract, most competitors which a up an

you're And active if so outside a trade of kind economic purely particularly disadvantage at for you of traders. perspective, options Robinhood,

tool of a advanced including option announced and to is were couple built people and past tools simulated that they get. user in the The pretty fees other the amazing paying quarters, downloading area previously which products analytic some returns And experience. other we've subscription gives

the to Now user it easier awesome that's built do. that to do improvements And to transactions want make the experience they in Robinhood. we've with customers to for done

screen we've And a lot remaining on know and they to opportunity got do. more like of our a platform. on We desktop get customers estate real research to the do have of trading work where additional options lot

we can market further. And keep so even that growing we're share confident that

XX% about are year-over-year. that up customers number options of would just Yes. trading the say I

Yes. has job. been really doing great The team a

would Thank now like Sir? turn to remarks. Vlad the conference for you. to Tenev I closing back

retail listening. for shout analyst. the and shareholders really Okay. appreciate community. from engagement the Well, special thank everyone, also analyst a to And We the out you,

retail YouTube out where a on the we'll company and in the for calls, on but lot and things X. have couple all Maybe next not of that appreciate they're and look they're company. podcasts of analysts other days about you share the cover more on We these We as on us well.

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

disconnect. now may You