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Jun 30, 2023

Robinhood Q2 2023 Earnings Report

Robinhood achieved GAAP profitability for the first time as a public company, driven by revenue growth and expense management.

Key Takeaways

Robinhood reported a profitable Q2 2023, with a net income of $25 million, or $0.03 EPS. Total net revenues increased 10% sequentially to $486 million, driven by higher net interest revenues and seasonally higher proxy revenue, partially offset by lower transaction-based revenues. The company also saw growth in assets under custody and net deposits.

Total net revenues increased 10% sequentially to $486 million.

Net income was $25 million, or earnings per share (EPS) of $0.03.

Assets Under Custody (AUC) increased 13% sequentially to $89 billion.

Net Deposits were $4.1 billion, translating to an annualized growth rate of 21%.

Total Revenue
$486M
Previous year: $318M
+52.8%
EPS
$0.03
Previous year: -$0.34
-108.8%
MAU
10.8M
Previous year: 14M
-22.9%
ARPU
$84
Previous year: $56
+50.0%
Gross Profit
$448M
Previous year: $277M
+61.7%
Cash and Equivalents
$5.83B
Previous year: $5.96B
-2.2%
Total Assets
$28.7B
Previous year: $24.5B
+16.8%

Robinhood

Robinhood

Robinhood Revenue by Segment

Forward Guidance

Robinhood provided an improved expense outlook for 2023 based on Q2 2023 results.

Positive Outlook

  • GAAP total operating expenses for full-year 2023 are expected to be in the range of $2.330 billion to $2.410 billion.
  • SBC for full-year 2023, including the 2021 Founders Award Cancellation ($485 million in Q1 2023), is expected to be in the range of $900 million to $940 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income