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Dec 31, 2023
Robinhood Q4 2023 Earnings Report
Robinhood's Q4 2023 results were announced, featuring a 24% increase in total net revenues and positive GAAP net income.
Key Takeaways
Robinhood reported a strong Q4 2023 with a 24% increase in total net revenues to $471 million and a return to profitability with a GAAP net income of $30 million. The company saw growth in net interest revenue and transaction-based revenue, driven by cryptocurrencies and equities, and an increase in funded customers and assets under custody.
Total net revenues increased by 24% year-over-year to $471 million.
GAAP net income was $30 million, or $0.03 per share, a significant improvement from the previous year's net loss.
Net deposits amounted to $4.6 billion, reflecting a 21% annualized growth rate.
Funded customers increased to 23.4 million, a rise of 420 thousand year-over-year.
Revenue by Segment
Forward Guidance
For the full year 2024, Robinhood expects both GAAP total operating expenses and Non-GAAP combined Adjusted Operating Expenses and SBC to be in the range of $1.85 billion to $1.95 billion.
Positive Outlook
- Growth investments in new products
- Growth investments in new features
- Growth investments in international expansion
- Getting more efficient in existing businesses
Challenges Ahead
- Rate of growth in Funded Customers affects variable marketing costs
- Effectiveness to cross-sell products affects variable marketing costs
- Degree to which we are successful in managing credit losses
- Degree to which we are successful preventing fraud
- Ability to manage web-hosting expenses efficiently
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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