Robinhood Markets, Inc. Q4 FY2024 earnings call

• Product velocity in 2024 was strong, with scaling of the Robinhood Gold card, launch of Robinhood Legend (desktop platform for active traders) which had $50 million annualized revenue run rate in a few months, and the launch of a new derivatives business. - Record financial results in Q4 and full-year 2024, including revenues, adjusted EBITDA, and earnings per share. - Upcoming product events in 2025: Gold event in March with new gold products including advisory, crypto event in June in France, and Hood Summit active trader event later in the year. - Long-term strategy focuses on being number one in active traders, wallet share for the next generation, and building a global financial ecosystem, with plans to expand crypto token offerings, invest in the Robinhood wallet, and integrate Bitstamp for institutional crypto access.

In Q4 2024, Robinhood achieved over $1 billion in revenue, marking the first time as a public company and capping a record-breaking year with over $3 billion in full-year revenue (up 58% from 2023). Market share for equities and options was up 30% year-over-year. Record net deposits of over $50 billion were seen, representing nearly 50% growth. Gold subscribers had a banner year with 2.6 million subscribers, an 80% growth year-over-year, and an over 10% attach rate overall. For new customers funded in Q4, over 30% adopted gold, indicating a higher attach rate for new users.

• Revenue expected to grow double-digit in 2025 driven by product innovation, market share gains, and new market expansion. - Adjusted OpEx and SBC outlook is a range of $2.0 billion to $2.1 billion. - Diluted share count expected to be roughly flat in 2025. - January 2025 saw strong net deposits (second highest month ever) and double to triple-digit growth in equities, options, and crypto trading volumes, with January option volumes at an all-time high.

• Regulatory developments that could impact crypto offerings and expansion, as more regulatory clarity is needed for tokenizing real-world assets. - Competition in the financial services space, as other companies aim to be the financial home for customers' needs. - Balancing the rollout of new products like the gold card and other financial services with prudent risk management to ensure sustainable growth.

Q: When will the gold credit card be available to a broader audience?

A: Vlad Tenev said very soon, with over 100,000 card holders currently and plans to roughly double that number in the next few months, balancing rollout speed with prudent risk management.

Q: Will Robinhood offer the ability to do deeper analysis on individual stocks within the app?

A: Vlad Tenev stated that they are focusing on furthering charting and technical analysis experience, with fundamental analysis also on the list, and excited to share more at HOOD Summit.

Q: Will Robinhood offer loans such as micro loans, auto loans, etc.?

A: Vlad Tenev said the company aims to fill all customers' financial needs, with focus on margin product and credit card lending currently, and plans to address wider borrowing needs in the future.

Q: Can you specify what you mean by regulatory clarity for crypto token rollout?

A: Vlad Tenev said more regulatory clarity is needed across multiple domains, especially for tokenizing real-world productive assets under the securities regime, and they have the capability to add tokens quickly but need clear regulations.

Q: How is the growth rate of Legend, Index Options, and futures?

A: Jason Warnick said Legend has $50 million annual revenue run rate, Index Options $15 million, with strong week-over-week growth rates and positive customer feedback.

Q: Thoughts on deposit incentive offerings in 2025?

A: Vlad Tenev mentioned ongoing incentives like retirement transfer rollovers and APY boost incentives on Gold program, with focus on personalization and continued growth in net deposits.