Robinhood
Markets (NASDAQ: HOOD) has released its monthly operating data for July 2024,
showcasing strong growth across multiple key metrics, especially compared to
the same month a year before. The company, known for its commission-free
trading platform, continues to expand its user base and financial footprint in
the fintech landscape.

Robinhood Posts 53% AUC
Growth in July, Beating Analyst Estimates

Robinhood
reported a total of 24.2 million funded customers at the end of July, marking
an increase of approximately 70,000 from the previous month and over one
million compared to the same period last year. This steady growth in the
customer base underscores the platform’s ongoing appeal to retail investors.

Assets
Under Custody (AUC) reached $144.5 billion, representing a 3% increase from
June 2024 and an impressive 53% year-over-year (YoY) growth. Net deposits for
July totaled $4.2 billion, translating to a 36% annualized growth rate relative
to June 2024 AUC. Over the past twelve months, net deposits amounted to $35.8
billion, reflecting a robust annual growth rate of 38% compared to July 2023
AUC.

Trading
volumes also saw significant upticks across all asset classes. Equity notional
trading volumes surged to $104.4 billion, a 21% increase from June and a 51%
rise YoY. Options contracts traded reached 160.5 million, up 22%
month-over-month and over 50% on a yearly basis. Cryptocurrency trading volumes
also showed strong momentum, hitting $5.3 billion, marking a 23% increase from
June and a 56% jump compared to the previous year.

The company
also reported growth in other key areas. Margin balances rose to $5.4 billion,
an 8% increase from June and a 59% surge YoY. Total cash sweep balances reached
$21.8 billion, up 4% from the previous month and 72% from the same period last
year. Securities lending revenue remained steady at $21 million compared to
June but showed a 24% increase YoY.

Moves and Revenues

The company
has been actively expanding its global footprint, with notable launches in the
UK and select European markets.

In a move
to bolster its technological capabilities, Robinhood has brought on Jeff Pinner
as its new Chief Technology Officer. Pinner, who brings valuable experience
from his tenure at Cruise and Lyft, is expected to play a crucial role in
accelerating product development, optimizing infrastructure, and enhancing
overall customer experiences. This appointment underscores Robinhood’s focus on
technological advancement as a key driver of its future success.

Simultaneously,
the company has strengthened its security leadership by appointing David Schwed
as the Chief Information Security Officer for its Brokerage division. Schwed,
who previously served as Chief Operating Officer and Advisor at cybersecurity
firm Halborn, brings a wealth of experience in protecting financial platforms
from evolving cyber threats.

On the
financial front, Robinhood reported impressive results for the second quarter
of 2024. The company achieved record-breaking performance, with total net
revenues reaching $682 million. This stellar growth was primarily driven by a
significant increase in transaction-based revenues and a surge in subscriptions
to its premium service.

In Q2 2024, Robinhood $HOOD earned $285 million in net interest income. $134 million came from interest on cash and deposits* earning 5.25%. Interest rate cuts will be a meaningful headwind for the company.

* Includes cash and cash equivalents, cash, cash equivalent, and… pic.twitter.com/tMlmEoXUja

— Jevgenijs Kazanins (@jevgenijs) August 7, 2024

The fintech
firm’s profitability also saw a substantial improvement, with net income rising
to $188 million, equivalent to diluted earnings per share of $0.21. This marks
a remarkable increase from the $25 million, or $0.03 per share, reported in the
same quarter of the previous year. These financial results reflect Robinhood’s
ability to monetize its growing user base and diversify its revenue streams
effectively.