Q4 2022 Robinhood Markets Inc Earnings Call

February 8, 2023

Yeah.

Good day and thank you for standing by welcome to the Robin Hood fourth quarter earnings Conference call.

At this time all participants are in a listen only mode.

After the speaker's presentation, there will be questions and answers from retail shareholders provided by say technologies, followed by a live question and answer session.

To ask a question during the session you will need to press star one one on your telephone.

You were there than here and automated message advising you your hand is raised.

Please be advised that today's conference is being recorded I would now like to hand, the conference over to Chris CAGR, Vice President and head of Investor Relations. Please go ahead.

Thank you Latif welcome everyone and thank you for joining us for Robert its fourth quarter earnings call with US today, our CEO and co founder glad tennis and CFO , Jason Warnicke before getting started I want to remind you that today's conference call will contain certain forward looking statements about our financial outlook and plans.

Actual results could differ materially from our expectations and we have no duty to provide updates unless legally required potential risk factors that could cause differences, including regulatory developments that we continue to monitor are described in our press release issued today the related slide presentation on our Investor Relations website, our Form 10-Q filed.

<unk> 2022 and in our other SEC filings. Today's discussion will also include non-GAAP financial financial measures reconciliations to the GAAP results. We consider most comparable can be found in the earnings presentation or on our Investor Relations website at Investor <unk> Dot Com Dot Robyn.

Dot com with that let me turn it over to Vlad.

Thanks for the insurer, Chris and thanks to everyone for joining us.

This earnings call marks the end of our first full calendar year as a public company and I think it's a great opportunity to really evaluate ourselves and reflect on how the year win what we promised we delivered and how we responded to the twists along the way.

Looking back one year at the Q4 2021 earnings call.

We committed to the following things.

Pending equities trading hours, which we delivered with hyper extended hours in March.

Introducing a new day to day spending experience and we delivered robinhood cash card and March also.

Rolling out our fully paid securities lending product, which we provided with the launch of stock lending and May adding iras, which we launched in December with Robinhood retirement, the first and only IRA with a built in match no employer necessary.

We're committed to providing faster and more money movement options, which we delivered with the launch of debit card funding in.

Instant withdrawals and support for U S D C and robinhood crypto and we committed to open up our crypto platform internationally, which we did with the launch of our non custodial robinhood wallet.

When we laid this out a year ago, we didn't anticipate a land war in Europe or inflation at a 40 year high, prompting one of the most aggressive tightening policies, we've ever seen from the fed.

This led to a sharp drawdown in growth stocks and a frigid crypto winter all of these factors presented extraordinary challenges for our customers and our company to navigate.

So nine months ago, we committed to returning to adjusted EBITDA profitability in Q4.

This was an aggressive goal and we delivered a quarter ahead of schedule by both lowering costs and increasing revenues. We also diversified our business as our net interest revenues more than doubled over the course of the year.

And to help customers generate more income in the new environment, We launched a revamped robinhood gold that offers customers an incredible for one 5% interest rate on their cash among the highest rates out there. We also strengthened our core business with a number of improvements to our trading products like options and cash accounts advanced charts.

And $24 seven live chat customer support we.

We did all of this and more while having to make some difficult decisions. We ended 2022 with about a third less head count than a year before I want to congratulate the team for their tremendous execution or product velocity has never been higher and the quality of talent at Robinhood has never been greater.

I also want to mention and Jason will discuss further in his section that we had a processing ore on a corporate action that led to a $57 million expense. This was really disappointing we've done a full postmortem and remediated the issue it.

It is important for us to build a culture of accountability. So following this event I made the decision to eliminate the executive team's 2022 cash bonuses. It's my responsibility to make sure that we learned from this adjust our systems and processes Accordingly, and ensure that we do everything we can to prevent errors like this from happening again.

<unk>.

Before I review, our Q4 product roadmap I want to provide a couple of shareholder updates.

As founders.

As you and I have always been motivated by our mission and our goal has been to build a financial services company that does right by our employees delivers extraordinary value to our customers and in doing so.

<unk> healthy returns for our shareholders. It took tremendous sacrifice on behalf of many people throughout 2022 to get robinhood to the healthy position we're in today.

And so at the end of the year basically and I were reflecting on this.

And we were thinking about whether there was more that we could do personally. So we decided we would cancel nearly $500 million of our combined share based compensation.

This lowers our GAAP operating costs by up to $50 million per quarter, starting in Q2, and it has already reduced our fully diluted share count by three 5%.

Second we also announced today that our board of directors has authorized us to pursue purchasing most or all of the Robin Hood shares that emergent fidelity technologies bought last May the board and management team are incredibly confident about the future of our business. We also have a fortress balance sheet with.

Over $6 billion of cash and feel very well positioned to execute on our growth plans. So we think this repurchase will be accretive over time.

And removes a distraction for shareholders since there isn't much precedent for situations like these we can't predict how long this will take but we will keep you posted as is appropriate.

Now I'll cover Q4 business results.

While assets under custody was down 4% in Q4 from Q3 due to lower valuations for growth stocks in crypto customer portfolios had a great start to 2023 in January as valuations rebounded customer assets grew by 20% to 75 billion the highest level in the past nine months. This January out.

Performance is a good reminder of the importance of investing through the cycle. So we're encouraged that customers continue to entrust us with billions of dollars each quarter, including nearly $5 billion of net deposits in Q4.

Now we've talked a lot about our product velocity and all of the new products, we launched last year.

And as we've continued to work on them, we're now starting to see meaningful traction on several of our new products, which gives us confidence that they can grow into a significant business lines over time.

First is stock lending, which we launched last may to help customers generate passive income by lending the stocks they are holding.

It had some good early results by reaching about $15 million of annualized revenue in Q3. Since then the team has kept iterating on the product relentlessly speaking with customers, improving onboarding, making more equities available to lend and migrating to a new collateral agent.

By the end of January we had over 1 million customers enrolled and we generated over $30 million in annualized revenue.

As we look ahead, we see lots of opportunities to improve the product, even more and make it even more accessible and useful to customers.

Next.

<unk> gold in September we launched an industry, leading 3% yield on cash and then raise the yield three more times to reach our current 415% rate. The customer response has been terrific as more and more customers feel we're giving them access to one of the best and easiest opportunities to earn yield in the U S Gulf subscribed.

<unk> increased in Q4 for the first time in over a year and gold net promoter scores have moved way up we've also seen gold cash sweep balances grow to $6 billion at the start at the end of January that's up by about 1 billion per month since the launch we're excited to keep investing in our gold offering and deepening these relationships this year.

Here.

In Q4, we also launched instant withdrawals are new money movement option to help customers, who want faster access to their money for everyday needs at a competitive one 5% fee. We're seeing strong early adoption here growing from 1% of total withdrawals when we launched in October to 7% in January <unk>.

Leading to about $20 million of annualized revenue.

Or just a few examples of how the products we've launched over the past year are now gaining traction and we see a path for many of them to drive meaningful revenue growth from here.

Finally.

I wanted to give you a preview of our 2023 product roadmap, while the macro uncertainty is leading some companies to pull back we plan to stay aggressive as we believe investing through the cycle is the right long term strategy. So let me highlight a few of the opportunities we're working on.

First deepening relationships with our existing customers as we grow into a larger more diversified company. We're shifting our focus from just adding users to driving net deposits well retirement is off to a good start and we're working to take our first steps on the path to advisory, which can bring even more customers into the market in the future.

Second is becoming the best destination for advanced customers.

Last year, we made a ton of progress by launching several new products and features that drove advanced customer NPS significantly higher a great sign for growth and retention.

This year, we will go beyond tools and improved experience and really innovate for our advanced customers. We're excited to show you what we have in store.

<unk> International we recently launched Robinhood wallet, which empowers customers around the world to custody their own crypto.

We're getting more aggressive this year and have set a goal to offer brokerage services in the UK by the end of 2023.

I'm also excited that we hired JV Mckenzie and industry veteran from Schwab and TD Ameritrade to lead our international brokerage efforts.

We're really excited about the year ahead. The roadmap is full and there is so much to do with that I'll turn it over to Jason.

Thanks glad it's good to speak with everyone today.

In the fourth quarter, we stayed focused on serving customers growing our business and driving long term shareholder value.

Our team continued to deliver on our product roadmap and we generated positive adjusted EBITDA for the second quarter in a row.

I'm proud of what we accomplished last year and look forward to 2023.

Before I discuss our Q4 results I want to provide context around the air that Vlad mentioned each quarter, we process hundreds of corporate actions as part of our day to day operations. In December we received notification of a corporate action that was irregular both in its timing and format and unfortunately I got through.

Our controls Cosmos Health, Inc. A NASDAQ listed company effected a one for 25 reverse stock split on December 16th a processing error caused us to sell share short into the market.

And although it was detected quickly it resulted in a loss of $57 million as we bought back these shares against a rising stock price.

While this event was an outlier as Vlad said, we're taking it very seriously and have made the necessary changes to do everything we can to ensure this won't happen again.

With that let's look at the fourth quarter, starting with business results. We continued to add new customers growing net funded accounts to $23 million up about 50000 from Q3, we're off to a good start in Q1 as well by adding about 60000 accounts in January .

I'd also note that we only include unique users and our net funded account definition. So this metric doesn't benefit from existing customers opening retirement accounts. So we're working on additional disclosure to show how many of our products customers are using.

For monthly active users they were $11 4 million down 800000 from Q3, though meus increased back to roughly $12 million in January .

I'd also note that the vast majority of our customers continue to engage over time, even if they are active every month. For example, if we look at the last three months of 2020 to over 16 million unique customers were active and if we look over the last six months that.

That figure grows to over 20 million customers.

Turning to assets under custody, while they were 62 billion in Q4 down about 4% from last quarter. They rebounded to 75 billion in January as growth stocks in crypto recovered looking.

Looking at net deposits they were $4 8 billion in Q4, which translates to a 30% annualized growth for the quarter and brings the full year rate to 19%.

We're encouraged by the resiliency of customer net deposits, which positions us really well for growth as markets rise over time.

Now, let's look at Q4 financial results, we grew adjusted EBITDA to $82 million, which was up $35 million from last quarter. This brought our adjusted EBITDA margin to 22% in Q4, which is up nine points from Q3.

<unk> forward, we remain focused on delivering positive adjusted EBITDA and are driving attractive margins over time.

Looking at our GAAP results Q4, EPS was negative <unk> 19.

An improvement of <unk> <unk> from Q3. This included a combined negative <unk> <unk> impact from the processing error and an impairment charge on zig Lou.

Q4, EPS prior to these impacts was negative 11.

Now, let's review our Q4 revenues total net revenues were $380 million, a 5% increase from Q3.

This was primarily driven by higher net interest revenues, partially offset by lower transaction revenues Q4, <unk> was $66 up from 63 last quarter.

Next transaction based revenues were $186 million in Q4 down 11% sequentially, primarily due to lower equity in crypto notional volumes in January we saw equity option and crypto volumes all roughly in line with Q4 averages.

Moving to net interest revenues they reached a new high of $167 million in Q4 up 30% from Q3.

The increase was primarily driven by higher short term interest rates and 12% growth in interest earning assets. These factors were partially offset by lower margin balances and securities lending activity given the macro environment.

Looking ahead to Q1, we are encouraged by what looks like likely to be another quarter of net interest revenue growth as we consider what we see today for the forward fed curve customer balances and deposit rates as well as some pickup in securities lending activity. We anticipate Q1 net interest revenues will be up by roughly.

$20 million from Q4.

Additionally, as we now appear to be in the later stages of the fed rate hiking cycle I wanted to note that we are exploring strategies to reduce our interest rate sensitivity and we will keep you updated when we have more to share on this.

Yes.

Moving on to other revenues they were $27 million in Q4 up 8% from Q3 gold subscribers increased by about 50000 sequentially and we plan to keep investing so that more of our customers find value in becoming a gold member.

Looking ahead to Q1, we expect other revenues to be similar to Q4 levels.

Looking a little farther ahead Q2 is proxy season, which drives a seasonal increase in revenue and.

And late last year, we transferred our proxy services from a third party to our say technologies team. So in Q2, we expect to see a sequential increase of about $30 million from Q1 levels.

Now, let's look at Q4 expenses prior to SBC, the processing error and some minor carryover from our Q3 restructuring Opex was $319 million, which brought our full year total to $1 $5 5 billion.

These 22 2022 results were an 18% improvement versus the prior year as we moved to a leaner cost structure looking.

Looking forward to 2023, we're planning to improve our costs by another 7% on average as we plan to keep our costs lean while investing for future growth.

Our outlook for 2023 Opex prior to SBC as a range of 142 to one $4 8 billion.

I'd note that on a quarterly basis. This outlook is about the same as the Q4 2022 range, we provided last quarter.

I think this is a good zone to operate our business this year.

Turning to SPC it was $160 million in Q4, which brings our full year total to $654 million.

Looking ahead <unk> decision to cancel their 2021 pre IPO market based awards significantly lowers our outlook for the back half of this year under.

Under accounting rules, we will record a Q1 noncash charge of about $485 million for the full acceleration of the canceled awards.

We also expect SBC this year, excluding the charge will be in a range of $470 million to $550 million, which is a 22% improvement on average from last year.

Including the charge our full year 2023, SPC outlook is a range of $955 million to 1.035 billion.

For Q1, we expect SBC of $615 million to $645 million, mostly from the accounting charge.

Given our progress on costs over the past year and improved SPC outlook, we now expect to get much closer to positive GAAP net income in the back half of this year.

Beyond that we think it's a little early.

To predict a specific timeline for reaching GAAP profitability as our revenues vary with the market backdrop.

That said, we're focused on getting there by keeping our cost lean scrappy to drive operating leverage as our business grows while staying flexible to invest for the long term.

Now to capital management I wanted to touch on a couple of areas first on the Ziegler deal after careful consideration robinhood terminated the deal and we booked a $12 million charge in Q4.

Second as <unk> mentioned, our board authorized us subject to final approval to purchase our shares that emergent fidelity technologies bought in May of last year, we're confident in the future of our business. So we think it would be a smart use of our excess corporate cash to buy most or all of the roughly 55 million shares.

While continuing to have a strong balance sheet to invest for growth.

In closing I'm really pleased with all that we accomplished in 2022 delivering on our product roadmap moving to a lean and scrappy cost structure and ending the year with two straight quarters of adjusted EBITDA profitability.

As we look ahead, we see a large opportunity to grow shareholder value from here.

And with that Chris let's move to Q&A.

Thank you Jason.

Leading into this quarter's Q&A session, we will start by answering some of the top questions from say technologies ranked by number of votes will pass over any questions that were answered on the call already in part or in prior quarters.

And grouped together questions that share common theme after that we will turn to live questions from our analysts so I'll kick it off with some of our questions from say.

So first.

John asks what is the product roadmap look like for 2023, but I do want to take that one yeah. Thank you as always sajan for for the good questions.

So I mentioned, a little bit in the call, while the macro environment might be.

Leading some companies to be less aggressive we plan to stay aggressive and there is there is three things that we're focused on in terms of product roadmap. The first thing deepening relationships with our existing customers and.

You've seen that we've been very successful in providing value in terms of higher interest on cash with our gold product. We also rolled out retirement and are very excited to offer the first IRA with a built in match no employer needed. We think it is.

Particularly useful for gig economy workers and other freelancers. So we're going to continue to invest in that and grow that we think that.

Gives us.

Sort of a great entry point towards offering advisory services to customers.

Becoming the best place for advanced customers. So this is our customers that trade a little bit more actively use options engaging in equities trading.

We've made a lot of progress this year and we're working even harder to deliver innovative new.

Functionality for our more advanced customers and then the third international So we recently launched Robinhood wallet. We're also working aggressively this year to bring brokerage services internationally and we're excited to welcome J B, who will be leading the efforts to take our brokerage internationally.

Great Alright. Thank you Bob the next question is from Jason our who asks.

One will rather had go global and allow users to buy individual shares from all over the world listed exchanges.

Sure happy to field that one so there is really two questions there.

First of all for our U S customers were very focused on expanding selection and being the best place for you to invest in trade.

In terms of access to foreign securities customers can trade <unk> today, VR platform Commission free and that gives investors exposure to foreign trade stocks.

The second thing expanding our operations internationally, so that customers based in other countries can access robinhood services.

A huge part of our mission, we think that we've done a lot of great work to open up access and to make investing more accessible to.

People in the U S. U S is comparatively a mature market where access is.

It was pretty good relative to some parts of the world. So we think it's a natural extension of our mission and a great business opportunity to take our technology and make it available overseas I talked about robinhood wallet, which is available globally and will allow customers all over the world to self custody have control over their crypto.

And trade and swap with no network fees.

On the brokerage side, we're being more aggressive and set a goal to start brokerage operations in the UK This year so.

Look out for that we're very very excited to make Robin hood available all over the world.

Awesome. Thanks, a lot alright. The next question comes from GEC, who asks Theres a new feature that was implemented by Twitter that directly links users to the revenue that what's the relationship between Robinhood and Twitter is there an official partnership forthcoming.

Yeah sure. Thank you part of the part of the mission of Democratizing Finance for all is giving access to the best information.

Whenever and wherever our customers need it so we've been speaking to the folks over at Twitter for a while.

<unk>.

<unk> about what they were doing with the stock pages in crypto pages on their platform and we got excited to create an investing experience that gives value to their customers and makes it easier to deep link to the Robin Hood App, So you'll see us experimenting with more things like this over time.

As of now we don't have any plans to expand or form unofficial partnership with Twitter.

Alright. Thank you. Okay. So the next question is from William C.

What happens if the SEC bands payment for order flow.

Sure I'll field this one.

The first thing to note here is as you've seen through the quarterly results and the progress we've made in diversifying our business. We've got a diversified business and are continuing to grow and we feel like we're incredibly well positioned.

In terms of payment for order flow and the SEC market structure proposals.

We think investors have great right now.

All in costs of investing the accessibility the tools and functionality.

Have never been better and.

We're worried that these proposals have the potential to give investors worst execution quality and higher prices in many instances and these are really complex proposals it'll take a long time to work through them.

Ultimately, we think they are unlikely to pass in their current form so we're going to keep working with the SEC, including our comment letter coming soon and make sure our customers continue to receive the best deal and and have access to equities trading and make sure we're continuing to advocate for what we.

Think is right for our customers.

Alright. Thank you. The next question is.

Related so it asks.

Mark.

Well Robin Hood become a member of the New York stock exchange and NASDAQ and reduce its reliance on payment for order flow. We actually are already a member of NASDAQ we have a connection there and a portion of customer orders are routed there the way that we think about execution quality and routing orders as the routing is.

Based on.

Execution quality.

Really the deciding factor so we aimed to send customer orders where theyre getting.

First execution quality, and we actually publish execution quality statistics on on our website and we're very proud of it.

Alright. The next question is for Jason will robinhood ever worked with tax companies like turbotax to get tax information to clients at a faster pace.

Yeah.

Thanks.

Already worked with Turbotax and in fact customers get a $15 discount.

Upload to turbotax.

We've been making a number of changes to the tax experience for customers. This year, we consolidated the tax form for customers, who are trading both equities and crypto so they receive a single.

Tax form for Robin Hood, this year, which makes it a lot more convenient.

And also we're sitting in a form that makes it really easy for customers to upload their data to the tax software of their of their choice and then also we've already sent well ahead of the deadline millions of these forms out to customers and should have the remaining ones out really soon so we're making a lot of progress for customers on the tax front and proud of the team.

For doing that.

Great. Thanks, Jason Alright, let's do one more before I open the call to analysts. So wed GEC asks any thoughts on creating a robinhood pro app with more advanced charts tools data and live streaming news feeds and chat rooms to keep them more advanced users staying strictly on robinhood.

Thanks Keith.

We think serving our advanced customers is incredibly important as I outlined.

Little bit earlier, it's one of the top three things we're working on this year, we made a lot of progress last year.

Really improving the experience for them and we spend a lot of time talking to our advanced customers and what we're hearing is.

They stay with Robinhood and they love Robinhood, because we make things simple and easy to use and they actually love the flexibility to be able to see a very simple overview of their portfolio and their holdings and be able to trade simply.

Along with the flexibility to dive into things like advanced charts and tools and features when they need to.

So right now we think we can deliver on an awesome experience for advanced customers within the existing Robinhood app.

And so we're not necessarily going to be creating a separate app, but we.

We're focused on making Robin Hood, the best tool for our advanced customers.

Alright, Thanks, Brad and thank you for everyone for your questions. We really appreciate all the thoughtful engagement from our shareholders and customers and now it's time to open up the line for analyst questions.

So with that I'll turn it to Tim Latif.

Thank you as a reminder to ask a question you will need to press star one one on your telephone please standby, while we compile the Q&A roster.

Our first question comes from the line of Devin Ryan of JMP Securities. Please proceed Devin.

Thanks, so much good afternoon.

Jason.

Hi, Devin.

First question.

Obviously nice to see the acceleration into solidly positive adjusted EBITDA, which has been driven more by getting leaner on expenses and so.

If you do start to see an acceleration in engagement from some of your newer initiatives or just a broader improvement in the operating environment should we expect that you would potentially re ramp on certain growth investments where are you comfortable you can execute at the speed that you want to kind of at the new leaner model and obviously that would imply more would fall to the bottom line and ROIC.

The question is.

How you want to manage the business over time as you kind of get to eventually this GAAP profitability is it.

Further expanding profitability from there or you are you then happy to kind of really lean in on growth investment.

Thanks, Kevin This is Jason I'll take it and then Vlad can add in if he has additional color. We think theres a lot of leverage that we can achieve as we grow our business over time.

To continue to manage our costs to stay lean.

That said, we will have some flexibility to lean in a little bit more.

On investments that we think are the right ones to make.

But.

The guidance that we've given incorporates the investments that we're planning for the things that we've talked about and have in our plan for this year. So we feel really good about the range that we've given on opex given our growth plans.

Yes, the only thing I would add is.

Last year was in terms of products one of the best years, we've had we've rolled out lots of new products to customers and as I mentioned earlier in the call to have.

Two of our recent products.

A relatively short amount of time.

Get to double digit millions in.

<unk> and <unk>.

In a year like 2022, we're incredibly proud of so stock lending as we mentioned getting to a $30 million run rate instant withdrawals.

Within a couple of months of launch getting to $20 million. So we have we have new businesses that we were able to rollout and.

I think this year, we're in a great position to keep investing in and be aggressive.

Okay terrific follow up just on crypto, so customer engagement and crypto really saw some pressure after the ft X related contagion and obviously.

Following valuations as well to.

To start the year, we are seeing some improvement in valuations and so just curious from what you guys can track internally does it feel like customers, primarily just move to the sidelines versus exiting the space altogether and the interrelated how do those events in the fourth quarter effect, how youre thinking about just the crypto offering more broadly how you are budgeting for in developing the roadmap.

If at all thanks.

So so devin we have seen a pickup in the first part of the year to levels that are kind of on par with the average for for Q4. So I would say it was a bit of a step on the sideline watch a little bit, particularly in the month of December but we're definitely encouraged.

With what we're seeing in the first part of the year and really into February .

We continue to think that crypto is here to stay.

And we're continuing to invest in this space and are really optimistic yes, you probably saw we recently launched a robinhood wallet, which really gives the power and.

The utility of health custody to customers.

We're continuing throughout the year to make improvements to.

Our core robinhood crypto offering as well.

Got it okay terrific. Thank you so much.

Thanks, Kevin.

Yeah.

Thank you.

Our next question.

It comes from the line of will Nance of Goldman Sachs. Please go ahead will.

Hey, guys. Good evening I appreciate you taking the question.

I think you made some comments in the prepared remarks, along thinking about that level of asset quality answers.

Okay.

Can you can use team to bring that down and I'm wondering if you could expand a little bolt on.

The thing is contemplating.

Maybe a framework for how you might approach it.

One situation, where you think you could remain EBITDA break even or positive even if we see significant fall in interest rates over the last couple of years.

Yes, well, it's a great question look its not lost on us that net interest revenue as a rising an important part of our mix and it's something that we're paying really close attention to it's a little early to talk about the specific strategies that we're that we're looking at.

But really just wanted to signal to shareholders that it's something that we're paying attention to and we look forward to implementing some strategies that will decrease the sensitivity that we have there. So we'll update you over time, but unfortunately, I, probably shouldn't get too far into the details I would be getting ahead of myself.

Understood I appreciate that and then maybe a question for Vlad on M&A strategy.

Laid out a handful of things in today's release international expansion.

More retirement I think you mentioned advisory I guess, just how are you thinking about the role of M&A in Europe .

Product roadmap. It seems like you guys have gone the internal route for the majority of your new products and I think about securities lending retirement, thus far but any kind of change in that approach or any any thoughts around where you get more aggressive on the M&A front.

Yes, Youre right will that we feel very confident in our ability to roll out products and sort of independently.

Build new features that serve our customers that said, it's not lost upon us that we have a large balance sheet in the environment now.

It's going to create some opportunities.

We have done M&A in the past, we're very deliberate about the opportunities that we're considering we consider things like.

Acceleration of our roadmap team quality and fit.

And we're proud of the M&A that we've done thus far.

Jason mentioned stay technologies, I think that team has integrated very well and is driving.

Considerable business impact in terms of revenue to Robin Hood, So big.

We've had a good deliberate approach and we do see opportunities with our balance sheet going forward.

I appreciate you taking my questions. Thank you.

Thanks, Paul.

Thank you.

Our next question comes from the line of Steven <unk> of Wolfe Research. Your question. Please Stephen.

Hey, good afternoon.

So David.

Certainly encouraging to hear some of the positive commentary around retail engagement starting to improve certainly seeing some inflection in some of those brokerage metrics. If I think about the the narrative with regards to the fundamentals in 2022.

Dude retail engagement NII tailwind better cost control.

And given that the rate sensitive revenues arguably close to peaking.

The expense guidance for full year, 2003 implies modest growth well controlled but still growth versus that 422 exit rate.

Really does feel like the path to profitability is almost exclusively contingent.

Better retail engagement metrics and wanted to understand first if the engagement moderate how much flex you have in the model to bend the cost curve and then second and this is more nuanced, but on GAAP profitability. The expense guidance for full year is $1 95 billion. The <unk> revenue guide.

Implies closer to low one fixes and just wanted to understand what the revenue growth levers you can pull to help you close that gap certainly the kpis are improving but just wanted to get a better sense as to how we can reconcile that path to GAAP profitability as well.

Yes. So the first part of your question is just.

What kind of levers we have an on cost.

2020 to Mark a big shift towards getting lean and mean productive I think theres more opportunity there.

I wouldn't say that there is the kind of opportunity that we were able to realize in 2022, but you should expect us to continue to find ways to be more efficient across the company and serve our customers great even while being super efficient.

We're feeling really good at the level that we're at we think it's a good level to operate in 2023.

But that said, there's always ways to be more efficient and I know the finance team the engineering team and others across the company are constantly looking for ways to optimize our costs and so.

So I wouldn't say, we're as low as we could possibly be right now and certainly about a third of the increase in our.

And our kind of run rate cost into 2023 are about pursuing new new growth initiatives in growing the business, which I think kind of.

It takes us into the second part of your question is what are we doing to drive growth.

You heard Vlad talk about all the initiatives that we rolled out last year and highlight a few of them that are starting to get some traction on a revenue basis.

We want to build a portfolio of businesses and services over time that can each in its own right become like nine figure and growing revenue contribution some of them will get going faster than others, but it's a long term effort for us.

And we're going to keep investing in key planting seeds.

<unk> just by improving the experience that we're offering on our existing businesses. If you take fully paid securities lending for example, when we initially rolled that out we had.

In the first few months, we had a run rate of about $15 million and Thats, great Thats, a great way to kind of get started on a new business, but the team didn't stop they kept iterating that kept finding ways to.

To get more people to adopt to get more efficient and better tools in the hands of our trading desk.

And now we're running at a $30 million.

And as a direct line between all the work and all the iteration that's been going on since launch and so youre going to see us launch products youre going to see us iterate on those products and just keep keep driving.

For improvement and I think when you when you add all that together it Lee.

Leads to revenue growth over time.

Lots of singles and doubles got it.

If I could just squeeze in one more just <unk> tack modeling question.

You mentioned, the reaffirm the dilution of 4% or less in 2023 in terms of share count does that contemplate any of the buybacks.

Our planned buybacks of the MTX founder shares and is there any appetite to initiate buybacks just given the improved EBITDA profitability that youre seeing.

Yes. Thanks for your question no it doesn't incorporate any anticipated repurchase of those emergent fidelity technology.

Sure. So so good clarification, there and in terms of kind of ongoing repurchases at this point, we're just focused on.

Buying the buying the shares that we had talked about and we'll save for later as we think about.

Capital management.

We really want to be investing in the business for growth, having flexibility to complement that organic growth through M&A, and then kind of as a third.

<unk> in priority order would be thinking about returning.

Value to shareholders through things like repurchases. So so nothing to announce there and nothing to signal either.

Great color. Thanks, so much for taking my questions Jason.

Thank you. Thank you.

Thank you our next question.

Comes from the line of Richard Repetto Piper Sandler Your question. Please Richard.

Yes, good evening, good evening, Jason and team.

First congrats on the right.

Congrats on the right quickly right sizing the company last year. So I also wanted to thank you for given all the color on that.

I guess sort of a rebound in engagement in January and I guess two sort of questions does that include we saw it.

Deleveraging in the brokerage you saw your margin balances much assures but across the industry drop so our margin balances.

And you gave us half the picture of the engagement I think a lot of people are wondering how profitable.

These flows are from retail investors.

Sure.

Could you just sort of give us qualitatively.

On the capture rates, what youre, making the spreads et cetera.

Got determined the payment for order flow.

Have they improved as well in January .

Yes. So in terms of the margin book, we have seen it move up I wouldn't say it was a big move up in January but it has it has moved up slightly from the levels that we saw right at the end of the year in terms of the take rate on equity piece off nothing's changed structurally there it moves with kind of the mix of.

Of what our customers are buying and selling.

As well as the level of spreads on the things that they're buying and selling.

So that's probably all the color early I have on the on.

The take rate.

Okay.

And my one follow up you've done a great job at diversifying.

The revenues of the new product rollout so.

Can you give us just given up I still think thats bumpy a few more hikes come in.

So whats the sensitivity.

Jason to the.

Next.

Next fed rate hike.

Yes, so what we said for next quarter is that we think interest interest revenues will move up about $20 million versus what we saw in Q4.

We're providing a schedule in our investor presentation that kind of lays out the $18 billion of interest earning assets when do you expect as well.

When those rates come that a good majority of that should flow through against those interest, earning assets offset by anything that we pass along too.

To our customers.

And in that regard, we look primarily at the gold cash sweep.

And our rate right now is 415, so the take rate there relative to the fed funds effective is roughly 50 basis points, we're giving over 400 basis points by comparison to our customers. So the vast majority of that that is going to two customers and really when we.

Think about pricing on that we just want to be at or near our kind of with the top of the market and comparable offerings, which we think we're doing a really good job and customers are seeing in reacting to.

Got it thank you very much.

Thank you.

Our next question.

Comes from the line of Kenneth Worthington of Jpmorgan. Your line is open Kenneth.

Hi, good evening or afternoon. Thanks for taking the questions. So maybe first on the cash card you guys relaunched it I wanted to follow up there how.

Many of your cash management customers have transitioned to the new card and what is the number of sort of cash cards outstanding at this point I think at the last quarter. It was 500000 and then if it's possible can you give us any insight into the cash card customer in terms of like average number of transactions and app.

<unk> size of transactions.

Hey, Ken This is Jason I'll take that and Vlad can jump in with any additional color. So it's an opt in rather than opt out for the cash management customers that are moving over and so far we've seen kind of a slow uptake in the opt into the to the cash card and Thats something that were looking at were yes.

I talked earlier in one of my responses to just Iterating and.

And improving our offering and so we're talking to customers, we're working on optimizing the onboarding flow.

And we hope to see even more customers choose to adopt the cash card. We're also looking at the just the value proposition of the cash card and over time, we'll continue to iterate on that until we until we get to a point that we think we've got really good.

Right product market fit.

In terms of the update on the number of kind of card users. It's around 800000. So it's up a couple hundred thousands since the last time that we.

Shared that with you.

And then.

Of that 800000, there is a.

A minority of that that are engaging more frequently as kind of top of wallet and that that also is something that we're looking at to make sure that we just get the value proposition right for customers and get it to where the green Robin Hood car just moves up to the top of the stack and our customers' wallets so well.

It's early and we will continue to update you as we make progress there yes, the only thing that I would add is.

Like we said with stock lending.

Post launch we made a ton of improvements to the product in the funnel and we're really proud of the work that we continue to do there with the cash card.

The same story.

Got a great team on it the roadmap is full there is a lot of exciting things coming so we're very excited about.

How much that product will improve in the near future.

Okay, great. Thank you and then trading volumes have been resilient and options relative to the other asset classes.

What is the experience your clients are having in options like can you tell are they making money and options as your experience getting better over time and if they are making money and options. Why do you think the experience is better there than in equities in crypto.

Well one of the things we've been really looking at is the net promoter score the retention characteristics.

Our options product.

And we've made a lot of improvements in the past year at the beginning of 2022, the more advanced customers the ones that we're engaging in options a little bit more were on average less happy with our service than than the typical customer and then we were able to to reverse that quite aggressively.

In a relatively short amount of time.

And that's through things like options and cash accounts better customer support including $24 seven live chat with which launched a couple of months ago advanced charts and more tools, there and we continue to rollout awesome.

<unk> innovative options features with a lot more coming this year. So really the options team has been firing on all cylinders, we're really happy with kind of a relative market share.

The work the team has done there and it's been a it's been as you know Ken just a really challenging macro environment not just for our customers but for.

All market participants frankly over the last year or so and Thats one of the reasons why we're really excited about being able to offer over 4% yield on the gold.

Cash sweep program.

Introducing retirement, which is going to help customers just kind of systematically.

Dollar cost average over a long period of time to reach their goals and so really you're going to see robinhood evolve.

Its platform, so that no matter, how customers want to trade Robyn and it'll be the place to do it and so.

It's a long term strategy for us, but we're making progress there.

Great. Thank you very much.

Thanks, Scott I appreciate the question.

Thank you.

Our next question.

From the line of Michael Cyprus of Morgan Stanley . Your question. Please Michael.

Hey, good evening. Good afternoon. Thanks for taking the question, maybe just coming back to your earlier point around innovating for advance customers I was hoping you could maybe elaborate a bit on what additional functionality could be helpful. Thats not offered today and to that point, we see tremendous growth in index options, including some of the smaller sized index options contracts yet.

I do not believe they are available on the robinhood.

Robin your customers. So just curious how you think about the opportunity there what hurdles that there'd be for adding index options I understand there are a bit different enough cash settled as opposed to net share settle so how much of a platform built would that require.

Require and how does that stack up on the priorities robinhood here in 'twenty three.

Thanks for the question I'll field that one.

I don't want to let the cat out of the bag too early I think we've got some really exciting things.

In store certainly we're looking at new assets, and new features and JB and Steve Quirk.

<unk> team there they are putting a great team together they care a lot about advanced customers, they've really done wonderful things in the past with.

Stinker swim and TD, which really.

Innovated for advanced customers.

I think.

I think we've got another year, we can go here at Robinhood, so stay tuned.

Any comment on the index option side is that something you guys are interested in or not not of interest to your customer set.

I think index options are interesting again, I shouldnt comment on any specific assets, but we're certainly looking at everything.

Great if I could just ask a follow up question on the expense side you guys have made tremendous progress on bringing down the pace of that Alex.

If I just look at 'twenty three it looks like the guidance is a little bit of a growth relative to the fourth quarter run rate. So just hoping maybe you could unpack some of the moving pieces that are driving expense growth from fourth quarter levels and maybe you could comment on the head count growth inflationary pressures, how that's all impacting it versus.

Yes, so very very modest head count growth, we had a number of open positions at the end of the year.

Adding to fill those and then very very modest.

Incremental growth on top of that primarily for funding investments in growth. If you think about the run rate for Q4.

Excluding share based compensation that gets you to roughly $1 3 billion and then our guidance was 142 billion to <unk> four 8 billion for the year.

So to unpack that a bit there's really three categories of incremental growth versus the run rate from the fourth quarter.

Each of them represent a roughly a third so a third a third and a third for the following categories. The first is just kind of first you've got a normalized Q4 spend for things like seasonality as well as.

We're assuming that we fully fund our company's bonus program in 2023, whereas we're paying much less and then fully funded in 2022, given the macro environment and how the year went for us and so you kind of if you take seasonality in that bonus effect, that's roughly a third of the incremental off of off of.

Q4's run rate the second is just existing business growth continuing to.

Deliver and improve on the existing products that we have it includes things like merit increases for employee compensation that happens regularly.

On an annual basis pull through of expenses that started kind of late in the year and you get the full year effect.

And then the third category also as I mentioned roughly a third of the incremental is just investing for new business growth and so that really bridges.

The baseline to the guidance.

Great. Thank you very much.

Thank you.

Our next question comes from the line of Benjamin boost of Barclays. Your line is open Benjamin.

Hi, Thanks, so much.

Hey, guys. Thanks, so much for taking the question I wanted to ask about the UK launch I understand that it's the target is for the end of the year, but.

We sort of understood that <unk> was expected to be a little bit of a launching off point that and what that deal no longer happening. If you could share any thoughts on kind of your go to market strategy or are you thinking about leading more with the robinhood wallet and kind of how do you think about the competitive environment over there.

Yeah happy to feel that so the Robin Hood wallet as global by default, it's a self custodial web three wallet that offers.

Trading and swapping with with no network fees.

So that that we're very excited about <unk>.

App from the main Robinhood, App, which offers brokerage services and the goal for this year, we will be getting brokerage services live in the UK by the end of the year.

Okay, great. Thanks, so much if I could sneak one in as well.

Just on your net interest revenue.

You beat your own kind of guidance pretty nicely in the quarter I guess, where are you sort of the most surprised and if we're thinking about the first quarter, where would you expect that.

We're.

Similar outperformance.

Do you think that would be most likely to come from.

Thanks.

I don't want to predict where the outperformance might come in the following quarter.

Certainly it's sensitive to the interest earning assets that we carry movements in.

And things like the margin book could definitely be a lever.

Outperformance in securities lending would be another area that.

That might surprise.

In Q4, we did outperform our expectations.

That mostly to just.

Nice asset nice asset growth and a little bit better on deposit betas than we had forecast into the model.

Okay, great. Thank you so much.

Thanks, Dan.

Thank you.

Our next question comes from the line of Alex Mark Graff.

Keybanc capital markets. Your question please Alex.

Hey, Vlad Hey, Jason a.

A couple of questions I, just wanted to jump back to I guess first robinhood wallet.

Just wanted to understand how you feel about the completeness of the offering at this point and kind of parity versus global peers in a wallet side.

And then just any sort of planned marketing initiatives in international markets for 'twenty three to keep in mind.

Yes on the wallet side.

The core functionality is in place and we're getting great feedback from customers. There are a bunch of things that we're looking to add to make it even better and the roadmap for that team is pretty full.

<unk> been.

<unk> been executing pretty relentlessly so kudos to the wall team for that.

Then.

I'm sorry, you had a question about international beyond that international marketing marketing, yes.

It's really early for for US of course, we're open to doing marketing in the future, but right now we're focused on.

Pulling out the product and getting as much feedback from the users on the waitlist as possible.

Yeah.

Awesome and then just on UK brokerage I guess, maybe just to expand on the earlier question.

What are some kind of key operational milestones that we should be thinking of as you look to launch that by year end.

Yeah, it's mainly just making sure the technology is.

In really good shape, and we adhere to all the different requirements.

The UK market, making the experience seamless.

The forex money conversions, and things like that and talking to customers and making sure that.

We do any UK specific adaptations that that we think will make the product as useful as possible for them, but we think we have a great Foundation.

We've made really big improvements in our infrastructure and technology over the past couple of years.

Scaling we don't anticipate will be a problem, it's more about just getting the user experience.

And getting getting everything set up there.

So this is Jason.

We're hearing from our PR team that one of the news outlets.

As incorrectly reporting that Robin Hood is effecting a split on our on our stock I just want to be Super clear that that is that is not.

Any plan that we have it's not.

It is not factored factually accurate and so.

For all those listening if you can spread that correct news that would be that'd be fantastic. Thank you.

We don't have any more questions.

I would now like to turn the conference back to <unk> for closing remarks.

Thank you everyone really appreciate the questions and we will see you all next quarter.

Some of you sooner.

Thanks, everyone.

Thank you. This concludes today's conference call. Please disconnect your lines at this time.

The conference will begin shortly.

Ladies and lower Johan during Q&A, you can dial one one.

[music].

Okay.

[music].

Yes.

[music].

Yes.

Okay.

Yes.

Okay.

Yes.

Sure.

Yes.

Sure.

Okay.

Yes.

[music].

Okay.

Yes.

[music].

Okay.

Yes.

[music].

Okay.

[music].

The conference will begin shortly to raise and lower Johan during Q&A you can dial one Glenn.

[music].

Okay.

<unk>.

Yes.

[music].

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

[music].

Okay.

[music].

Okay.

Yeah.

Okay.

[music].

Okay.

[music].

The conference will begin shortly two ways in leola Johan during Q&A, you can dial one one.

[music].

Yes.

Okay.

Yes.

Sure.

Yes.

[music].

Okay.

Yes.

Sure.

Okay.

Sure.

Okay.

Yes.

Yeah.

So.

And.

[music].

Okay.

Yes.

[music].

Yes.

[music].

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Sure.

Yes.

Okay.

Yes.

Okay.

Thank you.

Yes.

Sure.

Yes.

Okay.

[music].

Sure.

Okay.

Thanks.

Sure.

[music].

Sure.

Okay.

Yes.

Okay.

Thanks.

Okay.

And.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

[music].

Yes.

Okay.

Yes.

Okay.

Sure.

Okay.

Yes.

Okay.

Sure.

Yes.

[music].

Yes.

Okay.

Sure.

Okay.

Yes.

Okay.

[music].

Okay.

Sure.

Okay.

Sure.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Sure.

Yes.

Okay.

Yes.

Thank you.

Thanks.

Yes.

Okay.

Thanks.

Yes.

Okay.

Sure.

Okay.

Yes.

Sure.

Okay.

Yes.

Okay.

[music].

Thanks.

Okay.

Sure.

Yes.

Okay.

Sure.

Yes.

Okay.

Sure.

Yes.

Okay.

Yes.

Okay.

Yes.

Yeah.

Okay.

Thanks.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Sure.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Sure.

Thank you.

Yes.

Okay.

Yes.

Sure.

Okay.

Yes.

Sure.

Yes.

Hum.

Sure.

Okay.

Sure.

Okay.

Thanks.

Okay.

Yeah.

Okay.

Please.

Okay.

Sure.

Yes.

Okay.

Sure.

Yes.

Okay.

Yes.

Okay.

Yes.

Thank you.

Sure.

Yes.

Okay.

Yes.

Sure.

Okay.

Yes.

Sure.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Good day and thank you for standing by welcome to the Robin Hood fourth quarter earnings Conference call. At this time, all participants are in a listen only mode.

After the speaker's presentation, there will be questions and answers from retail shareholders provided by say technologies, followed by a live question and answer session.

To ask a question during the session you will need to press star one one on your telephone.

You were there than here and automated message advising you your hand is raised.

Please be advised that today's conference is being recorded I would now like to hand, the conference over to Chris CAGR, Vice President and head of Investor Relations. Please go ahead.

Thank you Latif welcome everyone and thank you for joining us for Robyn <unk> fourth quarter earnings call with US today, our CEO and co founder of lab tenants and CFO , Jason Warnicke before getting started I want to remind you that today's conference call will contain certain forward looking statements about our financial outlook and plans.

Actual results could differ materially from our expectations and we have no duty to provide updates unless legally required potential risk factors that could cause differences, including regulatory developments that we continue to monitor are described in our press release issued today and related slide presentation on our Investor Relations website, our Form 10-Q filed.

November 2022, and in our other SEC filings. Today's discussion will also include non-GAAP financial financial measures reconciliations to the GAAP results. We consider most comparable can be found in the earnings presentation or on our Investor Relations website at Investor <unk> Dot Com Dot Robyn.

Dot com with that let me turn it over to Vlad.

Thanks for the insurer, Chris and thanks to everyone for joining.

Looking back one year at the Q4 2021 earnings call.

We committed to the following things.

Pending equities trading hours, which we delivered with hyper extended hours in March.

Introducing a new day to day spending experience and we delivered robinhood cash card in March also.

Rolling out our fully paid securities lending product, which we provided with the launch of stock lending in May, adding Iras, which we launched in December with Robinhood retirement, the first and only IRA with a built in match no employer necessary.

We're committed to providing faster and more money movement options, which we delivered with the launch of debit card funding.

<unk> withdrawals and support for U S D C and robinhood crypto and we committed to open up our crypto platform internationally, which we did with the launch of our non custodial robinhood wallet.

When we laid this out a year ago, we didn't anticipate a land war in Europe or inflation at a 40 year high prompt being one of the most aggressive tightening policies, we've ever seen from the fed.

This led to a sharp drawdown in growth stocks and a frigid crypto winter all of these factors presented extraordinary challenges for our customers and our company to navigate.

So nine months ago, we committed to returning to adjusted EBITDA profitability in Q4.

Was an aggressive goal and we delivered a quarter ahead of schedule by both lowering costs and increasing revenues. We also diversified our business as our net interest revenues more than doubled over the course of the year and to help customers generate more income in the new environment, We launched a revamped robinhood gold that offers customers.

Incredible for one 5% interest rate on their cash among the highest rates out there. We also strengthened our core business with a number of improvements to our trading products like options and cash accounts advanced charts and $24 seven live chat customer support we did all of this and more while having to make some <unk>.

<unk> decisions, we ended 2022 with about a third less head count than a year before.

Want to congratulate the team for their tremendous execution or product velocity has never been higher and the quality of talent at Robinhood has never been greater.

<unk>.

Before I review, our Q4 product roadmap I want to provide a couple of shareholder updates.

As founders.

Generate healthy returns for our shareholders. It took tremendous sacrifice on behalf of many people throughout 2022 to get robinhood to the healthy position we're in today.

And so at the end of the year basically and I were reflecting on this.

And we were thinking about whether there was more that we could do personally. So we decided we would cancel nearly $500 million of our combined share based compensation.

This lowers our GAAP operating costs by up to $50 million per quarter, starting in Q2, and it has already reduced our fully diluted share count by three 5%.

Over 6 billion of cash and feel very well positioned to execute on our growth plans. So we think this repurchase will be accretive over time.

And removes the distraction for shareholders since there isn't much precedent for situations like these we can't predict how long this will take but we will keep you posted as is appropriate.

Now I'll cover Q4 business results.

Now we've talked a lot about our product velocity and all of the new products, we launched last year.

First is stock lending, which we launched last may to help customers generate passive income by lending the stocks their holdings.

By the end of January we had over 1 million customers enrolled and we generated over $30 million in annualized revenue.

As we look ahead, we see lots of opportunities to improve the product, even more and make it even more accessible and useful to customers.

Next.

<unk> increased in Q4 for the first time in over a year and gold net promoter scores have moved way up. We've also seen gold cash sweep balances grew to $6 billion at the start at the end of January that's up by about 1 billion per month since the launch we're excited to keep investing in our gold offering and deepening these relationships this year.

Sure.

In Q4, we also launched instant withdrawals or new money movement option to help customers, who want faster access to their money for everyday needs at a competitive one 5% fee. We're seeing strong early adoption here growing from 1% of total withdrawals when we launched in October to 7% in January <unk>.

Leading to about $20 million of annualized revenue.

Or just a few examples of how the products we've launched over the past year are now gaining traction and we see a path for many of them to drive meaningful revenue growth from here.

Finally.

Sure.

Second is becoming the best destination for advanced customers.

Last year, we made a ton of progress by launching several new products and features that drove advanced customer NPS significantly higher a great sign for growth and retention.

This year, we will go beyond tools and improved experience and really innovate for our advanced customers. We're excited to show you what we have in store.

Third international.

We recently launched robinhood wallet, which empowers customers around the world to custody their own crypto.

We're getting more aggressive this year and have set a goal to offer brokerage services in the UK by the end of 2023 I'm also excited that we hired JV Mckenzie and industry veteran from Schwab and TD Ameritrade to lead our international brokerage efforts.

We're really excited about the year ahead. The roadmap is full and there's so much to do with that I will turn it over to Jason.

Thanks, glad it's good to speak with everyone today and.

In the fourth quarter, we stayed focused on serving customers growing our business and driving long term shareholder value.

Our team continued to deliver on our product roadmap and we generated positive adjusted EBITDA for the second quarter in a row.

I am proud of what we accomplished last year and look forward to 2023.

Before I discuss our Q4 results I want to provide context around the air that Vlad mentioned each quarter, we process hundreds of corporate actions as part of our day to day operations. In December we received notification of a corporate action that was irregular bolt and its timing and format and unfortunately I got through.

Our controls Cosmos Health, Inc. A NASDAQ listed company effected a one for 25 reverse stock split on December 16th a processing error caused us to sell share short into the market.

And although it was detected quickly it resulted in a loss of $57 million as we bought back these shares against a rising stock price.

While this event was an outlier as Vlad said, we're taking it very seriously and have made the necessary changes to do everything we can to ensure this won't happen again.

For monthly active users they were $11 4 million down 800000 from Q3, So meus increased back to roughly $12 million in January .

I'd also note that the vast majority of our customers continue to engage over time, even if they aren't active every month. For example, if we look at the last three months of 2020 to over 16 million unique customers were active and if we look over the last six months that.

That figure grows to over 20 million customers.

Turning to assets under custody, while they were $62 billion in Q4 down about 4% from last quarter. They rebounded to 75 billion in January as growth stocks in crypto recovered looking.

Looking at net deposits they were $4 8 billion in Q4, which translates to a 30% annualized growth for the quarter and brings the full year rate to 19%.

We're encouraged by the resiliency of customer net deposits, which positions us really well for growth as markets rise over time.

Going forward, we remain focused on delivering positive adjusted EBITDA and are driving attractive margins over time.

Looking at our GAAP results Q4, EPS was negative <unk> 19.

An improvement of <unk> <unk> from Q3. This included a combined negative <unk> <unk> impact from the processing error and an impairment charge on <unk> Q.

Q4, EPS prior to these impacts was negative 11.

Now, let's review our Q4 revenues total net revenues were $380 million, a 5% increase from Q3.

This was primarily driven by higher net interest revenues, partially offset by lower transaction revenues Q4, <unk> was $66 up from 63 last quarter.

Moving to net interest revenues they reached a new high of $167 million in Q4 up 30% from Q3.

$20 million from Q4.

Additionally, as we now appear to be in the later stages of the fed rate hiking cycle I wanted to note that we are exploring strategies to reduce our interest rate sensitivity and we'll keep you updated when we have more to share on this.

Yes.

Looking ahead to Q1, we expect other revenues to be similar to Q4 levels.

Looking a little farther ahead Q2 is proxy season, which drives the seasonal increase in revenue.

And late last year, we transferred our proxy services from a third party to our say technologies team. So in Q2, we expect to see a sequential increase of about $30 million from Q1 levels.

Now, let's look at Q4 expenses prior to SPC, the processing error and some minor carryover from our Q3 restructuring Opex was $319 million, which brought our full year total to $1 $5 5 billion.

These 22 2022 results were an 18% improvement versus the prior year as we moved to a leaner cost structure looking.

Looking forward to 2023, we're planning to improve our costs by another 7% on average as we plan to keep our costs lean while investing for future growth.

Our outlook for 2023 Opex prior to SBC as a range of $1 42 to one $4 8 billion.

I would note that on a quarterly basis. This outlook is about the same as the Q4 2022 range. We provided last quarter as I think this is a good zone to operate our business this year.

Turning to SPC it was $160 million in Q4, which brings our full year total to $654 million.

Looking ahead <unk> decision to cancel their 2021 pre IPO market based awards significantly lowers our outlook for the back half of this year.

Under accounting rules, we will record a Q1 noncash charge of about $485 million for the full acceleration of the canceled awards.

We also expect SBC this year, excluding the charge will be in a range of $470 million to $550 million, which is a 22% improvement on average from last year.

Including the charge our full year 2023, SPC outlook is a range of $955 million to 1.035 billion.

For Q1, we expect SBC of 615 to 645 million, mostly from the accounting charge.

Given our progress on costs over the past year and improved SPC outlook, we now expect to get much closer to positive GAAP net income in the back half of this year.

Beyond that we think it's a little early.

To predict a specific timeline for reaching GAAP profitability as our revenues vary with the market backdrop.

That said, we're focused on getting there by keeping our costs lean scrappy to drive operating leverage as our business grows while staying flexible to invest for the long term.

Now to capital management I wanted to touch on a couple of areas first on the Ziegler deal after careful consideration robinhood terminated the deal and we booked a $12 million charge in Q4.

While continuing to have a strong balance sheet to invest for growth.

As we look ahead, we see a large opportunity to grow shareholder value from here.

And with that Chris let's move to Q&A.

Thank you Jason.

And grouped together questions that share common theme after that we will turn to live questions from our analysts so I'll kick it off with some of our top questions from say.

So first.

John asks what is the product roadmap look like for 2023, but I do want to take that one yeah. Thank you as always sajan for for the good questions.

So I mentioned, a little bit in the call, while the macro environment might be.

Leading some companies to be less aggressive we plan to stay aggressive and there is there's three things that we're focused on in terms of product roadmap. The first thing deepening relationships with our existing customers and.

Particularly useful for gig economy workers and other freelancers. So we're going to continue to invest in that and grow that we think that.

Gives us.

Have a great entry point towards offering advisory services to customers.

Second.

Becoming the best place for advanced customers. So this is our customers that trade a little bit more actively use options engaging in equities trading.

Made a lot of progress this year, and we're working even harder to deliver innovative new.

And we're excited to welcome Jay <unk>, who will be leading the efforts to take our brokerage internationally.

Great Alright. Thank you Brad. The next question is from Jason our who asks.

We will rather had go global and allow users to buy individual shares from all over the world listed exchanges.

Sure happy to field that one so there is really two questions there.

First of all for our U S customers were very focused on expanding selection and being the best place for you to invest in trade.

In terms of access to foreign securities customers can trade Adr's today, VR platform Commission free and that gives investors exposure to foreign trade stocks.

The second thing expanding our operations internationally, so that customers based in other countries can access robinhood services.

A huge part of our mission, we think that we've done a lot of great work to open up access and to make investing more accessible to you.

People in the U S. U S is comparatively a mature market where access is is pretty good relative to some parts of the world. So we think it's a natural extension of our mission and a great business opportunity to take our technology and make it available overseas.

I talked about robinhood wallet, which is available globally and will allow customers all over the world to self custody have control over their crypto and trade and swap with no network fees.

On the brokerage side, we're being more aggressive and set a goal to start brokerage operations in the UK This year so.

Look out for that we're very very excited to make Robin hood available all over the world.

Awesome. Thanks, a lot alright the next.

Question comes from GC, who asks there is a new feature that was implemented by Twitter that directly links users to the revenue that.

What's the relationship between Robinhood and Twitter is there an official partnership forthcoming.

Yeah sure. Thank you.

Part of the part of the mission of Democratizing Finance for all is giving access to the best information.

Whenever and wherever our customers need it so we've been speaking to the folks over at Twitter for a while and heard about what they were doing with the stock pages in crypto pages on their platform and we got excited to create an investing experience that gives value to their customers.

<unk> makes it easier to deep link to the Robin Hood App, so you'll see us experimenting with more things like this over time.

As of now we don't have any plans to expand or form unofficial partnership with Twitter.

Alright. Thank you. Okay. So the next question is from William C.

What happens if the SEC bands payment for order flow.

Sure I'll field this one.

In terms of payment for order flow and the SEC market structure proposals.

We think investors have great right now the all in costs of investing the accessibility the tools and functionality.

Have never been better.

<unk>.

<unk> is right for our customers.

Alright. Thank you. The next question is.

Related so it asks for Marquis will robinhood become a member of the New York stock exchange and NASDAQ and reduces reliance in payment for order flow. We actually are already a member of NASDAQ we have a connection there and a portion of customer orders are routed there the wave that we.

Think about execution quality and routing orders as the routing is based on <unk>.

Execution quality.

Really the deciding factor so we aimed to send customer orders where theyre getting.

The best execution quality, and we actually publish execution quality statistics on on our website and we're very proud of it.

Alright. The next question is for Jason will robinhood ever worked with tax companies like turbotax to get tax information to clients at a faster pace.

Okay.

Thanks.

Already work with Turbotax and in fact customers get a $15 discount.

If they upload to turbotax.

We've been making a number of changes to the tax experience for customers. This year.

Consolidated the tax form for customers, who are trading both equities and crypto so they receive a single.

Tax form for Robin Hood, this year, which makes it a lot more convenient.

And also we're sending in a form that makes it really easy for customers to upload their data to the tax software of their of their choice and then also we've already sent well ahead of the deadline millions of these forms out to customers and should have the remaining ones out really soon so we're making a lot of progress for customers on the tax front and proud of the team.

For doing that.

Great. Thanks, Jason Alright, let's do one more before I open the call to analysts so vlad.

<unk> asks any thoughts on creating a robinhood pro apps with more advanced charts tools data and live streaming news feeds and chat rooms to keep them more advanced users staying strictly I'd rather hood.

Thanks Keith.

So we think serving our advanced customers is incredibly important as I outlined.

A bit earlier, it's one of the top three things we're working on this year, we made a lot of progress last year really improving the experience for them and we spend a lot of time talking to our advanced customers and what we're hearing is.

They stay with Robinhood and they love Robinhood, because we make things simple and are easy to use and they actually love the flexibility to be able to see a very simple overview of their portfolio and their holdings and be able to trade simply.

Along with the flexibility to dive into things like advanced charts and tools and features when they need to.

So right now we think we can deliver an awesome experience for advanced customers within the existing Robinhood app.

And so we're not necessarily going to be creating a separate app, but we.

We're focused on making robinhood the best tool for our advanced customers.

So with that I'll turn it till it timna teeth.

Thank you as a reminder to ask a question you will need to press star one one on your telephone please standby, while we compile the Q&A roster.

Our first question comes from the line of Devin Ryan of JMP Securities. Please proceed Devin.

Thanks, so much good afternoon.

Jason.

Hi, Devin first.

First question.

Obviously nice to see the acceleration into solidly positive adjusted EBITDA, which has been driven more by getting leaner on expenses and so.

The question is.

How do you want to manage the business over time as you kind of get to eventually this GAAP profitability is it.

Further expanding profitability from there or you are you then happy to kind of really lean in on your growth investments.

Thanks, Kevin This is Jason I'll take it and then Vlad can add in if he has additional color. We think theres a lot of leverage that we can achieve as we grow our business over time.

To continue to manage our costs to stay lean.

That said, we will have some flexibility to lean in a little bit more.

On investments that we think are the right ones to make.

But.

Yes, the only thing I would add is.

Last year was in terms of products one of the best years, we've had we've rolled out lots of new products to customers and as I mentioned earlier in the call to have.

Two of our recent products.

A relatively short amount of time.

Get to double digit millions in.

<unk>.

Sure.

In a year like 2022, we're incredibly proud of so stock lending as we mentioned getting to a $30 million run rate instant withdrawals.

Within a couple of months of launch getting to $20 million. So we have we have new businesses that we were able to rollout.

This year, we're in a great position to keep investing in and be aggressive.

Okay terrific follow up just on crypto, so customer engagement and crypto really saw some pressure after the ft X related contagion and obviously following valuations as well.

The year, we are seeing some improvement in valuations and so just curious from what you guys can track internally does it feel like customers, primarily just move to the sidelines versus exiting the space altogether and the interrelated how do those events in the fourth quarter effect, how youre thinking about just the crypto offering more broadly how you are budgeting for and developing the roadmap.

If at all thanks.

So Devin we have seen a pickup in the first part of the year to levels that are kind of on par with the average for for Q4. So I would say it was a bit of a.

Step on the sideline watch a little bit, particularly in the month of December but we're definitely encouraged.

With what we're seeing in the first part of the year and really into February .

We continue to think that crypto is here to stay.

And we're continuing to invest in this space and are really optimistic yes, you probably saw we recently launched a robinhood wallet, which really gives the power and utility of health custody to customers.

And we're continuing throughout the year to make improvements too.

Our core robinhood crypto offering as well.

Okay.

Got it okay terrific. Thanks, so much.

Thanks, Kevin.

Okay.

Thank you.

Our next question.

It comes from the line of will Nance of Goldman Sachs. Please go ahead will.

Hey, guys. Good evening I appreciate you taking the question.

I think you made some comments in the prepared remarks, along thinking about that level of asset sensitivity answers.

So as you can.

And his team to bring that down and I'm wondering if you could expand a little bolt on.

The things that Youre contemplating.

Maybe.

Framework for how you might approach it.

Yes, installation, where you think you could remain EBITDA breakeven or positive even if we see significant fall in interest rates over the last couple of years.

<unk>.

But really just wanted to signal to shareholders that it's something that we're paying attention to and we look forward to.

Implementing some strategies that will decrease the sensitivity that we have there. So we'll update you over time, but unfortunately, I, probably shouldn't get too far into the details I'd be getting ahead of myself.

Understood I appreciate that and then maybe a question for Vlad on M&A strategy Les.

Played out a handful of things in today's release international expansion.

More retirement I think you mentioned advisory I guess, just how are you thinking about the role of M&A.

Yes, Youre right will that.

We feel very confident in our ability to rollout products and sort of independently.

Build new features that serve our customers that said, it's not lost upon us that we have a large balance sheet in the environment now.

It's going to create some opportunities.

We have done M&A in the past, we're very deliberate about the opportunities that we're considering we consider things like.

Acceleration of our roadmap team quality and fit.

And we're proud of the M&A that we've done thus far.

Jason mentioned stay technologies, I think that team has integrated very well and is driving.

Considerable business impact in terms of revenue to Robin Hood, So big.

We've had a good deliberate approach and we do see opportunities with our balance sheet going forward.

Appreciate you taking my questions. Thank you.

Thanks Bill.

Thank you.

Our next question comes from the line of Steven <unk> of Wolfe Research. Your question. Please Stephen.

Hey, good afternoon.

So David.

<unk> better cost control.

And given that the rate sensitive revenues arguably close to peaking.

The expense guidance for full year, 'twenty, three implies modest growth well controlled but still growth versus that 422 exit rate.

It does feel like the path to profitability is almost exclusively contingent.

Yes. So the first part of your question is just.

What kind of levers we have an on cost.

2020 to Mark a big shift towards getting lean and mean productive I think theres more opportunity there.

We're feeling really good at the level that we're at we think it's a good level to operate in 2023.

But that said, there's always ways to be more efficient and I know the finance team the engineering team and others across the company are constantly looking for ways to optimize our costs and so.

So I wouldn't say, we're it's as low as we could possibly be right now and certainly about a third of the increase in our.

In our kind of run rate cost into 2023 are about pursuing new new growth initiatives in growing the business, which I think kind of.

It takes us into the second part of your question is what are we doing to drive growth.

You heard Vlad talk about all the initiatives that we rolled out last year and highlight a few of them that are starting to get some traction on a revenue basis.

And we're going to keep investing in key planting seeds.

<unk> just by improving the experience that we're offering on our existing businesses. If you take a fully paid securities lending for example, when we initially rolled that out we had.

To get more people to adopt to get more efficient and better tools in the hands of our trading desk.

And now we're running at a $30 million.

For improvement and I think when you when you add all that together it Lee.

Leads to revenue growth over time.

Lots of singles and doubles got it if I could just squeeze in one more just <unk> tack modeling question.

You mentioned, the reaffirm the dilution of 4% or less in 2023 in terms of share count does that contemplate any of the buybacks.

Our planned buybacks of the SPX founder shares and is there any appetite to initiate buybacks just given the improved EBITDA profitability that youre seeing.

Yes. Thanks for your question no it doesn't incorporate any anticipated repurchase of the emergent fidelity technology.

Sure. So so good clarification, there and in terms of kind of ongoing repurchases at this point, we're just focused on.

Buying the buying the shares that we had talked about and we'll save for later as we think about.

Capital management.

We really want to be investing in the business for growth, having flexibility to complement that organic growth through M&A, and then kind of as a third option in priority order would be thinking about returning.

Value to shareholders through things like repurchases. So so nothing to announce there and nothing to signal either.

Great color. Thanks, so much predicting my questions Jason.

Thank you. Thank you.

Thank you our next question.

It comes from the line of Richard Repetto of Piper Sandler Your question. Please Richard.

Yes, good evening glad.

I think Jason and team.

First congrats on the right.

Congrats on the right quickly right sizing the company last year. So I also wanted to thank you for given all the color on that.

I guess sort of a rebound in engagement in January and I guess two questions does that include we start.

Leveraging in the brokerage you saw your margin balances lots of assurance, but across the industry drop so our margin balances.

You gave us half the picture of the engagement I think a lot of people are wondering how profitable.

These flows are from retail investors.

Could you just sort of give us qualitatively.

I have a capture rates, what youre, making the spreads et cetera.

That determine the payment for order flow.

Have they improved as well in January .

Yes. So in terms of the margin book, we have seen it move up I wouldn't say it was a big move up in January but it has it has moved up slightly from the levels that we saw right at the end of the year in terms of the take rate on equity <unk> nothing's changed structurally there it moves with kind of the mix of.

Of what our customers are buying and selling.

As well as the level of spreads on the things that they are buying and selling.

So that's probably all the color early I have on the.

On the take rate.

Okay.

And my one follow up you've done a great job at diversifying the.

The revenues of the nuclear island, new product Rollouts. So.

Can you give us just given up I still think Thats Buffy a few more hikes come in.

So whats the sensitivity.

Jason to the.

To the.

Next fed rate hike.

Yes, so what we said for next quarter is that we think interest interest revenues will move up about $20 million versus what we saw in Q4.

We're providing a.

Schedule in our investor presentation that kind of lays out the $18 billion of interest earning assets. When do you expect is.

When those rates come that a good majority of that should flow through against those interest, earning assets offset by anything that we pass along to.

To our customers.

And in that regard, we look primarily at the gold cash sweep.

And our rate right now is 415 so.

The take rate there relative to the fed funds effective is roughly 50 basis points, we're giving over 400 basis points by comparison to our customers. So the vast majority.

Of that of that is going to customers and really when we think about pricing on that we just want to be at or near or kind of with the top of the market and comparable offerings, which we think we're doing a really good job and customers are seeing in reacting to.

Got it thank you very much.

Thank you.

Next question.

Comes from the line of Kenneth Worthington of JP Morgan Your line is open Kenneth.

Hi, good evening or afternoon. Thanks for taking the questions. So maybe first on the cash card you guys re launched it I wanted to follow up there.

How many of your cash management customers have transitioned to the new card and what is the number of sort of cash cards outstanding at this point I think at the last quarter. It was 500000 and then if it's possible can you give us any insight into the cash card customer in terms of like average number of transactions.

And average size of transactions.

Earlier in one of my responses to just Iterating and.

And improving our offering and so we're talking to customers, we're working on optimizing the onboarding flow and.

<unk> product market fit.

In terms of the update on the number of kind of card users. It's around 800000. So it's up a couple of hundred thousands since the last time that we.

Shared that with you.

And then.

There is all of that 800000, there is a.

It's early and we will continue to update you as we make progress there.

Yes, the only thing that I would add is.

Like we said with stock lending.

Post launch we made a ton of improvements to the product in the funnel and we're really proud of the work that we continue to do there with the cash card.

The same story, we've got a great team on it the roadmap is full there is a lot of exciting things coming so we're very excited about.

How much that product will will improve in the near future.

Okay, great. Thank you and then trading volumes have been resilient and options relative to the other asset classes.

What is the experience your clients are having in options like can you tell are they making money and options as your experience getting better over time and if they are making money and optioned why do you think the experience is better there than in equities in crypto.

Well one of the things we've been really looking at is the net promoter score the retention characteristics.

Our options product.

In a relatively short amount of time.

<unk> innovative options features with a lot more coming this year. So really the options team has been firing on all cylinders, we're really happy with kind of a relative market share, especially.

Especially in the light of overall sort of decline in volumes industry wide and I think there is there is a lot more to do but a lot of it comes down to just us relentlessly improving the product and I'm very proud of of the work. The team has done there and it's been a it's been as you know Ken just a really challenging macro environment.

<unk> not just for our customers, but for for all market participants frankly over the last year or so and Thats. One of the reasons why we're really excited about being able to offer over 4% yield on the gold.

Cash sweep program.

Introducing retirement, which is going to help customers just kind of systematically.

Dollar cost average over a long period of time to reach their goals and so really you're going to see robinhood evolve.

Its platform, so that no matter, how customers want to trade Robyn and it'll be the place to do it and so.

It's a long term strategy for us, but we're making progress there.

Great. Thank you very much.

Thanks, Ken I appreciate the question.

Thank you our next.

<unk>.

Comes from the line of Michael Cyprus of Morgan Stanley . Your question. Please Michael.

Hey, good evening. Good afternoon. Thanks for taking the question, maybe just coming back to your earlier point around innovating for advanced customers I was hoping you could maybe elaborate a bit on what additional functionality could be helpful. Thats not offer today and to that point, we see tremendous growth in index options, including some of the smaller sized index options.

Yes, I do not believe they are available on the robinhood.

Robin Hood customers. So just curious how you think about the opportunity there what hurdles could there be for adding index options I understand there are a bit different in that they are cash settled as opposed to net share settle so how much of a platform built for that.

Require and how does that stack up on the priorities robinhood here in 'twenty three.

Thanks for the question I'll field that one.

I don't want to let the cat out of the bag too early I think we've got some really exciting things.

And in store certainly, we're looking at new assets and new features and J B and Steve Quirk.

Awesome team there they.

We're putting a great team together they care a lot about advanced customers.

Really done wonderful things in the past with thinker.

Stinker swim and TD, which which really.

Innovated for advanced customers and I think.

I think we've got another year, we can go here at Robinhood, so stay tuned.

Any comment on the index option side is that something you guys are interested in or not not of interest to your customer set.

I think index options are interesting again, I shouldnt comment on any specific assets, but we are certainly looking at everything.

Great if I could just ask a follow up question on the expense side you guys have made tremendous progress on bringing down the pace.

If I just look at 'twenty three it looks like the guidance is a little bit of a growth relative to the fourth quarter run rate. So just hoping maybe you could unpack some of the moving pieces that are driving expense growth from fourth quarter levels and maybe you could comment on that head count growth inflationary pressures, how that's all impacting it versus not.

Yes, so very very modest head count growth, we had a number of open positions at the end of the year.

Adding to fill those and then very very modest.

Incremental growth on top of that primarily for funding investments in growth. If you think about the run rate for Q4.

Excluding share based compensation that gets you to roughly $1 3 billion and then our guidance was 142 billion to <unk> four 8 billion for the year.

So to unpack that a bit there's really three categories of incremental growth versus the run rate from the fourth quarter.

Each of them represent a roughly a third so a third a third and a third for the following categories. The first is just kind of first you got a normalized Q4 spend for things like seasonality as well as.

Q4's run rate the second is just existing business growth continuing to.

Deliver and improve on the existing products that we have it includes things like merit increases for employee compensation that happens regularly.

On an annual basis pull through of expenses that started kind of late in the year and you get the full year effect.

And then the third category also as I mentioned roughly a third of the incremental is just investing for new business growth and so that really bridges.

The baseline to the guidance.

Great. Thank you very much.

Thank you.

Our next question comes from the line of Benjamin Boutiques of Barclays. Your line is open Benjamin.

Hi, Thanks, so much.

Hey, guys. Thanks, so much for taking the question I wanted to ask about the UK launch I understand that its targeted for the end of the year, but.

We sort of understood that <unk> was expected to be a little bit of a launching off point and what that deal no longer happening. If you could share any thoughts on kind of your go to market strategy or are you thinking about leading more with the Robin Hood wallet and kind of how do you think about the competitive environment over there.

Yeah happy to field that so the Robin Hood wallet is global by default, it's a self custodial web three wallet that offers.

Trading and swapping with with no network fees.

That we're very excited about.

App from the main Robinhood, App, which offers brokerage services and the goal for this year will be getting brokerage services live in the UK by the end of the year.

Okay, great. Thanks, so much if I could sneak one in as well.

Just on your net interest revenue.

You beat your own kind of guidance pretty nicely in the quarter I guess, where are you sort of the most surprised and if we're thinking about the first quarter, where would you expect that.

Sure.

Similar outperformance.

Do you think that would be most likely to come from.

Thanks.

I don't want to predict where the outperformance might come in the following quarter.

Certainly it's sensitive to the interest earning assets that we carry movements in.

And things like the margin book could definitely be a lever.

Outperformance in securities lending would be another area that.

That might surprise.

In in Q4, we did outperform our expectations.

That mostly to just.

Nice asset nice asset growth and a little bit better on deposit betas than we had forecast into the model.

Okay, great. Thank you so much.

Thanks, Dan.

Yes.

Thank you.

Our next question comes from the line of Alex Mark Graf of Keybanc capital markets. Your question. Please Alex.

Hey, glad Hey, Jason.

A couple of questions I, just wanted to jump back to I guess first Robin Hood wallet.

Just wanted to understand how you feel about the completeness of the offering at this point and kind of parity versus global peers in a wallet side.

And then just any sort of planned marketing initiatives in international markets for 'twenty three to keep in mind.

Yes on the wallet side.

I think the core functionality is in place and we're getting great feedback from.

Customers there are a bunch of things that we're looking to add to make it even better and the roadmap for that team is pretty full.

<unk> been there.

<unk> been executing pretty relentlessly so kudos to the wallet team for that.

And then.

I'm sorry, you had a question about international beyond that.

A national marketing marketing, yes.

It's really early for for US of course, we're open to doing marketing in the future, but right now we're focused on.

Pulling out the product and getting as much feedback from the users on the waitlist as possible.

Awesome and then just on UK brokerage I guess, maybe just to expand on the earlier question.

I mean, what are some kind of key operational milestones that we should be thinking of as you look to launch that by year end.

Yes, it's mainly just making sure the technology is.

In really good shape, and we adhere to all the different requirements for the UK market, making the experience seamless with.

The forex money conversions, and things like that and talking to customers and making sure that.

We do any UK specific adaptations that that we think will make the product as useful as possible for them, but we think we have a great Foundation.

We've made really big improvements in our infrastructure and technology over the past couple of years.

Scaling we don't anticipate will be a problem, it's more about just getting the user experience.

And getting getting everything setup there okay.

So this is Jason.

We're hearing from our PR team that one of the news outlets is.

As incorrectly reporting that Robin Hood is effecting a split on our on our stock I just want to be Super clear that that is that is not.

Any plan that we have it's not.

It's not accurate factually accurate and so.

For all those listening if you can spread that correct news that would be that'd be fantastic. Thank you.

We don't have any more questions.

I would now like to turn the conference back to <unk> for closing remarks.

Thank you everyone really appreciate the questions.

We will see you all next quarter some of you sooner.

Thanks, everyone.

Thank you. This concludes today's conference call. Please disconnect your lines at this time.

Q4 2022 Robinhood Markets Inc Earnings Call

Request a DemoDemo

HOOD

Robinhood

Earnings