Q1 2024 Robinhood Markets Inc Earnings Call

May 8, 2024

are in listening only mode

After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you would need to press star 1-1 on your telephone. You would then hear an automated message advising your hand is raised. We ask that you limit yourself to one question.

To withdraw your question, please press 1-1 again.

I will now like to turn the call over to Chris Cagle, VP of Corporate FPNA and Investor Relations. You may begin.

Thank you, Juanda, and thank you everyone for joining Robin Hood's Q1 Earnings Call. With us today, our CEO and co-founder, Vlad Tenev, CFO , Jason Warnick.

Before getting started, I want to remind you that today's call will contain forward-looking statements. Actual results could differ materially from our expectations,

Operator: Hello, and welcome to Robinhood's first quarter 2024 earnings conference call. At this time, all participants are in a listening-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand. We ask that you limit yourself to one question, or withdraw your question. Please press star 11 again.

Hello, and welcome to Robin Robin Hood first quarter 'twenty 'twenty four earnings conference call.

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 the press release we issued today, the earnings presentation, and our SEC filings, all of which can be found at investors.robinhood.com.

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

Operator: After the speaker's presentation, there will be a question and answer session.

Operator: Ask a question during this session you will need to press star one on your telephone.

Operator: You would then in here our automated message advising your hand is raised we ask that you limit yourself to one question.

Today's discussion will also include non- GAAP financial measures. Reconciliation to the gap results we consider most comparable can be found in the earnings presentation. With that, let me turn it over to Vlad.

Operator: To withdraw your question. Please press star one again.

Chris Koegel: I would now like to turn the call over to Chris Koegel, VP of Corporate FP&A and Investor Relations. You may begin. Thank you, Jawanda, and thank you, everyone, for joining Robinhood's Q1 earnings call. With us today are CEO and co-founder, Vlad Tenev, and CFO, Jason Warnick. Before getting started, I want to remind you that today's call will contain forward-looking statements. The actual results could differ materially from our expectations, and we have no duty to provide updates unless legally required.

Operator: I would now like to turn the call over to Chris Cagle VP of corporate F. P. N E and Investor Relations you may begin.

Thanks, Chris. Hi, everyone. I again will keep my remarks short so that we can have plenty of time for questions.

Chris Koegel: Potential risk factors that could cause differences, including regulatory developments that we continue to monitor, are described in the press release we issued today, the earnings presentation, and our SEC filings, all of which can be found at investors.robinhood.com. Today's discussion will also include non-GAAP financial measures. Reconciliations to the GAAP results we consider most comparable can be found in the earnings presentation.

Chris Koegel: Thank you Linda and thank you everyone for joining Robinson Q1 earnings call with US today, our CEO and co founder Brian tenants CFO, Jason Warnecke.

So just to remind everyone, Robin Hood is focused on three things.

Number one, winning the active trader market. Number two, increasing wallet share with our customers. And number three, expanding internationally. We believe the strategy is working, and it led to strong business outcomes in Q1.

Chris Koegel: Before getting started I want to remind you that today's call will contain forward looking statements actual results could differ materially from our expectations.

Chris Koegel: 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 the press release, we issued today the earnings presentation and our SEC filings.

First, retail trading market share.

It can continue to increase in Q1, and it was really bolstered by our product innovation. As a result, year-over-year notional trading volumes were up significantly across equities, options, and crypto.

Chris Koegel: All of which can be found at investors that Robin Hood Dot com.

Chris Koegel: Today's discussion will also include non-GAAP financial measures reconciliations to the GAAP results. We consider most comparable can be found in the earnings presentation with that let me turn it over but thanks.

Net deposits, they were a record 11.2 billion with strong diversity across brokerage, cash sweep, and retirement.

Vladimir Tenev: With that, let me turn it over to Vlad. Thanks, Chris. Hi, everyone. I will again keep my remarks short so that we can have plenty of time for questions. So, just to remind everyone, Robinhood is focused on three things. Number one, winning the active trader market. Number two, increasing wallet share with our customers. And number three, expanding internationally.

This translates to a 44% annualized organic growth rate and continues our multi-year track record of delivering 20% plus net deposit growth.

Vlad: Thanks, Chris.

Vladimir Tenev: Everyone.

Vlad: Again, we will keep my remarks short so that we can have plenty of time for questions.

Vlad: So just to remind everyone robinhood is focused on three things.

And customers are also moving their assets to Robin Hood in record numbers.

Vladimir Tenev: One within the active trader market.

Q1 was the second quarter in a row. We had net asset inflows from every other major brokerage, totaling nearly $3 billion more than twice our Q4 level.

Vlad: Two increasing wallet share with our customers and number three expanding internationally.

Vladimir Tenev: We believe the strategy is working, and it led to strong business outcomes in Q1. First, Retail Trading Market Share. It can continue to increase in Q1, and it was really bolstered by our product innovation. As a result, year-over-year notional trading volumes were up significantly across equities, options, and crypto. Net deposits were a record $11.2 billion with strong diversity across brokerage, cash sweep, and retirement.

Vlad: We believe the strategy is working and it led to strong business outcomes in Q1.

I also wanted to highlight gold subscribers

Vladimir Tenev: First retail market retail trading market share.

Customers are finding our gold offerings compelling across high-yield cash, retirement, margin rates, and now our gold credit card. This led gold subscribers to reach 1.7 million in Q1, higher than at any other point in our history.

Vladimir Tenev: It can continue to increase in Q1, and it was really bolstered by our product innovation as a result year over year notional trading volumes were up significantly across equities options and crypto.

Vladimir Tenev: Net deposits they were a record $11 2 billion with strong diversity across brokerage cash sweep and retirement.

The 260,000 gold subscribers we added in Q1 was the fastest in the past three years.

Vladimir Tenev: This translates to a 44% annualized organic growth rate and continues our multi-year track record of delivering 20% plus net deposit growth. And customers are also moving their assets to Robinhood in record numbers. Q1 was the second quarter in a row we had net asset inflows from every other major brokerage, totaling nearly $3 billion, more than twice our Q4 level. I also wanted to highlight our gold subscribers. Customers are finding our gold offerings compelling across high-yield cash, retirement, margin rates, and now our gold credit card. This led gold subscribers to reach 1.7 million in Q1, higher than at any other point in our history. The 260,000 gold subscribers we added in Q1 were the fastest in the past three years.

Vladimir Tenev: This translates to a 44% annualized organic growth rate and continues our multi year track record of delivering 20% plus net deposit growth.

It's also exciting to see that nearly 20% of new funded customers in Q1 subscribe to gold, and that's more than double a year ago.

Putting this all together with continued expense discipline led to record revenues of 40% year over year and record gap EPS of positive 18 cents.

Vladimir Tenev: And customers are also moving their assets to robinhood and record numbers.

Vladimir Tenev: Q1 was the second quarter in a row, we had net asset inflows from every other major brokerage totaling nearly $3 billion more than twice our Q4 level.

Now, what's even more exciting is that we continue to deliver amazing value to customers. And before I share more about what we're doing for our gold customers, let's have Jason review our financial results.

Vladimir Tenev: Also wanted to highlight gold subscribers customers are finding our gold offerings compelling across high yield cash retirement margin rates and now our gold credit card. This slide gold subscribers reached $1 7 million in Q1 higher than at any other point in our history.

Thanks, Vlad. It's good to speak with everyone today. As a reminder, last year we drove significant profitable growth, with revenue up 37 percent and adjusted EBITDA margins expanding by 36 points.

Vladimir Tenev: The 260000 gold subscribers, we added in Q1 was the fastest in the past three years.

In 2024, we're focused on driving another year of profitable growth, and we had a strong Q1 with 40% year-over-year revenue growth and 14 points of margin expansion from a year ago.

Vladimir Tenev: It's also exciting to see that nearly 20% of new funded customers in Q1 subscribe to gold, and that's more than double a year ago. Putting this all together with continued expense discipline led to record revenues of 40% year-over-year and record gap EPS of positive 18 cents. Now, what's even more exciting is that we continue to deliver amazing value to customers. And before I share more about what we're doing for our gold customers, I'll have Jason review our financial results. Thanks, Vlad.

Vladimir Tenev: It's also exciting to see that nearly 20% of new funded customers in Q1 subscribed to gold and thats more than double a year ago.

We also set records in Q1 for quarterly revenues, adjusted EBIDA, adjusted EBITA margin, net income, and GAAP EPS.

Vladimir Tenev: Putting this all together with continued expense discipline led to record revenues up 40% year over year and record GAAP EPS of positive 18.

Looking more closely at our Q1 results compared to a year ago, total net revenues grew 40% to 618 million, adjusted EBITDA more than doubled to 247 million,

Vladimir Tenev: Now, what's even more exciting is that we continue to deliver amazing value to customers and before I share more about what we're doing for our gold customers.

Vladimir Tenev: Let's ask Jason to review our financial results.

incremental margins were 75% demonstrating the scalability of our cost structure, even while we increased marketing and growth investments.

Jason Warnick: It's good to speak with everyone today. As a reminder, last year we drove significant profitable growth with revenue up 37% and adjusted EBITDA margins expanding by 36 points. In 2024, we're focused on driving another year of profitable growth, and we had a strong Q1 with 40% year-over-year revenue growth and 14 points of margin expansion from a year ago. We also set records in Q1 for quarterly revenues, adjusted EBITDA, adjusted EBITDA margin, net income, and GAAP EPS.

Jason: Thanks flat, it's good to speak with everyone today.

Jason Warnick: As a reminder, last year, we drove significant profitable growth with revenue up 37% and adjusted EBITDA margins expanding by 36 points.

and adjusted IBA margins expanded by 14 points to 40% as we make progress over time towards the 50% plus levels we see from incumbents.

Jason Warnick: In 2024, we're focused on driving another year of profitable growth and we had a strong Q1 with 40% year over year revenue growth and 14 points of margin expansion from a year ago.

All of this led to net income of 157 million, or 18 cents of EPS.

Jason Warnick: We also set records in Q1 for quarterly revenues adjusted EBITDA adjusted EBITDA margin net income and GAAP EPS.

We're pleased with our results in Q1, and we aim to continue delivering profitable growth in 2024.

Now let's move to our first quarter business results.

Jason Warnick: Looking more closely at our Q1 results compared to a year ago, total net revenues grew 40% to $618 million. Adjusted EBITDA more than doubled to $247 million, and incremental margins were 75%, demonstrating the scalability of our cost structure, even while we increased marketing and growth investment. And adjusted EBITDA margins expanded by 14 points to 40% as we make progress over time towards the 50% plus levels we see from incumbents. All of this led to a net income of $157 million, or $0.18 of EPF.

Assets under custody finished Q1 at around, at a record, $130 billion, up 65% year over year.

Jason Warnick: Looking more closely at our Q1 results compared to a year ago total net revenues grew 40% to $618 million.

Jason Warnick: Adjusted EBITDA more than doubled to $247 million in.

A key driver of that asset growth was strong Q1 net deposits of over 11 billion, which is more than double last year's quarterly average and translates to a 44% annualized growth rate.

Jason Warnick: Incremental margins were 75% demonstrating the scalability of our cost structure.

Jason Warnick: Even while we increased marketing and growth investments.

We're encouraged by the breadth and durability of Q1 net deposits, so let me share a little more color.

Jason Warnick: And adjusted EBITDA margins expanded by 14 points to 40% as we make progress over time towards the 50% plus levels, we see from incumbents.

First, we saw strong participation from both existing and new customers, with about 75% of net deposits coming from customers who've been at Robin Hood for over a year.

Jason Warnick: All of this led to net income of $157 million or <unk> 18 of.

Jason Warnick: EPS were.

Second, we saw a nice mix of continued strong contributions from customers and wins versus brokerage incumbents. The mix was about 75% contributions from customers and 25% net wins from incumbents.

Jason Warnick: We're pleased with our results in Q1, and we aim to continue delivering profitable growth in 2024. Now, let's move to our first quarter business results. Assets under custody finished Q1 at around $130 billion, up 65% year over year.

Jason Warnick: We're pleased with our results in Q1, and we aim to continue delivering profitable growth in 2024.

Jason Warnick: Now, let's move to our first quarter business results assets under custody finished Q1 at around at a record $130 billion up 65% year over year.

And third, deposits into our platform were balanced across product categories.

Jason Warnick: A key driver of that asset growth was strong Q1 net deposits of over $11 billion, which is more than double last year's quarterly average and translates to a 44% annualized growth rate. Banks are encouraged by the breadth and durability of Q1 net deposits, so let me share a little more color. First, we saw strong participation from both existing and new customers, with about 75% of net deposits coming from customers who've been at Robinhood for over a year. Second, we saw a nice mix of continued strong contributions from customers and wins versus brokerage incumbents. The mix was about 75% contributions from customers and 25% net wins from incumbents.

A little more than half of Q1 net deposits went to brokerage, another quarter went to cash sweep, and the last 20% to retirement. So overall, we're really pleased with the diversity of net deposits as customers engaged with us across our platform.

Jason Warnick: We're encouraged by the breadth and durability of Q1 net deposits. So let me share a little more color.

Looking at Q2, so far it's off to a good start as well, as April was our highest month of the year for net deposits with nearly $5 billion.

Jason Warnick: First we saw strong participation from both existing and new customers with about 75% of net deposits coming from customers who've been at robinhood for over a year.

And with our continued progress in early May, we've already brought in more net deposits year to date than the $17 billion we did in all of 2023.

Jason Warnick: Second we saw a nice mix of continued strong contributions from customers and wins versus brokerage incumbents. The mix was about 75% contributions from customers and 25% net wins from incumbents.

with most of the year still in front of us.

We're also delivering growth in Robin Hood Gold. As a reminder of how gold subscribers on average, compared to our customers overall, in Q1, gold subscribers had eight times the average with an average of over $40,000.

Jason Warnick: And third, deposits into our platform were balanced across product categories. A little more than half of Q1 net deposits went to brokerage, another quarter went to cash sweep, and the last 20% went to retirement. So overall, we're really pleased with the diversity of MetDeposits as customers engage with us across our platform. Looking at Q2, so far, it's off to a good start as well, as April was our highest month of the year for net deposits with nearly $5 billion.

Jason Warnick: And third deposits into our platform were balanced across product categories, a little more than half of Q1 net deposits went to brokerage another quarter went to cash sweep in the last 20% to retirement.

grew net deposits roughly twice as fast, and had five times the retirement account adoption.

Jason Warnick: So overall, we're really pleased with the diversity of net deposits as customers engage with us across our platform.

Gold Arpoo is also multiples of our average customer, which includes annualized recurring subscription revenue approaching 100 million.

Jason Warnick: Looking at Q2, so far it's off to a good start as well as April was our highest month of the year for net deposits with nearly $5 billion.

And in Q1, we grew gold subscribers to 1.7 million, up 42% or 500,000 from last year.

Jason Warnick: With our continued progress in early May, we've already brought in more net deposits year to date than the $17 billion we did in all of 2023, with most of the year still in front of us. We're also delivering growth in Robinhood Gold. As a reminder of how gold subscribers on average compared to our customers overall, in Q1, gold subscribers had eight times the..., with an average of over $40,000, grew net deposits roughly twice as fast, and had five times the retirement account adoption.

Jason Warnick: And with our continued progress in early May we've already brought in more net deposits year to date than the $17 billion. We did in all of 2023.

This momentum has continued into Q2 as we added another 140,000 gold subscribers in April , more than half of our Q1 growth.

Jason Warnick: With most of the year still in front of us.

Jason Warnick: We're also delivering growth and robinhood gold as a reminder of how gold subscribers on average compared to our customers' overall in Q1 gold subscribers had eight times the app.

Let's now turn to our financial results.

In the first quarter, we generated net income of $157 million, up 5x sequentially, as we grew revenues and state disciplined on expenses.

Jason Warnick: On an average of over $40000.

Looking at Q1 revenues, transaction-based revenues increased sequentially across equities, options, and crypto, and net interest revenues grew as a result of higher balances and securities lending activity,

Jason Warnick: Grew net deposits roughly twice as fast and had five times the retirement account adoption.

Jason Warnick: Gold ARPU is also multiples of our average customer, which includes annualized recurring subscription revenue approaching $100 million. And in Q1, we grew gold subscribers to 1.7 million, up 42%, or 500,000 from last year. This momentum has continued into Q2, as we added another 140,000 gold subscribers in April, more than half of our Q1 growth. Let's now turn to our financial results. In the first quarter, we generated net income of $157 million, up 5x sequentially, as we grew revenues and stayed disciplined on expenses.

Jason Warnick: Goal <unk> is also a multiples of our average customer which includes the annualized recurring subscription revenue approaching $100 million.

So far in Q2, we've continued to see robust trading.

In April , equity notional volumes were about $70 billion. Options contracts were a monthly record of roughly $125 million.

Jason Warnick: And in Q1, we grew gold subscribers to $1 7 million up 42% or 500000 from last year.

Jason Warnick: This momentum has continued into Q2 as we added another 140000 gold subscribers in April more than half of our Q1 growth.

and crypto notional volumes were around 10 billion.

Now let's turn to first quarter expenses.

Combined, adjusted off-ex, and SBC was 460 million in Q1, as we stayed discipline on expenses, even as we increased investments in marketing and growth.

Jason Warnick: Let's now turn to our financial results.

Jason Warnick: The first quarter, we generated net income of $157 million up five X sequentially as we grew revenues and stayed disciplined on expenses.

Looking ahead, while the year is off to a strong start, we know it's important to stay disciplined on expenses, so our full year, adjusted OPEX and SBC outlook is unchanged in the range of 1.85 to 1.95 billion.

Jason Warnick: Looking at Q1 revenue, transaction-based revenues increased sequentially across equities, options, and crypto, and net interest revenues grew as a result of higher balances and securities lending activity. So far in Q2, we've continued to see robust trading. In April, equity notional volumes were about $70 billion.

Jason Warnick: Looking at Q1 revenues transaction based revenues increased sequentially across equities options and crypto.

Jason Warnick: Our net interest revenues grew as a result of higher balances and securities lending activity.

Before I pass the call back to Vlad, I want to share some perspectives about our opportunity to drive profitable growth in 2024 in the years to come by growing revenues and expanding margins.

Jason Warnick: So far in Q2, we've continued to see robust trading and.

Jason Warnick: In April equity notional volumes were about 70 billion.

Jason Warnick: Options contracts were a monthly record of roughly $125 million, and crypto Notional volumes were around $10 billion. Now let's turn to first quarter expenses. Combined adjusted OPEX and SBC was $460 million in Q1, as we stayed disciplined on expenses even as we increased investments in marketing and growth. Looking ahead, while the year is off to a strong start, we know it's important to stay disciplined on expenses. So our full-year adjusted OPEX and SBC outlook is unchanged in the range of 1.85 to 1.95 billion.

Jason Warnick: Options contracts, where a monthly record of roughly $125 million.

First, we believe we can continue our multi-year track record of delivering 20% plus net deposit growth rates, supported by a young customer-based gaining share of global wealth, share gains in existing markets, and expansion into new markets and product categories that give us more opportunity for growth.

Jason Warnick: And crypto notional volumes were around $10 billion.

Jason Warnick: Now, let's turn to first quarter expenses.

Jason Warnick: Bind adjusted Opex at SBC was $460 million in Q1, as we stayed disciplined on expenses, even as we increased investments in marketing and growth.

Second, as customer assets grow over time, we believe this will drive strong revenue growth as well. We're naturally hedged between interest rates and trading, and we continue to diversify our business as we introduce new products and enter new markets.

Jason Warnick: Looking ahead, while the year is off to a strong start we know it's important to stay disciplined on expenses. So our full year adjusted Opex and SPC outlook is unchanged in the range of $1 85 to $1 95 billion.

And third, we're a technology company and a highly scalable platform with about 90% fixed costs. So as our revenues increase, we believe we can drive significant margin expansion and free cash flow.

Jason Warnick: Before I pass the call back to Vlad, I want to share some thoughts about our opportunity to drive profitable growth in 2024 and the years to come by growing revenues and expanding margins. First, we believe we can continue our multi-year track record of delivering 20% plus net deposit growth rates, supported by a young customer base gaining a share of global wealth, share gains in existing markets, and expansion into new markets and product categories that give us more opportunities for growth. Second, as customer assets grow over time, we believe this will drive strong revenue growth as well.

Jason Warnick: Before I pass the call back to flat I want to share some perspectives about our opportunity to drive profitable growth in 2024, and the years to come by growing revenues and expanding margins.

Jason Warnick: We're naturally hedged between interest rates and trading, and we continue to diversify our business as we introduce new products and enter new markets. And third, we're a technology company and a highly scalable platform with about 90% fixed costs. So as our revenues increase, we believe we can drive significant margin expansion and free cash flow. In closing, we had a strong Q1. And we have a lot of momentum to start the second quarter. We remain focused on driving profitable growth for shareholders as we work to maximize EPS and free cash flow per share in 2024 and the years to come. Now I'll turn the call back to Blythe.

In closing, we had a strong Q1, and we have a lot of momentum to start the second quarter.

Blythe: First we believe we can continue our multiyear track record of delivering 20% plus net deposit growth rates supported by a young customer base gaining share of global wealth share gains in existing markets and expansion into new markets and product categories that give us more opportunity for growth.

We remain focused on driving profitable growth for shareholders.

as we work to maximize EPS and free cash flow per share in 2024 and the years to come.

Now I'll turn the call back to Blat.

Thanks, Jason. As I said earlier, the second part of our strategy is increasing wallet share with customers, including growing Robin Hood Gold subscriptions, which hit an all-time high of $1.7 million in Q1.

Blythe: Second as customer assets grow over time, we believe this will drive strong revenue growth as well.

Blythe: We're naturally hedged between interest rates and trading and we continue to diversify our business as we introduce new products and enter new markets and.

In March, we held Robin Hood's first ever keynote event to introduce even more value that we're providing gold customers

Blythe: And third we're a technology company.

including an all-new customizable app experience, a 1% unlimited deposit boost for gold customers that's launching soon, and a brand new Robin Hood Gold credit card with 3% back on all purchases.

Jason Warnick: Highly scalable platform with about 90% fixed costs. So as our revenues increase we believe we can drive significant margin expansion and free cash flow.

Blythe: In closing we had a strong Q1.

We're seeing lots of commentary about how amazing of a deal gold is, and we're happy customers are recognizing that and starting to spread the word. Over 1 million people have signed up for the gold card wait list, only half of which are gold subscribers today. So we believe we can substantially grow gold adoption as we roll out the card.

Blythe: And we have a lot of momentum to start the second quarter.

Blythe: We remain focused on driving profitable growth for shareholders as we work to maximize EPS and free cash flow per share in 2024, and the years to come now.

Blythe: Now I'll turn the call back to flat.

We love seeing the progress we're making, attracting, retaining, and expanding gold customer relationships on the journey to be the most trusted lowest cost and most culturally relevant money app worldwide.

Vladimir Tenev: Thanks, Jason. As I said earlier, the second part of our strategy is increasing wallet share with customers, including growing Robinhood Gold subscriptions, which hit an all-time high of $1.7 million in Q1. In March, we held Robinhood's first-ever keynote event to introduce even more value that we're providing Gold customers, including an all-new customizable app experience, a 1% unlimited deposit boost for Gold customers that's launching soon, and a brand-new Robinhood Gold credit card with 3% back on all purchases.

Blythe: Jason as I said earlier, the second part of our strategy is increasing wallet share with customers, including growing robinhood gold subscriptions, which hit an all time high of $1 7 million in Q1 in March we held robinhood its first ever keynote event to introduce even more value that we're providing gold customers, including.

I want to thank our customers for continuing to trust and advocate for the platform as we make progress on our mission to democratize finance for all. The business is in a great position because of you, and we're just getting started. And you should know our team has been working incredibly hard to deliver even more value to you. The roadmap is full. There's so much to do. And now, let's move on to questions.

Vladimir Tenev: <unk>, an all new customizable app experienced a 1% unlimited deposit boost for gold customers Thats launching soon and a brand new robinhood gold credit card with 3% back on all purchases.

Vladimir Tenev: We're seeing lots of commentary about how amazing of a deal Gold is, and we're happy customers are recognizing that and starting to spread the word. Over 1 million people have signed up for the Gold card waitlist, only half of which are Gold subscribers today.

Vladimir Tenev: We're seeing lots of commentary about how amazing of a deal gold is and we're happy customers are recognizing that and starting to spread the word over 1 million people have signed up for the gold card waitlist only half of which are gold subscribers. Today. So we believe we can substantially grow gold adoption as we rollout the card.

All right. Thank you, Vlad. For the Q&A session, we'll start by answering the top few shareholder questions from say technologies, ranked by a number of votes.

We passed over questions that we had already addressed on this call or in prior quarters and grouped together questions that shared a common team. After the say questions, we'll turn to live questions from our analysts.

Vladimir Tenev: So we believe we can substantially grow Gold adoption as we roll out the card. We love seeing the progress we're making attracting, retaining, and expanding gold customer relationships on the journey to be the most trusted, lowest cost, and most culturally relevant money app worldwide. I want to thank our customers for continuing to trust and advocate for the platform as we make progress on our mission to democratize finance for all. The business is in a great position because of you, and we're just getting started. And you should know our team has been working incredibly hard to deliver even more value to you. The roadmap is full. There's so much to do.

Vladimir Tenev: We love seeing the progress, we're making attracting retaining and expanding gold customer relationships on the journey to be the most trusted lowest cost and most culturally relevant money app worldwide.

So we'll kick it off with our first question from Say.

Alexander M asks, what impact will the SEC Wells notice have on the business? Jason, do you want to start on that one? Yeah, I'll maybe start and then Vlad can add some thoughts. First, for our customers, your accounts are not affected by this. It's business as usual for Robin and Crypto.

Vladimir Tenev: I want to thank our customers for continuing to trust an advocate for the platform as we make progress on our mission to Democratize finance for all the business is in a great position because of you and we're just getting started and you should know our team has been working incredibly hard to deliver even more value to you. The roadmap is full there is so much to do.

We're of course disappointed to have received the notice. As you know, we've operated our crypto business in good faith.

We've been very conservative in our approach in terms of coins listed and services offered. And we're a highly regulated company and have applied the same legal and compliance standards we use for our brokerage to the way we run our crypto business. So it's disappointing to see more regulation by enforcement here. Vlad?

Speaker Change: And now let's move on to questions Alright, Thank you Brad.

Chris Koegel: And now we'll move on to questions. All right. Thank you, Vlad.

Speaker Change: Q&A session will start by answering the top tier shareholder questions from say technologies ranked by number of votes passed over questions that we had already addressed in this call or in prior quarters and grouped together questions that shared a common team. After the same questions. We will turn to live questions from analysts.

Yeah, I mean, echoing Jason, this is a disappointing development. We firmly believe U.S. consumers should have access to this asset class. They deserve to be on equal footing with people all over the world.

Chris Koegel: For the Q&A session, we'll start by answering the top few shareholder questions from SAY Technologies, ranked by number of votes. We passed over questions that we had already addressed on this call or in prior quarters and grouped together questions that shared a common theme. After the SAY questions, we'll turn to live questions from our analysts. So we'll kick it off with our first question from SAY. Alexander M. asks, what impact will the SEC Wells Notice have on the business? Jason, do you want to start on that one? Yeah, I'll maybe start, and then Vlad can add some thoughts.

Speaker Change: Kick it off with our first question from say.

Chris Koegel: Alex Alexander M asks what impact will the SEC wells notice have on the business. Jason you want to start on that one yeah I'll, maybe start and then Vlad can add some thoughts.

And at the end of the day, we're going to defend the firm and continue to advocate for our customers.

Jason Warnick: First, for our customers, your accounts are not affected by this. It's business as usual for Robinhood Crypto. We're, of course, disappointed to have received the notice.

All right. Thank you. The next question is from Joseph C. who asks, one of the new credit cards getting fully released?

Jason Warnick: For our customers. Your accounts are not affected diverse it's business as usual for Robin at crypto.

Seems that many are still on the waiting list. Vlad, do you want to start that one? Yeah, yeah, I'll take that one. Thanks for the question.

Jason Warnick: Were of course disappointed to have received the notice as you know we've operated our crypto business in good faith.

Jason Warnick: As you know, we've operated our crypto business in good faith. We've been very conservative in our approach in terms of coins listed and services offered. And we're a highly regulated company and have applied the same legal and compliance standards we use for our brokerage to the way we run our crypto business. So it's disappointing to see more regulation by enforcement here. Vlad?

First of all, we're really excited about the gold card and the value that we're going to be providing to customers. We've seen a ton of demand, I mentioned earlier. Over 1 million customers have signed up for the wait list so far.

Vlad: We've been very conservative in our approach in terms of coins listed and services offered and we're a highly regulated company and have applied the same legal and compliance standards, we use for our brokerage to the way we run our crypto business. So it's disappointing to see more regulation by enforcement here.

and the product's looking great. You might have noticed we've dropped the credit card app on the App Store, and we've rolled it out to the first customers outside of the company.

Jason Warnick: <unk>.

Vladimir Tenev: Yeah, I mean, echoing Jason, this is a disappointing development. We firmly believe US consumers should have access to this asset class. They deserve to be on an equal footing with people all over the world.

Vlad: Yes, I mean, echoing Jason this is a disappointing development.

As we think about this rollout, we really want to balance the desire to get the card to customers as quickly as we can with making sure that we're managing risk to the capital well as we enter a new market for us.

Vlad: We firmly believe U S consumers should have access to this asset class they deserve to be on equal footing with people all over the world and at the end of the day, we're going to defend the firm and continue to advocate for our customers.

Vladimir Tenev: And at the end of the day, we're going to defend the firm and continue to advocate for our customers. All right. Thank you. The next question is from Joseph C., who asks when are the new credit cards getting fully released? Seems that many are still on the waiting list. Vlad, do you want to start that one?

So we're starting with an initial group in the tens of thousands of customers over the next few weeks.

Vladimir Tenev: Alright.

Vlad: Thank you.

Vlad: The next question is from Joseph C, who asks what are the new credit cards getting fully released seems that many are still on the waiting list.

And then we're going to observe them carefully, look at the data, watch the spending activity and the borrowing activity, and we're going to use that information to inform the broader rollout of the card. We really want to make sure that we're being very, very prudent as we do this rollout, since this is a new business line for the company.

Vladimir Tenev: Yeah, I'll take that one. Thanks for the question. First of all, we're really excited about the gold card and the value that we're going to be providing to customers. We've seen a ton of demand. As I mentioned earlier, over 1 million customers have signed up for the wait list so far, and the product's looking great. You might have noticed we've dropped the credit card app on the App Store, and we've rolled it out to the first customers outside of the company.

Vlad: Yes, I'll take that one thanks for the question.

Vladimir Tenev: First of all we're really excited about the gold card and the value that we're going to be providing to customers. We've seen a ton of demand I mentioned earlier over 1 million customers have signed up for the waitlist so far.

All right. Thank you, Glad. And then the third question from Say is from Daniel R, who asks, 24-hour market was halted. How can we trust that the platform, when markets become volatile, what steps are being implemented to handle future volatility?

Vladimir Tenev: And the product's looking rate you might have noticed we've dropped the credit card app on the App store and we've rolled it out to the first customers outside of the company as we think about this rollout we really want to balance the desire to get the card to customers as quickly as we can with making sure that we're managing risk to the capital well.

Vladimir Tenev: As we think about this rollout, we really want to balance the desire to get the card to customers as quickly as we can with making sure that we're managing risk to capital well as we enter a new market for us. So we're starting with an initial group of tens of thousands of customers over the next few weeks, and then we're going to observe them carefully, look at the data, watch the spending activity and the borrowing activity, and we're going to use that information to inform the broader rollout of the card. We really want to make sure that we're being very, very prudent as we do this rollout since this is a new business line for the company. Right? Thank you, Vlad.

First, it's really been awesome to see how much interest there is in our 24-hour market offering. Over 10 billion in volumes have transacted in the overnight session since it launched a year ago, and we now offer overnight trading in over 900 names.

Vladimir Tenev: As we enter a new market for us so.

Vladimir Tenev: We're starting with an initial group in the tens of thousands of customers over the next few weeks and then we're going to observe them carefully look at the data, what's the spending activity and the borrowing activity and we're going to use that information to inform the broader rollout of the card, we really want to make sure that we're being very very prudent as.

And really, this is one of the core differentiators of Robinhood. You don't find this type of offering elsewhere easily.

As for why trading was affected,

So in order to facilitate these trades, we route to a third-party ATS.

Vladimir Tenev: We do this rollout since this is a new business line for the company.

Vladimir Tenev: And then the third question from Say is from Daniel R., who asks, "The 24-hour market was halted. How can we trust that the platform when markets become volatile? What steps are being implemented to handle future volatility?" First, it's really been awesome to see how much interest there is in our 24 hour market offering. Over 10 billion volumes have been transacted in the overnight section since it launched a year ago, and we now offer overnight trading in over 900 names.

Vlad: Alright. Thank you Brad and then the third question from say is from Daniel who asks 24 hour market was halted how can we trust the platform.

The ATS we use went down for the evening. This affected us, but also other firms that route to it. But the ATS was able to support trading again in a handful of hours.

Vladimir Tenev: When markets become volatile what steps are being implemented to handle future volatility.

Looking ahead, we're really on the frontier with this offering, but as we continue to invest in it, the offering will improve over time, and it'll get more resilient.

Vladimir Tenev: First it's really been awesome to see how much interest there is in our 24 hour market offering over $10 billion and volumes have transacted in the overnight session since it launched a year ago.

believe us when we say that we're committed to making sure this offering is reliable and more feature-rich going forward

Vladimir Tenev: And we now offer overnight trading in over 900 names.

Vladimir Tenev: And really this is one of the core Differentiators of Robinhood, you don't find this type of offering.

All right. Thank you, Vlad. That concludes our shareholder questions from state technologies. We appreciate our shareholders taking the time to ask these questions of Vlad and Jason and look forward to more next quarter. Now I'll turn the call over to you to one. It's a lead Q&A from analysts.

Vladimir Tenev: Elsewhere easily.

Vladimir Tenev: And really, this is one of the core differentiators of Robinhood. You don't find this type of offering elsewhere easily. As for why trading was affected, so in order to facilitate these trades, we route them to a third-party ATS. The ATS we use went down for the evening.

Vladimir Tenev: As for wide trading was affected so in order to facilitate these trades, we route to a third party Etfs.

Thank you. Ladies and gentlemen, as a reminder to ask the question, please press 1-1 on your telephone and then wait to hear your name announce. Limit yourself to one question, and then you may jump back into the queue. To withdraw your question, please press 1-1 again. Please stand by while we compile the Q&A roster.

Vladimir Tenev: This affected us but also other firms that routed to it, but the ATS was able to support trading again in a handful of hours. Looking ahead, we're really on the frontier with this offering. But as we continue to invest in it, the offering will improve over time, and it'll become more resilient. Believe us when we say that we're committed to making sure this offering is reliable and more feature-rich going forward. All right. Thank you, Vlad.

Vladimir Tenev: The Ats, we use went down for the evening this affected us, but also other firms that route to it.

Vladimir Tenev: But the Ats was able to support trading again and a handful of ours looking ahead, we're really on the frontier with this offering.

Our first question comes from the line of Devin Ryan with Citizens JMP. Your line is open.

Vladimir Tenev: But as we continue to invest in it the offering will improve over time and it will get more resilient.

Hey, thanks so much. Hi, Vlad. Hi, Jason. How are you?

Vladimir Tenev: So believe us when we say that we're committed to making sure. This offering is.

Hey, Devin.

I want to ask a question on the growth in new deposits. I mean, just really impressive momentum there. And good to hear the second quarter is accelerating further. And it feels like you're just scratching the surface on gold adoption. I think flat as you talk about. And I also think the offering really stands out in the market. So, you know, with that said, I heard Jason's comments on better ARPU for gold customers. But is it possible to kind of simplistically unpack the economics you're expecting on new deposits coming in to, you know, a gold connected account under these new promotions relative to deposits that aren't or even...

Vladimir Tenev: Reliable and more feature rich going forward.

Chris Koegel: That concludes our shareholder questions from State Technologies. We appreciate our shareholders taking the time to ask these questions of Vlad and Jason and look forward to more next quarter. Now I'll turn the call over to Juana to lead Q&A for Maryland. Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 11 on your telephone and then wait to hear your name announced, limit yourself to one question, and then you may jump back into the, To withdraw your question, please press star 11 again.

Vladimir Tenev: Alright. Thank you Brad that concludes our shareholder questions from say technologies. We appreciate our shareholders taking the time to ask these questions, Brian Jason and look forward to more next quarter now I'll turn the call over to Keith wanted to lead Q&A from analysts. Thank.

Juana: Thank you, ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone and wait to hear your name announce limit yourself to one question and then you may jump back into the queue.

Juana: To withdraw your question. Please press star one again.

Operator: Please stand by while we compile the Q&A roster. Our first question comes from the line of Devin Ryan with Citizens JMP. Your line is open. Hey, thanks so much. Hi, Vlad. Hi, Jason. How are you?

Juana: Please standby, while we compile the Q&A roster.

Devin Patrick Ryan: Hey Devin, when asked the question on the growth in new deposits, I mean, really impressive momentum there and good to hear the second quarter is accelerating further, and it feels like you're just scratching the surface on gold adoption, I think a lot of what you talk about, and I also think the offering really stands out in the market. So with that said, I heard Jason's comments on better ARPU for gold customers, but is it possible to kind of simplistically unpack the economics you're expecting on new deposits coming in to a gold-connected account under these new promotions relative to deposits that aren't or even kind of like revenue per asset under the model prior to these promotions? I'm just trying to think about the economics on a net of dollars coming in because it seems like Thank you. Thanks, Devin. It's Jason.

Operator: Our first question comes from the line of Devin Ryan with citizens JMP. Your line is open.

kind of like revenue per asset under kind of the model prior to these promotions. I'm just trying to think about the economics, the net of dollars coming in because it seems like you're seeing a really nice acceleration there. Thank you.

Devin Patrick Ryan: Hey, Thanks, so much hi, Vlad hi, Jason how are you.

Jason Warnick: Hey, Devin.

Jason Warnick: I wanted to ask a question on <unk>.

Devin Patrick Ryan: The growth in new deposits I mean, just really impressive momentum there and good to hear.

Yeah, thanks, Devin. It's Jason. I'll go ahead and take that. So in short, we love the economics of the match promotions that we've been running. I think I said last quarter that the payback on the 1% match

Jason Warnick: Second quarter's accelerating further.

Jason Warnick: It feels like you're just scratching the surface on gold adoption I think flat is you've talked about.

Devin Patrick Ryan: Also offering really stands out in the market. So with that said I heard Jason's comments on better <unk> for gold customers, but is it possible to kind of Simplistically unpack the economics youre expecting on new deposits coming in too.

is a little under a year and on the 3% match,

it's between two and three years. And we're watching that closely, kind of on a monthly cohort basis with our customers. We're seeing the 2023 cohort's already paying off.

and 2024 is off to a great start. You know, we mentioned on our prepared remarks, too, that, you know, the strength of net deposits, 44% annualized growth rate,

Jason Warnick: <unk> connected account under these new promotions relative to <unk>.

Jason Warnick: Deposits that arent or even kind of like revenue.

Jason Warnick: For assets under kind of the model prior to these promotions I'm just trying to think about the economics.

is really well diversified between customers that have been at the company for, have been at Robin Hood for over a year, representing 75% of those net deposits.

Devin Patrick Ryan: Net.

Jason Warnick: Coming in because it seems like Youre seeing a really nice acceleration there. Thank you.

And we're also seeing that 75% cut a different way are unrelated to the promotion. So really strong promotion response, but it's only a small part of the strength of the overall deposits for the quarter.

Jason Warnick: I'll go ahead and take that. So, in short, we love the economics of the match promotions that we've been running. I think I said last quarter that the payback on the 1% match is a little under a year, and on the 3% match, it's between two and three years.

Devin Patrick Ryan: Yes, I think the evidence Jason I'll go ahead and take that so in short we love the economics of the match promotions that we've been running I think I said last quarter.

Jason Warnick: The payback on the 1% match.

Thank you.

Jason Warnick: He is a little under a year and on the 3% match.

Please stand by for our next question.

Our next question comes from the line of Dan Delead with Missouhu. Your line is open.

Jason Warnick: It's between two and three years and we're watching that closely kind of on a monthly cohort basis with our customers. We're seeing the 2023 cohorts already paying off.

Jason Warnick: And we're watching that closely, kind of on a monthly cohort basis with our customers. We're seeing the 2023 cohorts already paying off, and 2024 is off to a great start.

Hey guys, thank you for taking my question. Great results out there. Really, really nice. Thanks, Dan.

Jason Warnick: And 2024 is off to a great start.

Of course. Yeah, so you mentioned some really strong numbers in April , really strong momentum. Can you maybe elaborate a little more?

Jason Warnick: We mentioned on our prepared remarks to that.

Jason Warnick: The strength of net deposits, 44% annualized growth rate.

Jason Warnick: You know, we mentioned in our prepared remarks that, you know, the strength of net deposits 44% annualized growth rate is really well diversified between customers that have been at the company for a bit of Robinhood for over a year, representing 75% of those net deposits. And we're also seeing that 75% of those net deposits are cut in a different way are unrelated to the promotion. So, really strong promotion response, but it's only a small part of the strength of the overall deposits for the quarter. Thank you. Please stand by for our next question. Our next question comes from the line of Dan Dolev, Mizzou.

regarding the momentum that you're seeing heading into the second quarter, any color and additional.

Dan Dolev: Is really well diversified between customers that have been at the company for a bit of Robin Hood for over a year.

views on the momentum would be greatly appreciated.

Dan Dolev: Representing 75% of those deposits.

Thank you. Yeah, absolutely, Dan. I mean, so we're seeing strong trading across equities, options, and crypto continuing into the next quarter.

Dan Dolev: And we're also seeing that 75% cut a different way are unrelated to the promotion. So really strong promotion response, but but it's only a small part of the strength of the overall deposits for the quarter.

We're seeing strength kind of across the business as well in terms of new gold subscribers.

Dan Dolev: Thank you.

Dan Dolev: Please standby for our next question.

We mentioned and you mentioned the strength in net deposits, nearly $5 billion. So, you know, we're really seeing great diversity of the strength. Retirement assets are now crossing over $7 billion, which is just remarkable growth. And we love to see, you know, our customers saving for the long term with us.

Dan Dolev: Our next question comes from the line of Dan to lead with Mizuho. Your line is open.

Dan Dolev: Your line is open. Okay, guys, thank you for taking my question. Great, great results out there. Really, really nice.

Dan Dolev: Hey, guys. Thank you for taking my question great Great results out there really really nice thanks, Dan.

Dan Dolev: Thanks, Dan. Of course. Yeah, so you mentioned some really strong numbers in April, really strong momentum. Can you maybe elaborate a little more regarding the momentum that you're seeing heading into the second quarter? Any color and additional views on the momentum would be greatly appreciated. Thank you.

Dan Dolev: Of course.

Dan Dolev: Yes, So you mentioned some really strong numbers in <unk>.

We're going to share our metrics, I think, next week on the month of April , and so you'll get a fuller picture there, but it's really across the board, whether it's SEC lending or trading or, you know, net deposits.

Dan Dolev: April really strong momentum can you maybe elaborate a little more regarding the momentum that youre seeing heading into the second quarter.

Speaker Change: Color and additional.

Speaker Change: <unk> views on the momentum would be greatly appreciated. Thank you, yes, yes, absolutely Dan.

Jason Warnick: So we're seeing strong trading across equities, options, and crypto, you know, continuing into the next quarter. We're seeing strength kind of across the business as well in terms of new, new gold subscribers. We mentioned, and you mentioned, the strength in net deposits, nearly five billion. So, you know, we're really seeing great diversity of the strength.

Yeah, and I would just add

We're, of course, excited about the Q1 performance and the start to Q2.

Jason Warnick: So we're seeing strong trading across equities options in crypto.

Well, I think we have some medium and longer term tailwinds to the business. The gold benefits that we announced in March, including the 1% deposit match, which really has resonated quite strongly with customers based on early feedback, has yet to launch. We're entering a new product category with the credit card.

Jason Warnick: Continuing into.

Jason Warnick: Into the next quarter.

Jason Warnick: We're seeing strength kind of across the business as well in terms of new.

Jason Warnick: New gold subscribers, we mentioned and you mentioned the strength in net deposits nearly $5 billion.

Jason Warnick: So we're really seeing.

Jason Warnick: Great diversity of the strength retirement assets are now crossing over $7 billion, which is just remarkable growth and we love to see our customers saving for the long term with us.

Jason Warnick: Retirement assets are now crossing over $7 billion, which is just remarkable growth, and we'd love to see our customers saving for the long term with us. We're going to share our metrics, I think, next week for the month of April, and so you'll get a fuller picture there.

And we've also been working on our futures and WebPro product for active traders. And, you know, we here get an early look at the products that we're building, and the teams have been working incredibly hard to make –

Jason Warnick: Sure.

Jason Warnick: Our metrics I think next week on the month of April and so Youll get a fuller picture there, but it's really across the board, whether its SEC lending or trading or.

Jason Warnick: But it's really across the board, whether it's SEC lending or trading or, you know, net deposits. Yeah, and I would just add we're, of course, excited about the Q1 performance and the start of Q2. Well, I think we have some medium and longer-term tailwinds for the business. The gold benefits that we announced in March, including the 1% deposit match, which really has resonated quite strongly with customers based on early feedback, have yet to launch.

what we believe are incredibly polished products that we're very excited about. So I think we tend to get excited about things on a quarterly basis, but we're running this business for the long term, and I think that you'll see a lot more from us.

Jason Warnick: Net deposits.

Speaker Change: And I would just add.

Jason Warnick: We're of course excited about the Q1 performance and the start to Q2.

Jason Warnick: Well I think we have some medium and longer term tailwind to the business.

Thank you.

Jason Warnick: <unk> benefits that we announced in March, including the 1% deposit match, which really has resonated quite strongly with customers based on early feedback has yet to launch or entering a new product category with the credit card and we've also been.

We stand by for our next question. Our next question comes from the line of Stephen Chubake with Wolf Research. Your line is open.

Hi. Good afternoon, Bob. Good afternoon, Jason.

Hello, David, Neiman.

Vladimir Tenev: We're entering a new product category with the credit card, and we've also been working on our futures and web pro product for active traders. And, you know, we here get an early look at the products that we're building. And the teams have been working incredibly hard to make what we believe are incredibly polished products that we're very excited about.

Yeah, so I wanted to start off with a question just on the incremental margin, XSBC, coming in at 75%, certainly a good outcome. As we think about the incremental profitability as the business scales,

Vladimir Tenev: Working on our futures and <unk>.

Vladimir Tenev: Web pro product for active traders and we.

Vladimir Tenev: Here you get an early look at the products that we're building and the teams have been working incredibly hard to make.

Is that 75% bogie a reasonable expectation for investors to underwrite? And just trying to gauge whether there's room for even further operating leverage or upside, given the marketing spend was actually relatively elevated in the quarter as well.

Vladimir Tenev: We believe our incredibly polished products that we're very excited about so I think we.

Vladimir Tenev: So I think we tend to get excited about things on a quarterly basis, but we're running this business for the long term. And I think that you'll see a lot more from us. Thank you.

Vladimir Tenev: We contend we tend to get excited about things on a quarterly basis, but we are running this business for the long term and I think that.

Yeah, thanks for the question. So we're not providing guidance necessarily on incremental margins. What I tell you is, you know, as I've said in previous,

Vladimir Tenev: Youll see a lot more from us.

Speaker Change: Thank you.

Steven Joseph Chubak: Please stand by for our next question. Our next question comes from Ilana Steven Chubak with Wolf Research. Your line is open. Hi, good afternoon, everybody. Hello, I'm David.

Speaker Change: Please standby for our next question.

Speaker Change: Our next question comes from the line of Stephen Ju Bank with Wolfe Research. Your line is open.

sessions that about 90% of our cost structure is fixed.

Speaker Change: Hi, good afternoon, good afternoon, Jason.

meaning that 10% of our costs kind of are variable relative to the activity of our platform. So that gives us

Steven Joseph Chubak: Hello.

Steven Joseph Chubak: Yeah, so I wanted to start off with a question just on the incremental margin excess VC coming in at 75%, certainly a good outcome. But as we think about the incremental profitability as the business scales, Is that 75% bogeyman a reasonable expectation for investors to underwrite? And just trying to gauge whether there's room for even further operating leverage or upside given that marketing spend was actually relatively elevated in the quarter. Yeah, thanks for the question.

Speaker Change: Yes, so I wanted to start off with a question just on the incremental margin ex SBC coming in at 75% is certainly a good outcome as we think about the incremental profitability as the business scales is that 75% bogey.

a lot of opportunity to drop incremental revenue to the bottom line. You're seeing us this year make a really big step up in marketing, about 100 million year over year is our plan to spend in marketing versus last year.

And, you know, as Vlad was touching on in the last

Steven Joseph Chubak: Usable expectation for investors time to arise.

The last question, we're making a lot of investments and not sitting still. And we, even with all this step up in marketing and investments for growth, we're delivering incremental margins at 75%. So we feel really good about that. We're gonna continue to watch our costs.

Steven Joseph Chubak: And just trying to gauge whether there is room for even further operating leverage or upside given the marketing spend was actually relatively elevated in the quarter as well.

Jason Warnick: So we're not necessarily providing guidance necessarily on incremental margins. What I can tell you is, as I've said in previous sessions, that about 90% of our cost structure is fixed, meaning that 10% of our costs are kind of variable relative to the activity of our platform. So that gives us a lot of opportunity to drop, you know, incremental revenue to the bottom line. You're seeing us this year make a really big step up in marketing. About $100 million year over year is our plan to spend on marketing versus last year.

Speaker Change: Yes. Thanks for the question, so we're not providing guidance necessarily on incremental margins. So I would tell you is as I.

excited to see revenue for employee cross over 1 million. You know, I think that there's a lot of opportunity to expand margins going forward.

Jason Warnick: I've said in previous.

Jason Warnick: Sessions that about 90% of our cost structure is fixed meaning that 10% of our costs are variable relative to the activity of our platform. So that gives us a lot of opportunity to drop.

Thank you.

Please stand by for our next question.

Our next question comes from the line of Kyle Voigt with KBW. Your line is open.

Hi, good evening. Thanks for taking my question.

Jason Warnick: And, you know, as Vlad touched on in the last question, we're making a lot of investments and not sitting still. And even with all this step-up in marketing and investments for growth, we're delivering, you know, incremental margins at 75%. So we feel really good about that.

Jason Warnick: Incremental revenue to the bottom line.

Maybe just a question on the gold card.

Jason Warnick: Seeing as this year make a really big step up in marketing about $100 million year over year as our plan to spend in marketing versus last year.

Obviously, the offering is very compelling and great to see the demand with the weightless set over 1 million users already.

But just wondering if you could expand upon the expected economics a bit. You've noted the $300 Arpoo previously, but that was for X1, with a relatively small subset of users that you ultimately ramp to with this offering.

Jason Warnick: And.

Jason Warnick: Glad with touching on in Alaska.

Jason Warnick: The last question, we're making a lot of investments and not sitting still and we even with all this step up in marketing and investments for growth we're delivering.

And just given how attractive the card might be for some more, you know, transactor types, those don't carry a balance. Are you still confident in your ability to profitably monetize a broad range of potential new clients?

Jason Warnick: Rental margins at 75%. So we feel really good about that we're going to continue to watch our costs.

Jason Warnick: We're going to continue to watch our costs. I'm excited to see revenue per employee cross over $1 million. You know, I think that there's a lot of opportunity to expand margins going forward. Thank you.

Jason Warnick: Excited to see revenue per employee crossover 1 million I think that there is a lot of opportunity to expand margins going forward.

And then if I just add a second part of that question,

Can you give us any flavor on what you might expect on the transaction revenue side for the offering specifically? I'm assuming maybe some level of headwind after netting out interchange and rewards, but wondering if you can kind of frame that. Thank you. Yeah.

Speaker Change: Thank you.

Kyle Kenneth Voigt: Please stand by for our next question. Our next question comes from the line of Kyle Voigt with KBW. Your line is open. Hi, good evening.

Speaker Change: Please standby for our next question.

Kyle Kenneth Voigt: Our next question comes from the line of Calvert with <unk>. Your line is open.

Kyle Kenneth Voigt: Thanks for taking my question. Maybe just a question on the gold card. Obviously, the offering is very compelling, and it's great to see the demand for the weightless set with over 1 million users already. But I was wondering if you could expand upon the expected economics a bit. You've noted the $300 ARPU previously, but that was for x1, with a relatively small subset of users that you ultimately ramp to with this offering. And just given how attractive the card might be for some more, you know, transactor types, and those don't carry a balance.

Kyle Kenneth Voigt: Hi, good evening, Thanks for taking my question.

Yeah, you bet. Thanks, Kyle, for the questions. Jason, I'll go ahead and take that. You know, the first point I'd make on the credit card is that we think it's really strategically aligned with, you know, our vision that we want

Kyle Kenneth Voigt: Just a question on the gold card, obviously offering is very compelling and great to see the demand with the weightless that over 1 million users already.

Yeah, to serve all of our customers' assets and process all of their financial transactions. And having a great value credit card, I think, is really fundamental to that.

Kyle Kenneth Voigt: Just wondering if you could expand upon the expected economics a bit <unk>.

Kyle Kenneth Voigt: Noticed that $300 <unk> previously, but that was for X one with a relatively small subset of users that you ultimately ramp too with this offering and just given how attractive part might be for some more trans actor types.

to that vision. You know, that said, we need to do this in a prudent way and in a way that makes sense economically for the company. And on that point, I think that we've got a few things that are going to benefit us.

Jason Warnick: Are you still confident in your ability to profitably monetize a broad range of potential new clients? And then, if I just add a second part to that question, can you give us any flavor of what you might expect on the transaction revenue side for the offering specifically? I'm assuming maybe some level of headwind after netting out interchange and rewards, but wondering if you can kind of frame that. Thank you. Yeah, yeah, you bet.

Kyle Kenneth Voigt: Some carrier balance are you still confident in your ability to profitably monetize a broad range of potential new clients.

You know, first of all, we're going to be able to leverage our scale. We're seeing that already play out.

Jason Warnick: And then if I can just add a second part of that question can you give us any flavor on what you might expect on the transaction revenue side for the offerings, specifically I'm, assuming maybe some level of headwind after netting out interchange and rewards, but wondering if you can kind of frame that thank you.

with a low-AC. We have over a million customers

on the wait list with essentially no marketing dollars against that.

Jason Warnick: Thanks. Thanks, Kyle, for the questions. Jason, I'll go ahead and take that.

Speaker Change: Yeah, you bet. Thanks, Thanks, Kyle for the questions Jason I'll go ahead and take that.

When you look at competitors, they're spending several hundred dollars, perhaps $500 per customer to acquire a customer. And so we really love the low-CAC opportunity that leverages our platform.

Jason Warnick: You know, the first point I'd make on the credit card is that we think it's really strategically aligned with our vision that we want to serve all of our customers' assets and process all of their financial transactions. And, you know, having a great value credit card is, I think, really fundamental to that vision. You know, that said, we need to do this in a prudent way and in a way that makes sense economically for the company.

Jason Warnick: The first point I'd make on the credit card is that we think it's really strategically aligned with our vision that we want to.

Jason Warnick: To serve all of our customers' assets and process all of their financial transactions and having a great value.

You know, we're also able, you know, versus X1, to get even better economics. And, you know, for example, cost to funds, we've already been able to improve by over 300 basis points because of our strong balance sheet and because of our strength in the financial results. And so those are a couple of areas that I'd point out.

Jason Warnick: Card I think is really fundamental to that.

Jason Warnick: To that vision.

Jason Warnick: That said, we need to do this in a prudent way and in a way that makes sense economically for the company and on that point I think that we've got a few things that are going to benefit us.

Jason Warnick: And on that point, I think that we've got a few things that are going to benefit us. You know, first of all, we're going to be able to leverage our scale. We're seeing that already play out with a low CAC.

And then thirdly, I'd say that we have an opportunity to benefit because of our deeper relationship with customers. It's going to help us understand better the customers that we are underwriting and make better decisions. And over time, have an opportunity to offer, you know, collateralized cards, which would also help with our economics.

Jason Warnick: First of all we're going to be able to leverage our scale.

Jason Warnick: We're seeing that already play out.

Jason Warnick: With a low CAC, we have over 1 million customers on the wait list with essentially.

Jason Warnick: We have over a million customers on the wait list with essentially no marketing dollars against that. And when you look at, you know, competitors, they're spending several hundred dollars, perhaps five hundred dollars per customer to acquire a customer. And so we really love the low CAC opportunity that leverages our platform. We're also able, versus X1, to get even better economics. And, you know, for example, cost of funds. We've already been able to improve by over 300 basis points because of our strong balance sheet and because of our strength in financial results. And so those are a couple of areas that I'd point out.

Jason Warnick: No marketing dollars against that and when you look at.

Jason Warnick: Competitors Theyre spending several hundred dollars, perhaps $500 per customer to acquire a customer and so we really love the low the low CAC opportunity to that Leverages our platform.

You know, as Vlad, I just finished with, you know, as Vlad pointed out,

We're going to be really careful and prudent here.

You know, we're rolling it out to tens of thousands of customers.

Jason Warnick: We're also able versus X one to get even better economics.

And we're going to take months to look at how our customers are responding, how they're using the card, they're borrowing and repayment activity, and we're going to use that to inform our broader rollout.

Jason Warnick: For example cost of funds, we've already been able to improve by over 300 basis points because of our strong balance sheet and because of our strength in the.

Jason Warnick: Financial results and so those are a couple of areas that I would point out.

And the last point I would make is two-thirds of our customers.

Jason Warnick: And then thirdly, I'd say that we have an opportunity to benefit because of our deeper relationship with customers. It's going to help us understand better the customers that we are underwriting and make better decisions and, over time, have an opportunity to offer, you know, collateralized cards, which would also help with our economics. You know, as Vlad just finished with, you know, as Vlad pointed out.

Jason Warnick: And then thirdly, I would say that we have an opportunity to benefit because of our deeper relationship with customers, it's going to help us understand better the.

are prime or higher in terms of credit rating. And so we do have a high quality customer base. And so together with the prudent rollout and the high quality customers,

Jason Warnick: The customers that we are underwriting and make better decisions and over time have an opportunity.

and benefiting from our scale and our deeper relationships with customers, we think we can land a good economic outcome for Robin Hood.

Jason Warnick: Offer.

Jason Warnick: Collateralized.

Jason Warnick: Cards, which would also help with our economics.

Jason Warnick: As flat I'll, just finish with slide pointed out.

Thank you.

Please stand by for our next question.

Jason Warnick: We're going to be really careful and prudent here. You know, we're rolling it out to tens of thousands of customers, and we're going to take months to look at how our customers are responding, how they're using the card, their borrowing and repayment activity, and we're going to use that to inform our broader rollout. And the last point I would make is, you know, two-thirds of our customers are prime or higher in terms of credit rating, and so we do have a high-quality customer base. And so, together with the prudent rollout and the high-quality customers and benefiting from our scale and our deeper relationships with customers, we think we can land a good economic outcome for Robinhood. Thank you.

Jason Warnick: We're going to be really careful and prudent here.

Our next question comes from the line of Mike Cyprus with Morgan Stanley . Your line is open. Hey, good evening. Thanks for taking the question. Just wanted to ask about capital allocation. I hope you could update us just around your latest thoughts there with $5 billion of balance sheet cash investments. Just curious how you're thinking about the appetite for dividends, buybacks, MNA, what worry M&A could be most additive at this point, given you just added on the card platform side. And then just on a minute, maybe just remind us of your hurdle rates and criteria there. Thank you.

Michael J. Cyprys: Please stand by for our next question. Our next question comes from the line of Mike Cyprys with Morgan Stanley. Your line is open. Hey, good evening.

Jason Warnick: We're rolling it out to tens of thousands of customers.

Michael J. Cyprys: And we're going to take months to look at.

Michael J. Cyprys: How our customers are responding and how they are using the card they are borrowing and repayment activity and we're going to use that to inform our broader rollout.

Michael J. Cyprys: The last point I would make is two thirds of our customers are prime or higher in terms of credit credit rating and so we do have a high quality customer base and so together with the prudent rollout and the high quality customers.

Yeah, thanks, Mike.

We love the strong balance sheet, over $5 billion of corporate cash. You know, three ways to use the capital to the benefit of shareholders. One is just, you know, investing in our business for organic growth and you're seeing us.

Michael J. Cyprys: And benefiting from our scale and our deeper relationships with customers. We think we can land.

Michael J. Cyprys: A good economic outcome for Robin Hood.

Michael J. Cyprys: Thank you.

do that with their incremental investments for growth, including the $100 million step up in marketing this year.

Michael J. Cyprys: Please standby for our next question.

Michael J. Cyprys: Thanks for taking the question. I just wanted to ask about capital allocation. Hopefully, you could update us on your latest thoughts there with $5 billion of balance sheet cash and investments. Just curious how you're thinking about the appetite for dividends, buybacks, and M&A. Where M&A could be most additive at this point, given you have just added on the card platform side, and then just on M&A, maybe just remind us of your hurdle rates and criteria there. Thank you. Yeah, thanks, Mike.

Michael J. Cyprys: Our next question comes from the line of Mike <unk> with Morgan Stanley. Your line is open.

You know, the second is M&A. You've seen us recently, acquire X1. We have a very active corp dev team, and we're looking at

Speaker Change: Hey, good evening. Thanks for taking the question I just wanted to ask about capital allocation. Obviously, you could update us just around your latest thoughts there with $5 billion of balance sheet cash and investments just curious how youre thinking about the appetite for dividends buybacks M&A.

you know, several opportunities there that can either augment our team, the talent of our team, or accelerate our product roadmap. And, you know, nothing to announce, but the team is certainly active. And then the last category is returning capital to shareholders. You saw us do that

Michael J. Cyprys: M&A could be most additive at this point given you just add it on the call.

Michael J. Cyprys: Platform side, and then just on M&A, maybe just remind us of your hurdle rates and criteria there. Thank you.

Jason Warnick: You know, we love the strong balance sheet with over $5 billion of corporate cash. You know, three ways to use the capital to the benefit of shareholders. One is just, you know, investing in our business for organic growth, and you're seeing us do that with their incremental investments for growth, including the hundred million step up in marketing this year. You know, the second is M&A.

Speaker Change: Yes, Thanks, Mike.

Jason Warnick: We love the strong balance sheet over $5 billion of.

last year in the third quarter about $600 million to

Jason Warnick: Corporate cash.

to purchase 5% of our outstanding shares. And so, you know, we're deploying capital kind of across all three. You know, in terms of, you know, hurdle rates, you'd expect us to use our cost of capital at least, and we're mindful of that.

Jason Warnick: Three ways to.

Jason Warnick: To use the capital to the benefit of shareholders one is.

Jason Warnick: Investing in our business for organic growth and Youre seeing us.

Jason Warnick: Do that with the incremental investments for growth, including the $100 million step up in marketing this year.

And, you know, nothing further to update you now on capital allocation. It's something that we're kind of constantly looking at.

Jason Warnick: You've seen us recently acquire x one; we have, you know, a very active corporate dev team, and we're looking at, You know, several opportunities there that can either augment our team, the talent of our team, or accelerate our product roadmap. And, you know, nothing to announce, but the team is certainly active. And then the last category is returning capital to shareholders. You saw us do that last year in the third quarter with about $600 million to purchase 5% of our outstanding shares.

Jason Warnick: The second is M&A, you've seen us recently acquire X one we have.

Jason Warnick: Very active.

Jason Warnick: Corp, Dev team and we're looking at.

Thank you.

Please stand by for our next question.

Jason Warnick: Several opportunities there.

Our next question comes from the line of John Todaro with Needleman Company. Your line is open.

Jason Warnick: That can either augment our team and the talent of our team.

Jason Warnick: Or accelerate our product roadmap and.

Hey, great. Thanks for taking my question and yeah, great results here. I guess we're just trying to understand the

Jason Warnick: Nothing to announce but the team is certainly.

Jason Warnick: Active and then the last category is returning capital to shareholders you saw us do that.

Yeah, of course, the crypto side of business post the Wells notice and just kind of get a little bit more color on where you're thinking at. And I guess in particular,

Jason Warnick: Last year in the third quarter about $600 million to two.

Jason Warnick: <unk> to purchased 5% of our outstanding shares.

If you look at it and you go, hey, we're kind of almost being treated the same way as Coinbase, does it start to make sense where you look at more broader listings? Because you guys have been fairly conservative on that point, or is that not really a fair way to think about it?

Jason Warnick: And so, you know, we're deploying capital kind of across all three. You know, in terms of, you know, hurdle rates, you'd expect us to use our cost of capital at least, and we're mindful of that. And, you know, nothing further to update you on capital allocation is something that we're kind of constantly looking at. Thank you.

Jason Warnick: And so we're deploying capital kind of across all three.

Jason Warnick: In terms of.

Jason Warnick: Hurdle rates, you would expect us to use our cost of capital at least in and we're mindful of that and.

Jason Warnick: And.

Yeah, I think you're right in that we've been extremely selective about the assets that we offer on the platform. I mentioned in the prepared remarks that we have seen increases in volumes and in market share on the crypto side.

Jason Warnick: Nothing nothing further to update you now on capital allocation is something that we are.

Jason Warnick: Kind of constantly looking at.

Speaker Change: Thank you.

John Todaro: Please stand by for our next question. Our next question comes from the line of John Todaro with Needleman Company. Your line is open. Hey, great.

Speaker Change: Please standby for our next question.

John Todaro: Our next question comes from the line of John <unk> with Needham <unk> Company. Your line is open.

I think for a long time, we were offering customers great pricing on purchasing crypto assets, but we weren't doing a great job of communicating it, and now we are communicating it through the user interface and through all sorts of marketing surfaces.

John Todaro: Thanks for taking my question. And yeah, great results here. I guess we're just trying to understand the... Yeah, of course, the crypto side of the business, post the Wells Notice, and just kind of get a little bit more color on what you're thinking. And I guess, in particular, If you look at it and you go, hey, we're kind of almost being treated the same way as Coinbase, does it start to make sense to look at more broader listings? Because you guys have been fairly conservative on that point? Or is that not really a fair way?

John Todaro: Hey, great. Thanks for taking my question.

John Todaro: Yes, great results here.

John Todaro: Just trying to understand.

John Todaro: Yeah of course, the crypto side that business post the wells notice.

John Todaro: Kind of get a little bit more color on what youre thinking.

And I think customers are starting to

John Todaro: And I guess in particular.

pick up on that fact. You're seeing it talked about more in social media, just how great of a deal they're getting on crypto transactions. And we're expanding in the EU, where we, again, believe that we can provide great service and great offerings to customers. So the crypto team's been working tremendously hard. The roadmap there is quite full. There's a lot to do to make the product, right?

John Todaro: If you look at it and you go Hey, we're kind of almost being treated the same way as clean base.

John Todaro: You can start to make sense, where you look at more broader listings because you guys have been fairly conservative on that point or is that not really a fair way to think about it.

Vladimir Tenev: Yeah, I think you're right in that we've been extremely selective about the assets that we offer on the platform. I mentioned in the prepared remarks that we have seen increases in volumes and in market share on the crypto side. I think for a long time, we were offering customers great prices on purchasing crypto assets, but we weren't doing a great job of communicating that.

Speaker Change: Yes, I think youre right in that we've been extremely selective about the assets that we offer on the platform.

Vladimir Tenev: I mentioned in the prepared remarks that we have seen increases in volumes and in market share on the crypto side I.

experience better for customers.

And I would just add that, you know, we've been incredibly selective in the coins that we've listed and are confident that the coin selection does not include any better securities, and we continue to apply that high standard on anything that we would list on our platform.

Vladimir Tenev: I think for a long time, we were offering customers great pricing on purchasing crypto assets, but we werent doing a great job of communicating it and now we are communicating it through the user interface and through all sorts of marketing surfaces.

Vladimir Tenev: And now we are communicating that through the user interface and through all sorts of marketing services. And I think customers are starting to pick up on that fact. You're seeing it talked about more on social media, just how great of a deal they're getting on crypto transactions. And we're expanding in the EU, where we, again, believe that we can provide great service and great offerings to customers. So the crypto team's been working tremendously hard.

Thank you.

Please stand by for our next question.

Vladimir Tenev: And I think customers are starting to pick up on that fact, youre seeing you talked about more in social media just how great of a deal they are getting on crypto transactions and.

Our next question comes from the line of Brian Bedell with Ditcher Bank. Your line is open.

Great. Thanks. Good evening. Let me just saying on the crypto theme, maybe flat and Jason, if you can talk about just the nature of the surge in crypto volumes in March. I think you said April was that $10 billion. I appreciate, of course, this is very volatile.

Vladimir Tenev: We're expanding in the EU, where we again believe that we can provide great service and great offerings to customers. So the crypto team's been.

Vladimir Tenev: Working tremendously hard the roadmap.

Vladimir Tenev: The roadmap there is quite full. There's a lot to do to make the product experience better for customers. And I would just add that, you know, we've been incredibly selective in the coins that we've listed and are confident that the coin selection does not include any that are securities, and we continue to apply that high standard to anything that we would list on our platform. Thank you.

class, but maybe if you can just talk about what you're seeing, you know, that drove that heavy activity in March.

Vladimir Tenev: There is quite full and there's a lot to do to make the products.

whether you think we could see spikes like that again. And then just the mix of crypto volumes between the EU and US is, maybe the EU is still very small, but just trying to get a sense of that.

Vladimir Tenev: Experience better for customers.

Speaker Change: And I would just add that we have.

Vladimir Tenev: Then incredibly selective and the coins that we've listed.

Vladimir Tenev: And are confident that the coin selection does not include any of that or securities and we continue.

Vladimir Tenev: To apply that high standard on anything that we would list on our platform.

Yeah, I mean, in terms of what drives crypto volumes, I think Modulo, our market share gains, our crypto activity does track the broader market.

Speaker Change: Thank you.

Brian Bertram Bedell: Please stand by for our next question. Our next question comes from the line of Brian Bedell with Dutcher Bank. Your line is open. Thanks. Good evening.

Speaker Change: Please standby for our next question.

Brian Bertram Bedell: Our next question comes from the line of Brian <unk> with Deutsche Bank. Your line is open.

I don't really want to get into prognosticating what the crypto market is going to do. That's obviously a difficult thing for anyone to do. It's a global market. There have been ETFs approved, as you all know. And...

Brian Bertram Bedell: Just staying on the crypto theme, maybe Flatt and Jason, if you could talk about just the nature of the surge in crypto volumes in March, and I think you said April was at $10 billion. I understand, of course, this is a very volatile class, but maybe if you can just talk about what you're seeing that drove that heavy activity in March and whether you think we could see spikes like that again, and then just the mix of crypto volumes between the EU and US. Maybe the EU is still very small, but I'm just trying to get a sense of that.

Brian Bertram Bedell: Alright, great. Thanks, good evening.

Brian Bertram Bedell: Maybe just seeing on the crypto theme maybe Jason.

Brian Bertram Bedell: Jason If you can talk about just the nature of the surge in volumes in March.

Brian Bertram Bedell: You said April was that $10 billion I. Appreciate of course this is very volatile.

That's why we look at market share and how we're doing relative to peers because markets go up and down But if our market share is growing throughout all conditions then over the long run We'll do very very well on that side of the business and that's kind of our approach across all of the asset classes for the active trader business I

Brian Bertram Bedell: Class, but maybe if you can just talk about what youre seeing.

Brian Bertram Bedell: Drove that heavy activity in March and whether you think we could see spikes like that again and.

Brian Bertram Bedell: And then just the mix of.

Brian Bertram Bedell: Crypto volumes between the two.

Brian Bertram Bedell: You in U S is.

Brian Bertram Bedell: Maybe the EU is still very small, but just just trying to get a sense of that.

But the goal is also to diversify the business so that we're sort of like less reliant on volumes anywhere in any one category to drive business results.

Vladimir Tenev: Yeah, I mean, in terms of what drives crypto volumes, I think Modulo, our market share gains, our crypto activity does track the broader market. And, you know, I don't really want to get into prognosticating what the crypto market is going to do. That's obviously a difficult thing for anyone to do.

Brian Bertram Bedell: Yes, I mean in terms of.

Vladimir Tenev: What drives crypto volumes I think modulo our market share gains are crypto activity does track the broader market.

That's kind of what you're starting to see in this quarter's results is really the performance of the company across all asset classes and even across wallet share with the net deposit growth numbers.

Vladimir Tenev: Yes.

Vladimir Tenev: Alright.

Vladimir Tenev: I don't really want to get into prognosticating, what the crypto market is going to do that obviously.

Vladimir Tenev: A difficult thing for anyone to do it's a global market. There have been Etfs approved does as you all know.

Vladimir Tenev: It's a global market. There have been ETFs approved, as you all know. And that's why we look at market share and how we're doing relative to peers, because markets go up and down. But if our market share is growing under all conditions, then over the long run, we'll do very, very well on that side of the business. And that's kind of our approach across all of the asset classes for the active trader business.

In terms of the mix element of your question on Europe , you're right, it's still a relatively modest contribution. The lion's share came from our U.S. crypto business, but we like what we're seeing and tens of thousands of customers there, so we'll continue investing there.

Vladimir Tenev: And that's why we look at market share and how were doing relative to peers because markets go up and down.

Vladimir Tenev: But if our market share is growing throughout all conditions, then over the long run we.

Vladimir Tenev: We will do very very well on that side of the business.

Thank you. Please stand by for our next question.

Vladimir Tenev: And thats kind of our approach across all of the asset classes for the active trader business.

Our next question comes from the line of Patrick Molley with Piper Sandler. Your line is open.

Vladimir Tenev: But the goal is also to diversify the business so that we're sort of less reliant on volumes in any one category to drive business results. I think that's kind of what you're starting to see in this quarter's results, the performance of the company across all asset classes and even across wallet share with the net deposit growth numbers. In terms of the mixed element of your question on Europe, you're right; it's still a relatively modest contribution.

Vladimir Tenev: But the goal is also to diversify the business. So that we're sort of like less reliant on <unk>.

Yes, good evening. Thanks for taking the question.

So I just had one on index options. I see it's a reference in the deck, but I didn't hear mentioned in the prepared remarks. So are you still planning to roll out index options later this year? And then just on the economics...

Vladimir Tenev: Volumes anywhere in any one category to drive business results I think that's kind of what youre starting to see in this quarter's results it's really.

It's my understanding that index options are much less profitable for the brokers than multi-listed options are. So just curious if, you know, what your expectations are around how much of your current options trading could be cannibalized by index options.

Vladimir Tenev: The performance of the company across all asset classes, and even across wallet share with the <unk>.

Vladimir Tenev: Net deposit growth numbers in terms of the mix element of your question on Europe, you are right.

And if you do or when you do roll it out, have you given any thought to potentially charging a commission on the index options? Thanks.

Vladimir Tenev: Still a relatively modest.

Vladimir Tenev: Contribution the lion's share came from our U S crypto business.

Vladimir Tenev: But we like what we're seeing in tens of thousands of customers. There. So we'll continue investing there.

Yeah, so we have announced that we're going to be launching index options. This is part of the

Speaker Change: Thank you.

Vladimir Tenev: The lion's share came from our U.S. crypto business, but we like what we're seeing and tens of thousands of customers there, so we'll continue investing there. Please stand by for our next question. Our next question comes from the line of Patrick Moley with Piper Sandler. Your line is open. Yes, good evening.

Speaker Change: Ladies standby for our next question.

overall goal of giving our active traders access to the best tools and the best value for their services. So index options are coming in Q4. We'll also be launching futures.

Patrick Malcolm Moley: Our next question comes from the line of Patrick <unk> with Piper Sandler Your line is open.

Patrick Malcolm Moley: Thanks for taking the question. So I just had one on index options. I see it's referenced in the deck, but I didn't hear it mentioned in the prepared remarks.

Patrick Malcolm Moley: Yes. Good evening, thanks for taking the question. So I just had one on index options I.

Patrick Malcolm Moley: <unk> referenced in the deck, but I didn't hear mentioned in the prepared remarks. So are you still planning to rollout index options. Later this year and then just on the economics. It's my understanding that index options are much less profitable for the brokers then multi listed options are so just curious if whats your expectations are around how much of your current options trading.

as we've mentioned in the past. And as with any new Robin Hood product,

Patrick Malcolm Moley: So are you still planning to roll out index options later this year? And then, just on the economics, it's my understanding that index options are much less profitable for the brokers than multi-listed options are? So just curious about your expectations around how much of your current options trading could be cannibalized by index options. And if you do, or when you do roll it out, have you given any thought to potentially charging a commission on index options?

there's two areas where we'd like to stand out

in the broader marketplace. One is the user experience. We want to make sure that our tools are easy for active traders to use, particularly on mobile, but also on web with the new offering that's coming there. And then economics. So

Patrick Malcolm Moley: <unk> could be Cannibalized by index options and if you do when you do roll it out have you given any thought to potentially charging a commission.

Yeah, the economics we intend to make very, very competitive, but also profitable for the company on a segment basis. So, Jason, I don't know if

Speaker Change: Index options. Thanks.

Patrick Malcolm Moley: Yeah, so we have announced that we're going to be launching index options. This is part of the overall goal of giving our active traders access to the best tools and the best value for their services. So index options are coming in Q4.

Speaker Change: Yeah. So we have announced that we're going to be launching index options. This is part of the.

Patrick Malcolm Moley: The overall goal of giving our active traders access to the best tools and the best value for.

If you wanted to add anything more specific there. Yeah, we're still working with the team on the pricing structure for index options, so we'll have to stay tuned there. But agree with Vlad that we want it to be a great value for customers and also make a lot of sense for us economically.

Patrick Malcolm Moley: Their services so index options are coming in Q4.

Vladimir Tenev: We'll also be launching futures, as we've mentioned in the past. And as with any new Robinhood product, there are two areas where we'd like to stand out in the broader marketplace. One is the user experience. We want to make sure that our tools are easy for active traders to use, particularly on mobile, but also on web with the new offering that's coming there. And then there is economics.

Patrick Malcolm Moley: We'll also be launching futures.

Vladimir Tenev: As we've mentioned in the past.

And we should note, you know, index options trade around the clock, which is one of the reasons why they become so popular. So we don't anticipate seeing a ton of cannibalization there.

Vladimir Tenev: And as with any new Robin Hood product.

Vladimir Tenev: There's two areas, where wed like to stand out in.

Vladimir Tenev: In the broader marketplace. One is the user experience, we want to make sure that our tools are easy for active traders to use particularly on mobile but also on web with the new offering that's coming there and then economics so.

Thank you. Please stand by for our next question.

Our next question comes from the line of Matthew O'Neill with F.T. Partners. Your line is open.

Yeah, hi, guys. Thanks so much for taking my question. A lot of good ones asked and answered already. I was wondering, though, since we are seeing such a clear inflection point in the MAUs, and you gave some incremental details around the growth there from the card, both gold and non-gold, sounds like a half a million each. Could you help parse maybe the rest of the monthly activities your growth, you know, even just anecdotally, like more crypto-focused or more options and equity focused. Thanks.

Vladimir Tenev: Yeah, the economics we intend to make very, very competitive but also profitable for the company on a segment basis. So, Jason, I don't know if you wanted to add anything more specific there. Yeah, we're still working with the team on the pricing structure for index options, so we'll have to have to stay tuned there. But I agree with Vlad that we want it to be great value for customers and also make a lot of sense for us economically. And we should note, you know, index options trade around the clock, which is one of the reasons why they have become so popular. So we don't anticipate seeing a ton of cannibalization there.

Vladimir Tenev: Yes, the economics, we intend to make very very competitive but also.

Vladimir Tenev: Profitable for the company on a segment basis, So Jason I don't know if.

Jason Warnick: I'd add anything more specific there, yes, we are still working with the team on the on the pricing structure for index options. So we'll have to have to stay tuned there, but agree with flat that we want it to be a great value for customers and also make a lot of sense for us economically and we should note index options trade round the clock.

Yeah, absolutely. You know, there is an impact to MAUs when crypto interest surges, and we saw that in the quarter, and so that's certainly a part of it. But when I look at the activity across the quarter, it was very broad-based. You know, equities, you know, up.

Speaker Change: As one of the reasons why they become so popular so.

Speaker Change: We don't anticipate seeing a ton of cannibalization there.

Speaker Change: Thank you.

Jason Warnick: Thank you. Please stand by for our next question. Our next question comes from the line of Matthew O'Neill with FT Partners. Your line is open.

Speaker Change: Please standby for our next question.

Matthew O'Neill: Our next question comes from the line of Matthew O'neill with Ft Partners. Your line is open.

options activity up, certainly crypto, retirement, gold members, net deposits. And so we really saw an overall list that was reflected in the engagement numbers that you're seeing.

Matthew O'Neill: Yes, hi guys. Thanks so much for taking my question. A lot of good ones have been asked and answered already.

Matthew O'Neill: Yes, hi, guys. Thanks, so much for taking my question a lot of good ones asked and answered already I was wondering now.

Matthew O'Neill: I was wondering, though, since we are seeing such a clear inflection point in the MAUs, and you gave some incremental details around the growth there from CARD, both gold and non-gold, sounds like a half a million. Could you help parse maybe the rest of the monthly activities or growth, you know, even just anecdotally, like more crypto focused or more options and equity focused? Yeah, absolutely.

Matthew O'Neill: Since you are seeing such a clear inflection point may use.

Matthew O'Neill: And you gave some incremental details around the growth there from card both golden non goal it sounds like a $5 million. Each can you help parse maybe the rest of the monthly active user growth.

Great, thank you.

Thank you.

Please stand by for our next question.

Our next question comes from the line of Ken Worthington with J.P. Morgan, your line is open.

Speaker Change: Even just anecdotally like more crypto focus or more options and equity okay. Thanks.

Jason Warnick: You know, there is an impact on MAUs when crypto interest surges, and we saw that in the quarter. So that's certainly part of it. But when I look at the activity across the quarter, it was very broad-based.

Hi, good afternoon. Thanks for taking the question. When we look at your promotions, Hi, if we look at your promotions, they seem focused on gathering additional customer assets.

Speaker Change: Yes, absolutely.

Speaker Change: There is.

Jason Warnick: And impact may use win with crypto.

Jason Warnick: Interest surges and we saw that in the quarter and so that's certainly a part of it but when I look at the activity across the quarter. It was very broad based.

Do you think such asset-focused promotions could endure over their intermediate term or even longer term as a business strategy?

Jason Warnick: Equities.

Jason Warnick: You know, equities, you know, up, options activity up, certainly crypto, retirement, gold numbers, net deposits. And so we really saw an overall lift that was reflected in the engagement numbers that you're seeing. Great, thank you.

Jason Warnick: Up.

any reasons why the competition might not either be able to or just might not follow you with promotions of their own.

Jason Warnick: Options activity, certainly crypto retirement gold members.

Jason Warnick: Net deposits and so we really saw an overall lift that was reflected in the engagement numbers that youre seeing.

And as we think about, you know, other behaviors you want to target, are there others that promotions might make sense for you to target at some point in the future?

Speaker Change: Great. Thank you.

Jason Warnick: Okay.

Speaker Change: Thank you.

Kenneth Brooks Worthington: Please stand by for our next question. Our next question comes from the line of Ken Worthington with J.P. Morgan. Your line is open. Hi, good afternoon.

Speaker Change: Please standby for our next question.

Yeah, I can start with that. I think the first thing I should note is

Kenneth Brooks Worthington: Our next question comes from the line of Ken Worthington with Jpmorgan. Your line is open.

We've invested in building a strong data science and product analytics capability from inception in the company. And I think that's starting to...

Kenneth Brooks Worthington: Thanks for taking the question. When we look at your promotions, they seem focused on gathering additional customers. Do you think such asset-focused promotions could endure over their intermediate term or even longer term as a business strategy? Any reasons why the competition might not either be able to or just might not follow you with promotions of their own? And as we think about, you know, other behaviors you want to target, are there others that promotions might make sense for you to target at some point? Yeah, I can; I can start with that.

Kenneth Brooks Worthington: Hi, good afternoon. Thanks for taking the question when we look at your pay question Hi, when you're looking at promotions they seem focused on.

become a key differentiator now that AI is becoming more and more important and now that we've started running these promotions and

Speaker Change: Gathering additional customer assets.

Speaker Change: Zinc such asset focused promotions could enter.

We look at it very closely. We can track them all sorts of ways across cohorts and different types of customer behavior. And we like what we're seeing. I think Jason mentioned earlier in the call that for the 1% matches, we've been targeting a sub one-year payback, and that's between two and three years for the 3% promotions. And the cohorts from 2023 have already paid back with 2024 looking good as well. So we feel really good about the offering and

Kenneth Brooks Worthington: The intermediate term or even longer term as a business strategy.

Kenneth Brooks Worthington: Any reasons why the competition might not either be able to or just might not follow you with promotions of of their own.

Speaker Change: And as we think about.

Kenneth Brooks Worthington: Other behaviors you want to target are there others that promotions might make sense for you to target.

Speaker Change: At some point in the future.

Vladimir Tenev: I think the first thing I should note is that we've invested in building a strong data science and product analytics capability since inception of the company. And I think that's starting to become a key differentiator now that AI is becoming more and more important. And now that we've started running these promotions, we look at them very closely; we can track them in all sorts of ways across cohorts and different types of customer behavior.

Speaker Change: Yes, I can I can start with that.

Vladimir Tenev: I think the first thing I should note is we've invested in building a strong data science and product analytics capability from inception in the company and I think thats starting to become a key differentiator now that AI is becoming more and more important than now that we started running these.

you should see more creativity from the team going forward. I don't think that we've fully excavated what we can do with this capability that we've built.

Ken, we love that we're taking share. We love that we're winning assets against the incumbents.

Vladimir Tenev: <unk>.

Vladimir Tenev: We look at it very closely we can track them all sorts of ways across cohorts and different types of customer behavior, and we like what we're seeing I think Jason mentioned earlier in the call that for the 1%.

And in terms of your question about, you know, how durable it is in the medium to longer term, I don't see any reason with our, you know, highly scalable platform that we can't continue to offer promotions like that, especially with the attractive paybacks that we're

Vladimir Tenev: And we like what we're seeing. I think Jason mentioned earlier in the call that for the 1% matches, we've been targeting a sub-one year payback, and that's between two and three years for the 3% promotions.

Vladimir Tenev: Matches, we have been targeting a sub one year payback and thats between two and three years for the 3% promotions and the cohorts from 2023 have already paid back with 2024 looking good as well so.

that we're realizing.

on your question about whether it's something that could be copied by competitors. You know, I think we could all come up with a handful of reasons why it would be challenging for them, whether it's their cost structure or just their installed based and defending that through a promotion like that. But we love the promotions here at Robin Hood, and again, we like that we're taking share.

Vladimir Tenev: We feel really good about the offering and.

Vladimir Tenev: You should see more creativity from from the team going forward I don't think that we've fully excavated what we can do with.

Thank you. Please stand by for our next question.

Vladimir Tenev: This capability that we built.

Vladimir Tenev: And the cohorts from 2023 have already paid back, with 2024 looking good as well, fully exploring what we can do with this capability that we've built. Ken, we love that we're taking share. We love that we're winning assets against the incumbents.

Vladimir Tenev: Ken We'd love that we're taking share we love it we're winning assets against the.

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

Vladimir Tenev: The incumbents.

Vladimir Tenev: And in terms of your question about how durable it is in the medium to longer term, I don't see any reason why, with our highly scalable platform, we can't continue to offer promotions like that, especially with the attractive paybacks that we're realizing. On your question about whether it's something that could be copied by competitors, you know, I think we could all come up with a handful of reasons why it would be challenging for them, whether it's their cost structure or just their installation base and defending that through a promotion like that. But we love the promotions here at Robinhood. And, and, again, we like that we're taking a share. Thank you.

Vladimir Tenev: And in terms of your question about.

Hi, good evening and thanks for taking the question. Just on the topic of competition, you highlighted that 25% of net transfers came from other brokerages. Can you just talk about like this customer cohort? How do they compare to your pre-existing customer base? Are they coming? Are you seeing any behaviors? Are they coming for the high savings rate? Are they coming for the deposit bonus? Are they active traders? Are they engaging in crypto? Like any kind of characteristics of this cohort, are they similar or different from sort of like the existing customer base? Thank you.

Vladimir Tenev: How durable it is in the medium to longer term I don't see any reason with our.

Vladimir Tenev: Highly scalable platform that we can't continue to offer promotions like that especially with the attractive paybacks that were.

Vladimir Tenev: We are realizing.

Vladimir Tenev: Hi.

Vladimir Tenev: On your question about whether it's something that could be copied by competitors.

Vladimir Tenev: I think we can all come up with.

Vladimir Tenev: A handful of reasons why it would be challenging for them, whether it's their cost structure or just their installed based and defending that through a promotion like that but we love the promotions.

You know, they're probably more similar than different. One of the things that I'd highlight is they're coming in with average balances that are much higher than our typical historical customers. So loving the quality of the assets being brought and the activity of the customers. And it's really reflected, too, in the comments that we're making about payback periods on these promotions, that we are seeing, you know, customers engage with our products. in a way that generates revenue for us.

Vladimir Tenev: Here at Robinhood, and and again, we like that we're taking share.

Speaker Change: Thank you.

Speaker Change: Please standby for our next question.

Benjamin Elliot Budish: Please stand by for our next question. My next question comes from the line of Benjamin Budish with Barclays. Your line is open.

Vladimir Tenev: Our next question comes from the line of Benjamin <unk> with Barclays. Your line is open.

Benjamin Elliot Budish: Hi, good evening, and thanks for taking the question. Just on the topic of competition, you highlighted that 25% of net transfers came from other brokerages. Can you just talk about this customer cohort? How do they compare to your pre-existing customer base? Are they coming, you know, are you seeing any behaviors?

Benjamin Elliot Budish: Hi, good evening and thanks for taking the question.

Benjamin Elliot Budish: Just on the topic of competition you highlighted that 25% of net transfers came from other brokerages can you just talk about like this customer cohort how do they compare to your existing customer base are they coming in are you seeing any behaviors are they coming for the highest savings really becoming for the deposit bonus are they active traders are they engaging in crypto like any kind of characteristics of this cohort of the <unk>.

Thank you.

I'm showing no further questions in the queue. I will now like to turn the call back over to Vlad for closing remarks.

Thank you guys for all the questions. And look, we love the quarter. We love where the business is heading. I think that long term, we're really positioning Robin Hood to be –

Benjamin Elliot Budish: Similar different from sort of like the existing customer base. Thank you.

Benjamin Elliot Budish: There are probably more similar than different one of the things that I'd highlight is they're coming in with average balances that are much higher than our typical.

a generational company that will benefit from a generational wealth transfer that is only starting now from older generations to Gen X and Millennials.

Benjamin Elliot Budish: Historical customer so.

Benjamin Elliot Budish: Loving the quality of the assets being brought and the.

And the goal over the long run is for all of our customers, all of their assets should be custodied at Robin Hood and all of their financial transactions should go through Robin Hood. And I think you're starting to see us make significant progress towards that. So thank you for being with us on the call and on the journey.

Benjamin Elliot Budish: And the activity of the customers and its and its really reflected to in the comments that we're making about payback periods on these promotions that we are seeing.

Benjamin Elliot Budish: Customers engage with our products.

Benjamin Elliot Budish: In a way that generates revenue for us.

Speaker Change: Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Benjamin Elliot Budish: I'm showing no further questions in the queue I would now like to turn the call back over to Vlad for closing remarks.

Speaker Change: Alright, Thank you guys for all the questions.

Benjamin Elliot Budish: Look we love the quarter, we love, where the business is heading I think that long term, we're really positioning robinhood to be.

Benjamin Elliot Budish: A generational companies that will benefit from a generational wealth transfer that is only starting now from older generations to Gen X and millennials and.

Benjamin Elliot Budish: The goal over the long run is for all of our customers all of their assets should be custody at robinhood and all of their financial transactions should go through Robinhood and I think youre starting to see us make significant progress towards that so thank you for being with us on the call and on the journey.

Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

Benjamin Elliot Budish: Okay.

Benjamin Elliot Budish: Sure.

Benjamin Elliot Budish: Yes.

Benjamin Elliot Budish: Okay.

Benjamin Elliot Budish: Yes.

Benjamin Elliot Budish: Sure.

Benjamin Elliot Budish: Okay.

Benjamin Elliot Budish: Yeah.

Benjamin Elliot Budish: [music].

Jason Warnick: Are they coming for the high savings rate? Are they coming for the deposit bonus? Are they active traders? Are they engaging in crypto? Are there any kind of characteristics of this cohort?

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

Jason Warnick: After the speaker's presentation, there will be a question and answer session.

Jason Warnick: To ask a question. During this session you will need to press star one on your telephone.

Jason Warnick: Or would they didn't hear automated message advising your hand is raised.

Speaker Change: We ask that you limit yourself to one question.

Jason Warnick: To withdraw your question. Please press star one again.

Jason Warnick: Are they similar or different from sort of like the existing customer base? Thank you. They're probably more similar than different.

Jason Warnick: I would now like to turn the call over to Chris Cagle VP of corporate F. P. N E and Investor Relations you may begin.

Vladimir Tenev: One of the things that I'd highlight is they're coming in with average balances that are much higher than our typical historical customers. So I love the quality of the assets being brought in and the activity of the customers. And it's really reflected too in the comments that we're making about payback periods on these promotions that we are seeing customers engage with our products in a way that generates revenue for us. Thank you. I'm showing no further questions in the queue.

Speaker Change: Thank you Andrea and thank you everyone for joining <unk> Q1 earnings call with US today, our CEO and co founder Brian Dennis.

Speaker Change: CFO adjacent warnecke.

Vladimir Tenev: We're getting started I want to remind you that today's call will contain forward looking statements actual results could differ materially from our expectations and we have no duty to provide updates unless legally required.

Vladimir Tenev: Risk factors that could cause differences, including regulatory developments that we continue to monitor are described in the press release, we issued today the earnings presentation, and our SEC filings all of which can be found at investors that Robin Hood Dot com.

Vladimir Tenev: This discussion will also include non-GAAP financial measures reconciliations to the GAAP results. We consider most comparable can be found in the earnings presentation with that let me turn it over and blood.

Vladimir Tenev: I would now like to turn the call back over to Vlad for closing remarks. Thank you guys for all the questions. And look, we love the quarter.

Vlad: Thanks, Chris.

Operator: We love where the business is heading. I think that, long term, we're really positioning Robinhood to be a generational company that will benefit from a generational wealth transfer that is only starting now from older generations to Gen X and millennials. And the goal over the long run is for all of our customers, all their assets should be stored at Robinhood, and all of their financial transactions should go through Robinhood. And I think you're starting to see us make significant progress toward that.

Vlad: Hi, everyone.

Vlad: Again, we will keep my remarks short so that we can have plenty of time for questions.

Operator: So just to remind everyone robinhood is focused on three things.

Operator: One winning the active trader market.

Operator: Number two increasing wallet share with our customers and number three expanding internationally.

Operator: We believe the strategy is working and it led to strong business outcomes in Q1.

Operator: So thank you for being with us on the call and on the journey. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now, [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Hello, and welcome to Robinhood First Quarter 2024 Earnings Conference Call.

Operator: First retail market retail trading market share.

Speaker Change: It can continue to increase in Q1, and it was really bolstered by our product innovation as a result year over year notional trading volumes were up significantly across equities options and crypto.

Speaker Change: Net deposits they were a record $11 2 billion with strong diversity across brokerage cash sweep and retirement.

Speaker Change: This translates to a 44% annualized organic growth rate and continues our multi year track record of delivering 20% plus net deposit growth.

Robinhood: And customers are also moving their assets to robinhood and record numbers.

Robinhood: Q1 was the second quarter in a row, we had net asset inflows from every other major brokerage totaling nearly $3 billion more than twice our Q4 level.

Speaker Change: Also wanted to highlight gold subscribers customers are finding our gold offerings compelling across high yield cash retirement margin rates and now our gold credit card. This slide Gold's subscribers reached $1 7 million in Q1 higher than at any other point in our history.

Operator: The 260000 gold subscribers, we added in Q1 was the fastest in the past three years.

Speaker Change: It's also exciting to see that nearly 20% of new funded customers in Q1 subscribed to gold and thats more than double a year ago.

Speaker Change: Putting this all together with continued expense discipline led to record revenues up 40% year over year and record GAAP EPS of positive 18.

Speaker Change: Now, what's even more exciting is that we continue to deliver amazing value to customers and before I share more about what we're doing for our gold customers, let's have Jason review our financial results.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand. We ask that you limit yourself to one question. To withdraw your question, please press star 11 again.

Speaker Change: Thanks flat, it's good to speak with everyone today.

Operator: As a reminder, last year, we drove significant profitable growth with revenue up 37% and adjusted EBITDA margins expanding by 36 points.

Operator: In 2024, we're focused on driving another year of profitable growth and we had a strong Q1 with 40% year over year revenue growth and 14 points of margin expansion from a year ago. We.

Chris Koegel: I would now like to turn the call over to Chris Koegel, VP of Corporate FP&A and Investor Relations. You may begin. Thank you, Jawanda, and thank you, everyone, for joining Robinhood's Q1 Earnings Call. With us today are CEO and co-founder, Vlad Tenev, and CFO, Jason Warnick. Before getting started, I want to remind you that today's call will contain forward-looking statements. The actual results could differ materially from our expectations, and we have no duty to provide updates unless legally required.

Chris Koegel: We also set records in Q1 for quarterly revenues adjusted EBITDA adjusted EBITDA margin.

Chris Koegel: Net income and GAAP EPS.

Chris Koegel: Looking more closely at our Q1 results compared to a year ago.

Chris Koegel: Total net revenues grew 40% to $618 million.

Chris Koegel: Adjusted EBITDA more than doubled to $247 million Inc.

Chris Koegel: Incremental margins were 75% demonstrating the scalability of our cost structure.

Chris Koegel: Even while we increased marketing and growth investments.

Chris Koegel: And adjusted EBITDA margins expanded by 14 points to 40% as we make progress over time towards the 50% plus levels, we see from incumbents.

Chris Koegel: All of this led to net income of $157 million or <unk> 18 of.

Chris Koegel: EPS were.

Chris Koegel: We're pleased with our results in Q1, and we aim to continue delivering profitable growth in 2024.

Chris Koegel: Now, let's move to our first quarter business results assets under custody finished Q1 at around at a record 130 billion up 65% year over year.

Chris Koegel: A key driver of that asset growth was strong Q1 net deposits of over $11 billion, which is more than double last year's quarterly average and translates to a 44% annualized growth rate.

Vladimir Tenev: With that, let me turn it over to Vlad. Thanks, Chris. Hi, everyone. I will again keep my remarks short so that we can have plenty of time for questions. So just to remind everyone, Robinhood is focused on three things. Number one, winning the active trader market. Number two, increasing wallet share with our customers. And number three, expanding internationally.

Chris Koegel: We're encouraged by the breadth and durability of Q1 net deposits. So let me share a little more color.

Vladimir Tenev: We believe the strategy is working, and it led to strong business outcomes in Q1. First, retail trading market share. It can continue to increase in Q1, and it was really bolstered by our product innovation. As a result, year-over-year notional trading volumes were up significantly across equities, options, and crypto. Net deposits were a record $11.2 billion with strong diversity across brokerage, cash sweep, and retirement.

Speaker Change: First we saw strong participation from both existing and new customers with about 75% of net deposits coming from customers, who have been in Robin Hood for over a year.

Vladimir Tenev: Second we saw a nice mix of continued strong contributions from customers and wins versus brokerage incumbents. The mix was about 75% contributions from customers and 25% net wins from incumbents.

Vladimir Tenev: And third deposits into our platform were balanced across product categories, a little more than half of Q1 net deposits went to brokerage another quarter went to cash sweep in the last 20% to retirement.

Vladimir Tenev: So overall, we're really pleased with the diversity of net deposits as customers engage with us across our platform.

Vladimir Tenev: Looking at Q2, so far it's off to a good start as well as April was our highest month of the year for net deposits with nearly $5 billion.

Vladimir Tenev: And with our continued progress in early May we've already brought in more net deposits year to date than the $17 billion. We did in all of 2023.

Vladimir Tenev: With most of the year still in front of us.

Vladimir Tenev: We're also delivering growth and robinhood gold as a reminder of how gold subscribers on average compared to our customers' overall in Q1 gold subscribers had eight times.

Vladimir Tenev: With an average of over $40000.

Vladimir Tenev: Grew net deposits roughly twice as fast and had five times the retirement account adoption.

Vladimir Tenev: Goal <unk> is also multiples of our average customer which includes the annualized recurring subscription revenue approaching $100 million.

Vladimir Tenev: And in Q1, we grew gold subscribers to $1 7 million up 42% or 500000 from last year.

Vladimir Tenev: This momentum has continued into Q2 as we added another 140000 gold subscribers in April more than half of our Q1 growth.

Vladimir Tenev: Customers are finding our gold offerings compelling across high-yield cash, retirement, margin rates, and now our gold credit card. This led gold subscribers to reach 1.7 million in Q1, higher than at any other point in our history. The 260,000 gold subscribers we added in Q1 was the fastest growth in the past three years. It's also exciting to see that nearly 20% of new funded customers in Q1 subscribe to gold, and that's more than double a year ago. Putting this all together with continued expense discipline led to record revenues of 40% year-over-year and record gap EPS of positive 18 cents.

Speaker Change: Let's now turn to our financial results.

Vladimir Tenev: Now, what's even more exciting is that we continue to deliver amazing value to customers. And before I share more about what we're doing for our gold customers, I'll have Jason review our financial results. Thanks, Vlad.

Vladimir Tenev: The first quarter, we generated net income of $157 million up five X sequentially as we grew revenues and stayed disciplined on expenses.

Jason Warnick: Looking at Q1 revenues transaction based revenues increased sequentially across equities options and crypto.

Jason Warnick: Incremental margins were 75%, demonstrating the scalability of our cost structure, even while we increased marketing and growth investment, and adjusted EBITDA margins expanded by 14 points to 40% as we make progress over time towards the 50% plus levels we see from incumbent. All of this led to net income of $157 million, or $0.18 of EPF. We're pleased with our results in Q1, and we aim to continue delivering profitable growth in 2024. Now, let's move to our first quarter business results. Assets under custody finished Q1 at around $130 billion, up 65% year over year.

Jason Warnick: A key driver of that asset growth was strong Q1 net deposits of over $11 billion, which is more than double last year's quarterly average and translates to a 44% annualized growth rate. We're encouraged by the breadth and durability of Q1 net deposits, so let me share a little more color. First, we saw strong participation from both existing and new customers, with about 75% of net deposits coming from customers who've been at Robinhood for over a year.

Jason Warnick: And net interest revenues grew as a result of higher balances and securities lending activity.

Jason Warnick: Second, we saw a nice mix of continued strong contributions from customers and wins versus brokerage incumbents. The mix was about 75% contributions from customers and 25% net wins from incumbents. And third, deposits into our platform were balanced across product categories. A little more than half of Q1 net deposits went to brokerage, another quarter went to cash sweep, and the last 20% went to retirement.

Jason Warnick: So far in Q2, we've continued to see robust trading and.

Jason Warnick: So overall, we're really pleased with the diversity of MetDeposits as customers engage with us across our platform. Looking at Q2, so far, it's off to a good start as well, as April was our highest month of the year for net deposits, with nearly $5 billion. With our continued progress in early May, we've already brought in more net deposits year to date than the $17 billion we did in all of 2023, with most of the year still in front of us.

Jason Warnick: In April equity notional volumes were about $70 billion.

Jason Warnick: Options contracts, where a monthly record of roughly $125 million.

Jason Warnick: And crypto notional volumes were around $10 billion.

Jason Warnick: Now, let's turn to first quarter expenses.

Jason Warnick: Bind adjusted Opex at SBC was $460 million in Q1, as we stayed disciplined on expenses, even as we increased investments in marketing and growth.

Speaker Change: Before I pass the call back to flat I want to share some perspectives about our opportunity to drive profitable growth in 2024, and the years to come by growing revenues and expanding margins.

Jason Warnick: First we believe we can continue our multiyear track record of delivering 20% plus net deposit growth rates supported by a young customer base gaining share of global wealth share gains in existing markets and expansion into new markets and product categories that give us more opportunity for growth.

Jason Warnick: Second as customer assets grow over time, we believe this will drive strong revenue growth as well, we're naturally hedged between interest rates and trading and we continue to diversify our business as we introduce new products and enter new markets.

Jason Warnick: And third we're a technology company.

Jason Warnick: Highly scalable platform with about 90% fixed costs. So as our revenues increase we believe we can drive significant margin expansion and free cash flow.

Jason Warnick: In closing we had a strong Q1.

Jason Warnick: And we have a lot of momentum to start the second quarter.

Jason Warnick: We remain focused on driving profitable growth for shareholders as we work to maximize EPS and free cash flow per share in 2024, and the years to come now.

Flat: Now I'll turn the call back to flat.

Jason Warnick: We're also delivering growth in Robinhood Gold. As a reminder of how gold subscribers on average compared to our customers overall, in Q1, gold subscribers had eight times the, with an average of over $40,000, grew net deposits roughly twice as fast, and had five times the retirement account adoption. Gold ARPU is also multiples of our average customer, which includes annualized recurring subscription revenue approaching $100 million.

Jason Warnick: Jason as I said earlier, the second part of our strategy is increasing wallet share with customers, including growing robinhood gold subscriptions, which hit an all time high of $1 7 million in Q1 in March we held robinhood its first ever keynote event to introduce even more value that we're providing gold customers, including.

Jason Warnick: <unk>, an all new customizable app experience, a 1% unlimited deposit boost for gold customers Thats launching soon and a brand new Robinhood gold credit card with 3% back on all purchases were seeing lots of commentary about how amazing of a deal gold is and we're happy customers are recognizing that and starting to spread the word.

Jason Warnick: Over 1 million people have signed up for the gold card waitlist only half of which are gold subscribers. Today. So we believe we can substantially grow gold adoption as we rollout the card.

Jason Warnick: And in Q1, we grew gold subscribers to 1.7 million, up 42% or 500,000 from last year. This momentum has continued into Q2, as we added another 140,000 gold subscribers in April, more than half of our Q1 growth. Now, let's now turn to our financial results. In the first quarter, we generated net income of $157 million, up 5x sequentially, as we grew revenues and stayed disciplined on expenses.

Jason Warnick: We love seeing the progress, we're making attracting retaining and expanding gold customer relationships on the journey to be the most trusted lowest cost and most culturally relevant money app worldwide.

Jason Warnick: I want to thank our customers for continuing to trust an advocate for the platform as we make progress on our mission to Democratize finance for all the business is in a great position because of you and we're just getting started and you should know our team has been working incredibly hard to deliver even more value to you. The roadmap is full there is so much to do.

Jason Warnick: Option contracts were a monthly record of roughly $125 million, and Crypto Notional volumes were around $10 billion. Now let's turn to first quarter expenses. Combined Adjusted Off X and SBC revenue was $460 million in Q1, as we stayed disciplined on expenses, even as we increased investments in marketing and growth.

Jason Warnick: Looking ahead, while the year is off to a strong start, we know it's important to stay disciplined on expenses. So our full-year adjusted OPEX and SBC outlook is unchanged in the range of 1.85 to 1.95 billion. Before I pass the call back to Vlad, I want to share some thoughts about our opportunity to drive profitable growth in 2024 and the years to come by growing revenues and expanding margins. First, we believe we can continue our multi-year track record of delivering 20% plus net deposit growth rates, supported by a young customer base gaining a share of global wealth, share gains in existing markets, and expansion into new markets and product categories that give us more opportunities for growth. Second, as customer assets grow over time, we believe this will drive strong revenue growth as well.

Vlad: And now let's move on to questions Alright, Thank you Brad.

Vladimir Tenev: Q&A session will start by answering the top tier shareholder questions from say technologies ranked by number of votes passed over questions that we had already addressed in this call or in prior quarters and grouped together questions. The chair to common team. After the same questions. We will turn to lab questions from analysts so I'll kick it off with our first question from say.

Vladimir Tenev: Alex Alexander M asks what impact will the SEC wells notice have on the business, Jason do Australia that one yes, I'll, maybe start and then Vlad can add some thoughts first for our customers. Your accounts are not affected diverse it's business as usual for Robin at crypto.

Vladimir Tenev: Were of course disappointed to have received the notice as you know we've operated our crypto business in good faith, we have been very conservative in our approach in terms of coins listed and services offered and we're a highly regulated company and have applied the same legal and compliance standards, we use for our brokerage to the way we run our crypto business. So it's disappointing to see.

Vladimir Tenev: More of a regulation by enforcement here.

Vladimir Tenev: <unk>.

Speaker Change: Yes, I mean, echoing Jason this is a disappointing development.

Vladimir Tenev: We firmly believe U S consumers should have access to this asset class they deserve to be on equal footing with people all over the world.

Vladimir Tenev: And at the end of the day, we're going to defend the firm and continue to advocate for our customers.

Speaker Change: Alright, thank you.

Speaker Change: The next question is from Joseph C, who asks what are the new credit cards getting fully released seems that many are still on the waiting list glad you said that one yes, yes, I'll take that one thanks for the question.

Chris Koegel: And now we'll move on to questions. All right. Thank you, Vlad.

Speaker Change: And the product's looking right you might've noticed we've dropped the credit card app on the App store and we've rolled it out to the first customers outside of the company as we think about this rollout we really want to balance the desire to get the card to customers as quickly as we can with making sure that we're managing risk to the capital.

Vlad: Well as we enter a new market for us so.

Chris Koegel: We're starting with an initial group in the tens of thousands of customers over the next few weeks and then we're going to observe them carefully look at the data watch the spending activity and the borrowing activity and we're going to use that information to inform the broader rollout of the card, we really want to make sure that we're being very very prudent.

Speaker Change: We do this rollout since this is a new business line for the company.

Chris Koegel: For the Q&A session, we'll start by answering the top few shareholder questions from SAY Technologies, ranked by number of votes. We passed over questions that we had already addressed on this call or in prior quarters and grouped together questions that shared a common theme. After the SAY questions, we'll turn to live questions from our analysts. So we'll kick it off with our first question from SAY. Alexander M. asks, what impact will the SEC Wells notice have on the business? Jason, do you want to start on that one?

Speaker Change: Alright. Thank you Brad and then the third question from say is from Daniel who asks 24 hour market was halted how can we trust the platform.

Jason Warnick: Yeah, I'll maybe start and then Vlad can add some thoughts. First, for our customers, your accounts are not affected by this. It's business as usual for Robinhood Crypto. We're, of course, disappointed to have received the notice.

Jason Warnick: When markets become volatile what steps are being implemented to handle future volatility.

Jason Warnick: As you know, we've operated our crypto business in good faith. We've been very conservative in our approach in terms of the coins listed and services offered. And we're a highly regulated company and have applied the same legal and compliance standards we use for our brokerage to the way we run our crypto business. So it's disappointing to see more regulation by enforcement here, Vlad. Yeah, I mean, echoing Jason, this is a disappointing development. We firmly believe US consumers should have access to this asset class. They deserve to be on an equal footing with people all over the world.

Speaker Change: First it's really been awesome to see how much interest there is in our 24 hour market offering over $10 billion and volumes have transacted in the overnight session since it launched a year ago.

Vlad: And we now offer overnight trading in over 900 names.

Vlad: And really this is one of the core Differentiators of Robinhood, you don't find this type of offering.

Speaker Change: Elsewhere easily.

Vlad: As for wide trading was affected so.

Vlad: In order to facilitate these trades, we route to a third party Etfs.

Vlad: The Ats, we use went down for the evening this affected us, but also other firms that route to it.

Vlad: But the Ats was able to support trading again and a handful of ours looking ahead, we're really on the frontier with this offering.

Vlad: But as we continue to invest in it the offering will improve over time and it will get more resilient.

Vlad: So <unk>.

Vlad: Believe us when we say that we're committed to making sure this offering is reliable.

Vlad: Reliable and more feature rich going forward.

Speaker Change: Alright. Thank you Brad that concludes our shareholder questions from say technologies. We appreciate our shareholders taking the time to ask these questions, Brian Jason and look forward to more next quarter now I will turn the call over to rich wanted to lead Q&A from analysts. Thank.

Vladimir Tenev: And then the third question from Daniel R, who asked, "24 hour market was halted. How can we trust that the platform when markets become volatile? What steps are being implemented to handle future volatility?" First, it's really been awesome to see how much interest there is in our 24 hour market offering. Over 10 billion volumes have been transacted in the overnight section since it launched a year ago, and we now offer overnight trading in over 900 names.

Speaker Change: Thank you, ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone and wait to hear your name announce limit yourself to one question and then you may jump back into the queue.

Vladimir Tenev: To withdraw your question. Please press star one again.

Vladimir Tenev: Please standby, while we compile the Q&A roster.

Vladimir Tenev: Our first question comes from the line of Devin Ryan with citizens JMP. Your line is open.

Speaker Change: Hey, Thanks, so much <unk> hi, Jason how are you.

Vlad: Hey, Devin.

Speaker Change: One asked a question on <unk>.

Vladimir Tenev: The growth in new deposits I mean, just really impressive momentum there and good to hear.

Vladimir Tenev: Second quarter's accelerating further.

Speaker Change: It feels like you're just scratching the surface on gold adoption I think flat as we've talked about it and.

Speaker Change: And I also think the offering really stands out in the market. So with that said I heard Jason's comments on better <unk> for gold customers, but is it possible to kind of Simplistically unpack the economics youre expecting.

Vladimir Tenev: On new deposits coming in too.

Vladimir Tenev: Our gold connected account under these new promotions relative to <unk>.

Vladimir Tenev: Deposits that arent or even kind of like revenue.

Vladimir Tenev: For assets under kind of the model prior to these promotions I'm just trying to think about the economics.

Vladimir Tenev: Net.

Speaker Change: Coming in because it seems like Youre seeing a really nice acceleration there. Thank you.

Vladimir Tenev: Yes, Thanks, Devin it's Jason I'll go ahead and take that so in short we love the economics of the match promotions that we've been running I think I said last quarter.

Vladimir Tenev: The payback on the 1% match.

Vladimir Tenev: He is a little under a year and on the 3% match.

Vlad: It's between two and three years and we're watching that closely kind of on a monthly cohort basis with our customers. We're seeing the 2023 cohorts already paying off.

Vlad: And 2024 is off to a great start.

Vladimir Tenev: We mentioned on our prepared remarks to that.

Vladimir Tenev: The strength of net deposits, 44% annualized growth rate.

Vladimir Tenev: Is really well diversified between customers that have been at the company for a bit of Robin Hood for over a year.

Vladimir Tenev: Representing 75% of those deposits.

Vladimir Tenev: And we're also seeing that 75% cut a different way are unrelated to the promotion. So really strong promotion response, but but it's only a small part of the strength of the overall deposits.

Speaker Change: For the quarter.

Vlad: Thank you.

Chris Koegel: That concludes our shareholder questions from State Technologies. We appreciate our shareholders taking the time to ask these questions of Vlad and Jason and look forward to more next quarter. Now I'll turn the call over to Juana to lead Q&A for Maryland. Thank you. Ladies and gentlemen, as a reminder to ask a question, please press star 11 on your telephone and then wait to hear your name announced, limit yourself to one question, and then you may jump back into the, To withdraw your question, please press star 11 again.

Speaker Change: Please standby for our next question.

Juana: Our next question comes from the line of Dan to lead with Mizuho. Your line is open.

Devin Patrick Ryan: Hey, guys. Thank you for taking my question great Great results out there really really nice thanks, Dan.

Devin Patrick Ryan: Hey Devin, I want to ask you a question about the growth in new deposits. I mean, just really impressive momentum there. And it's good to hear the second quarter is accelerating further. And it feels like you're just scratching the surface on gold adoption. I think a lot of what you talked about, and I also think the offering really stands out in the market. So, you know, with that said, I heard Jason's comments on better ARPU for gold customers.

Operator: Yeah.

Devin Patrick Ryan: Of course, yes.

Devin Patrick Ryan: Yes. So you mentioned some really strong numbers in April really strong momentum can you maybe elaborate a little more regarding the momentum that youre seeing heading into the second quarter. Some any any color an additional view.

Speaker Change: Views on the momentum will be greatly appreciated. Thank you, yes, yes, absolutely Dan.

Devin Patrick Ryan: But is it possible to kind of simplistically unpack the economics you're expecting on new deposits coming in to a gold-linked account under these new promotions relative to deposits that aren't or even kind of like revenue per asset under the model prior to these promotions? I'm just trying to think about the economics of dollars coming in because it seems like you're seeing a really nice acceleration there. Thank you. Yeah, thanks, Devin and Jason. I'll go ahead and take that.

Speaker Change: So we're seeing strong trading across equities options in crypto.

Speaker Change: <unk> and into.

Speaker Change: Into the next quarter.

Speaker Change: We're seeing strength kind of across the business as well in terms of new.

Speaker Change: New gold subscribers, we mentioned and you mentioned the strength in net deposits nearly $5 billion.

Speaker Change: So we're really seeing.

Speaker Change: Great diversity of the strength retirement assets are now crossing over $7 billion, which is just remarkable growth and we love to see our customers saving for the long term with us.

Devin Patrick Ryan: Sure.

Speaker Change: Our metrics I think next week on the month of April and so Youll get a fuller picture there, but it's really across the board, whether its SEC lending or trading or.

Speaker Change: Net deposits.

Speaker Change: And I would just add.

Speaker Change: We're of course excited about the Q1 performance and the start to Q2.

Devin Patrick Ryan: So, in short, we love the economics of the match promotions that we've been running. I think I said last quarter that the payback on the 1% match is a little under a year, and on the 3% match, it's between two and three years.

Speaker Change: Well I think we have some medium and longer term tailwind to the business.

Speaker Change: <unk> benefits that we announced in March, including the 1% deposit match, which really has resonated quite strongly with customers based on early feedback has yet to launch.

Jason Warnick: And we're watching that closely, kind of on a monthly cohort basis with our customers. We're seeing the 2023 cohorts already paying off, and 2024 is off to a great start.

Speaker Change: We're entering a new product category with the credit card and we've also been.

Jason Warnick: Working on our futures and <unk>.

Jason Warnick: <unk> pro product for active traders and we.

Jason Warnick: You know, we mentioned in our prepared remarks that, you know, the strength of net deposits 44% annualized growth rate is really well diversified between customers that have been at the company for a bit of Robinhood for over a year, representing 75% of those net deposits. And we're also seeing that 75% are cut in a different way, are unrelated to the promotion. So really strong promotion response, but it's only a small part of the strength of the overall deposits for the quarter.

Jason Warnick: We hear you get an early look at the products that we're building and the teams have been working incredibly hard to make.

Jason Warnick: What we believe are incredibly polished products that we're very excited about so I think we.

Jason Warnick: We contend we tend to get excited about things on a quarterly basis, but we're running this business for the long term and I think that.

Jason Warnick: Youll see a lot more from us.

Speaker Change: Thank you.

Jason Warnick: Thank you. Please stand by for our next question. Our next question comes from the line of Dan Dolev. Missouhou, your line is open. Okay, guys, thank you for taking my question. Great, great results out there. Really, really nice.

Speaker Change: Please standby for our next question.

Dan Dolev: Our next question comes from the line of Stephen Ju Bank with Wolfe Research. Your line is open.

Dan Dolev: Hi, good afternoon, good afternoon, Jason.

Dan Dolev: Hello, Steven.

Jason Warnick: So we're seeing strong trading across equities, options, and crypto, you know, continuing into the next quarter. We're seeing strength kind of across the business as well in terms of new gold subscribers. We mentioned, and you mentioned, the strength in net deposits, nearly five billion. So, you know, we're really seeing great diversity of the strength. Retirement assets are now crossing over seven billion, which is just remarkable growth.

Dan Dolev: Yes, so I wanted to start off with a question just on the incremental margin ex SBC coming in at 75% certainly a good outcome as we think about the incremental profitability as the business scales is that 75% bogey.

Jason Warnick: <unk> expectation for investors to underwrite and just trying to gauge whether there is room for even further operating leverage or upside given the marketing spend was actually relatively elevated in the quarter as well.

Jason Warnick: And we love to see our customers saving for the long term with us. We're going to share our metrics, I think, next week for the month of April. And so you'll get a fuller picture there. But it's really across the board, whether it's SEC lending or trading or net deposits. Yeah, and I would just add.

Speaker Change: Yes. Thanks for the question, so we're not providing guidance necessarily on incremental margins, but I would tell you is.

Speaker Change: I've said in previous.

Jason Warnick: Sessions that about 90% of our cost structure is fixed meaning the 10% of our costs are variable relative to the activity of our platform. So that gives us a lot of opportunity to drop.

Jason Warnick: Incremental revenue to the bottom line.

Jason Warnick: Seeing this year make a really big step up in marketing about $100 million year over year as our plan to spend in marketing versus last year.

Jason Warnick: <unk>.

Speaker Change: Glad with touching on in Alaska.

Jason Warnick: The last question, we're making a lot of investments and not sitting still and we even with all of this step up in marketing and investments for growth we're delivering.

Jason Warnick: Rental margins at 75%. So we feel really good about that we're going to continue to watch our costs.

Jason Warnick: Excited to see revenue per employee crossover 1 million I think that there's a lot of opportunity to expand margins going forward.

Jason Warnick: Okay.

Speaker Change: Thank you.

Speaker Change: Please standby for our next question.

Jason Warnick: Our next question comes from the line of Calvert with <unk>. Your line is open.

Speaker Change: Hi, Good evening. Thanks for taking my question, maybe just a question on the gold card obviously, the offering is very compelling and great to see the demand with the weightless said over 1 million users already.

Vladimir Tenev: We're, of course, excited about the Q1 performance and the start to Q2. Well, I think we have some medium and longer-term tailwinds for the business. The gold benefits that we announced in March, including the 1% deposit match, which really has resonated quite strongly with customers based on early feedback, have yet to launch.

Speaker Change: Just wondering if you could expand upon the expected economics a bit <unk>.

Vladimir Tenev: Noticed that $300 <unk> previously, but that was for <unk> with a relatively small subset of users that you ultimately ramp too with this offering and just given how attractive the park might be for some more trans actor types.

Vladimir Tenev: There was some carry a balance are you still confident in your ability to profitably monetize a broad range of potential new clients.

Speaker Change: And then if I can just add a second part of that question can you give us any flavor on what you might expect from the transaction revenue side for the offerings, specifically I'm, assuming maybe some level of a headwind after netting out interchange and your warrants, but wondering if you can kind of frame that thank you. Yeah. Yeah. You bet. Thanks, Thanks for the questions. Jason I'll go ahead and take that.

Vladimir Tenev: So I think we tend to get excited about things on a quarterly basis, but we're running this business for the long term. And I think that you'll see a lot more from us. Thank you.

Vladimir Tenev: The first point I'd make on the credit card is that we think it is really strategically aligned with our vision that we want to.

Steven Joseph Chubak: Please stand by for our next question. Our next question comes from the line of Steven Chubak with Wolf Research. Your line is open. Hi, good afternoon, Vladeka.

Vladimir Tenev: To serve all of our customers' assets and process all of their financial transactions and having a great value.

Steven Joseph Chubak: Hello, so I wanted to start off with a question just on the incremental margin excess VT coming in at 75%, certainly a good outcome. As we think about the incremental profitability as the business scales, is that 75% bogeyman a reasonable expectation for investors to underwrite? And just trying to gauge whether there's room for even further operating leverage or upside given the marketing spend was actually relatively elevated in the quarter. Yeah, thanks for the question.

Steven Joseph Chubak: <unk> card I think is really fundamental to that.

Speaker Change: To that vision.

Jason Warnick: So we're not necessarily providing guidance necessarily on incremental margins. What I can tell you is, as I've said in previous sessions, that about 90% of our cost structure is fixed, meaning that 10% of our costs are kind of variable relative to the activity of our platform. So that gives us a lot of opportunity to drop, you know, incremental revenue to the bottom line. You're seeing us this year make a really big step up in marketing. About 100 million dollars year over year is our plan to spend on marketing versus last year.

Steven Joseph Chubak: That said, we need to do this in a prudent way and in a way that makes sense economically for the company and on that point I think that we've got a few things that are going to benefit us.

Jason Warnick: And, you know, as Vlad touched on in the last question, we're making a lot of investments and not sitting still. And even with all this step up in marketing and investments for growth, we're delivering, you know, incremental margins at 75%. So we feel really good about that.

Jason Warnick: We're going to continue to watch our costs. I'm excited to see revenue per employee cross over 1 million. You know, I think that there's a lot of opportunity to expand margins going forward. Thank you.

Jason Warnick: First of all we're going to be able to leverage our scale.

Jason Warnick: We're seeing that already play out.

Jason Warnick: With a low CAC.

Kyle Kenneth Voigt: Please stand by for our next question. Our next question comes from the line of Kyle Voigt with KBW. Your line is open. Hi, good evening.

Jason Warnick: We have over 1 million customers on the wait list was essentially.

Kyle Kenneth Voigt: No marketing dollars against that and when you look at <unk>.

Kyle Kenneth Voigt: Competitors Theyre spending several hundred dollars, perhaps $500 per customer to acquire a customer and so we really love the low the low CAC opportunity too.

Kyle Kenneth Voigt: That leverages our platform.

Kyle Kenneth Voigt: We're also able versus X one to get even better economics.

Kyle Kenneth Voigt: For example cost of funds, we've already been able to improve by over 300 basis points because of our strong balance sheet and because of our strength in.

Kyle Kenneth Voigt: The financial results and so those are a couple of areas that I'd point out.

Kyle Kenneth Voigt: And then thirdly, I would say that we have an opportunity to benefit because of our deeper relationship with customers, it's going to help us understand better.

Kyle Kenneth Voigt: The customers that we are underwriting.

Kyle Kenneth Voigt: And make better decisions and over time have an opportunity to offer.

Kyle Kenneth Voigt: Collateralized cards, which would also help with our economics.

Kyle Kenneth Voigt: As flat I'll, just finish with glad pointed out.

Speaker Change: We're going to be really careful and prudent here.

Jason Warnick: We're rolling it out to tens of thousands of customers.

Jason Warnick: And we're going to take months to look at.

Jason Warnick: How our customers are responding and how they're using the card they are borrowing and repayment activity and we're going to use that to inform a broader rollout and.

Jason Warnick: The last point I would make is two thirds of our customers.

Jason Warnick: Our prime or higher in terms of credit credit rating and so we do have a high quality customer base and so together with the prudent rollout and the high quality customers.

Jason Warnick: And benefiting from our scale and our deeper relationships with customers. We think we can land.

Jason Warnick: We're going to be really careful and prudent here. You know, we're rolling it out to tens of thousands of customers, and we're going to take months to look at how our customers are responding, how they're using the card, their borrowing and repayment activity, and we're going to use that to inform our broader rollout. And, you know, the last point I would make is that two-thirds of our customers are prime or higher in terms of credit rating, and so we do have a high-quality customer base. And so, together with the prudent rollout and the high-quality customers, and benefiting from our scale and our deeper relationships with customers, we think we can land a good economic outcome for Robinhood. Thank you.

Jason Warnick: A good economic outcome for Robin Hood.

Speaker Change: Thank you.

Michael J. Cyprys: Please stand by for our next question. Our next question comes from the line of Mike Cyprys with Morgan Stanley. Your line is open. Hey, good evening.

Speaker Change: Please standby for our next question.

Michael J. Cyprys: Our next question comes from the line of Mike <unk> with Morgan Stanley. Your line is open.

Michael J. Cyprys: Hey, good evening. Thanks for taking the question I just wanted to ask about capital allocation, hoping you could update us just around your latest thoughts there with $5 billion of balance sheet cash and investments just curious how youre thinking about the appetite for dividends buybacks M&A.

Michael J. Cyprys: Thanks for taking the question. I just wanted to ask about capital allocation. Hopefully, you could update us on your latest thoughts there with 5 billion of balance sheet cash and investments. Just curious how you're thinking about the appetite for dividends, buybacks, and M&A, where M&A could be most additive at this point, given you just added on the card platform side, and then just on M&A, maybe just remind us of your hurdle rates and criteria there. Thank you. Yeah, thanks, Mike.

Michael J. Cyprys: M&A could be most additive at this point given you've just added on.

Michael J. Cyprys: Card platform side, and then just on M&A, maybe just remind us of your hurdle rates and criteria there. Thank you.

Speaker Change: Yes, Thanks, Mike.

Jason Warnick: We love the strong balance sheet over $5 billion of.

Jason Warnick: Of corporate cash.

Jason Warnick: Three ways.

Jason Warnick: To use the capital to the benefit of shareholders one is invest.

Jason Warnick: Investing in our business for organic growth and Youre seeing us.

Jason Warnick: Do that with the incremental investments for growth, including the $100 million step up in marketing this year.

Jason Warnick: The second is M&A, you've seen us recently acquire X one we have.

Jason Warnick: Sorry active.

Jason Warnick: Corp, Dev team and we're looking at.

Jason Warnick: Several opportunities there.

Jason Warnick: That can either augment our team and the talent of our team.

Jason Warnick: Or accelerate our product roadmap and.

Jason Warnick: Nothing to announce but the team is certainly.

Jason Warnick: Active and then the last category is returning capital to shareholders you saw us do that.

Jason Warnick: Last year in the third quarter about $600 million to two.

Jason Warnick: <unk> to purchased 5% of our outstanding shares.

Jason Warnick: And so we're deploying capital kind of across all three.

Jason Warnick: In terms of.

Jason Warnick: Hurdle rates, you would expect us to use our cost of capital at least in and we're mindful of that and.

Jason Warnick: And.

Jason Warnick: Nothing nothing further to update you now on capital allocation is something that we are.

Jason Warnick: Kind of constantly looking at.

Speaker Change: Thank you.

John Todaro: Please stand by for our next question. Our next question comes from a line John Todaro with Needleman Company. Your line is open. Hey, great.

Speaker Change: Please standby for our next question.

John Todaro: Our next question comes from the line of John <unk> with Needham <unk> Company. Your line is open.

John Todaro: Thanks for taking my question. And yeah, great results here. Yeah, of course, the crypto side of the business, post the wealth notice, and just kind of get a little bit more color on what you're thinking. And I guess, in particular, If you look at it and you go, hey, we're kind of almost being treated the same way as Coinbase, does it start to make sense to look at more broader listings, because you guys have been fairly conservative on that front? Or is that not really a fair way?

John Todaro: Hey, great. Thanks for taking my question.

John Todaro: Yes, great results here I guess.

John Todaro: Just trying to understand.

John Todaro: Yeah of course, the crypto side of the business post the wells notice.

John Todaro: Trying to get a little bit more color on what youre thinking.

John Todaro: And I guess in particular.

John Todaro: If you look at it and you go Hey, we're kind of almost being treated the same way as clean base.

John Todaro: Does it start to make sense, where you look at more broader listings because you guys have been fairly conservative on that front or is that not really a fair way to think about it.

Vladimir Tenev: Yeah, I think you're right in that we've been extremely selective about the assets that we offer on the platform. I mentioned in my prepared remarks that we have seen increases in volumes and in market share on the crypto side. I think for a long time we were offering customers great prices on purchasing crypto assets, but we weren't doing a great job of communicating that, and now we are communicating it through the user interface and through all sorts of marketing services.

Speaker Change: Yes, I think youre right in that we've been extremely selective about the assets that we offer on the platform.

Vladimir Tenev: I mentioned in the prepared remarks that we have seen increases in volumes and in market share on the crypto side I.

Vladimir Tenev: Through all sorts of marketing surfaces.

Vladimir Tenev: And I think customers are starting to pick up on that fact. You're seeing it talked about more on social media, just how great of a deal they're getting on crypto transactions. And we're expanding in the EU, where we, again, believe that we can provide great service and great offerings to customers. So the crypto team's been working tremendously hard. The roadmap there is quite full.

Vladimir Tenev: We're expanding in the EU, where we again believe that we can provide great service and great offerings to customers. So the crypto team's been.

Vladimir Tenev: Working tremendously hard the roadmap there.

Vladimir Tenev: There is quite full and there's a lot to do to make the products.

Vladimir Tenev: There's a lot to do to make the product experience better for customers, and I would just add that, you know, we've been incredibly selective in the coins that we've listed and are confident that the coin selection does not include any better securities, and we continue to apply that high standard to anything that we would list on our platform. Thank you.

Vladimir Tenev: Experience better for customers.

Vladimir Tenev: And I would just add that we've been incredibly selective and the coins that we've listed.

Vladimir Tenev: And are confident that the coin selection does not include any of that or securities and we continue.

Vladimir Tenev: To apply that high standard on anything that we would list on our platform.

Speaker Change: Thank you.

Brian Bertram Bedell: Please stand by for our next question. Our next question comes from Alana Brian Bedell with Dutcher Bank. Your line is open. Great. Thanks. Good evening.

Speaker Change: Please standby for our next question.

Speaker Change: Our next question comes from the line of Brian <unk> with Deutsche Bank. Your line is open.

Brian Bertram Bedell: I'm just saying on the crypto theme, maybe, Vlad and Jason, if you could talk about just the nature of the surge in crypto volumes in March, and I think you said April was at $10 billion. I appreciate, of course, this is a very volatile class, but maybe if you could just talk about what you're seeing that drove that heavy activity in March and whether you think, you know, we could see spikes like that again. And then there is just the mix of crypto volumes between the EU and US. Maybe the EU is still very small, but I'm just trying to get a sense of that.

Speaker Change: Alright, great. Thanks, good evening.

Brian Bertram Bedell: Maybe just seeing on the crypto theme maybe Jason.

Brian Bertram Bedell: Jason If you can talk about just the nature of the surgeon and crypto volumes and margin.

Brian Bertram Bedell: You said April was that $10 billion I. Appreciate of course this is very volatile.

Brian Bertram Bedell: Class, but maybe if you can just talk about what youre seeing.

Brian Bertram Bedell: Drove that heavy activity in March and whether you think we could see spikes like that again and.

Brian Bertram Bedell: And then just the mix of.

Brian Bertram Bedell: Crypto volumes between the two.

Brian Bertram Bedell: The EU and U S is maybe the EU is still very small, but just just trying to get a sense of that.

Vladimir Tenev: Yeah, I mean, in terms of what drives crypto volumes, I think Modulo, our market share gains, and our crypto activity does track the broader market. I don't really want to get into prognosticating what the crypto market is going to do, though that's obviously a difficult thing for anyone to do.

Speaker Change: Yes, I mean in terms of.

Vladimir Tenev: What drives crypto volumes I think modulo our market share gains are crypto activity does track the broader market.

Vladimir Tenev: Yes.

Vladimir Tenev: I don't really want to get into prognosticating, what the crypto market is going to do that's obviously.

Vladimir Tenev: A difficult thing for anyone to do it's a global market. There have been Etfs approved does as you all know.

Vladimir Tenev: And that's why we look at market share and how were doing relative to peers because markets go up and down.

Vladimir Tenev: But if our market share is growing throughout all conditions, then over the long run we.

Vladimir Tenev: We will do very very well on that side of the business.

Vladimir Tenev: And thats kind of our approach across all the asset classes for the active trader business.

Vladimir Tenev: But the goal is also to diversify the business. So that we're sort of like less reliant on <unk>.

Vladimir Tenev: Volumes anywhere in any one category to drive business results I think that's kind of what youre starting to see in this quarter's results it's really.

Vladimir Tenev: The performance of the company across all asset classes, and even across wallet share with the <unk>.

Vladimir Tenev: Net deposit growth numbers in terms of the mix element of your question on Europe, you're right.

Vladimir Tenev: Still a relatively modest.

Vladimir Tenev: Contribution the lion's share came from our U S crypto business, but.

Vladimir Tenev: But we like what we're seeing in tens of thousands of customers. There. So we'll continue investing there.

Speaker Change: Thank you.

Vladimir Tenev: The lion's share came from our U.S. crypto business, but we like what we're seeing and tens of thousands of customers there, so we'll continue investing there. Please stand by for our next question. Our next question comes from Alana Patrick Moley with Piper Sandler. Your line is open. Yes, good evening.

Vladimir Tenev: Please standby for our next question.

Patrick Malcolm Moley: Thanks for taking the question. So I just had one on index options. I see it's referenced in the deck, but I didn't hear it mentioned in the prepared remarks.

Speaker Change: Our next question comes from the line of Patrick <unk> with Piper Sandler Your line is open.

Speaker Change: Yes, good evening, thanks for taking the question.

Patrick Malcolm Moley: So I just had one on index options.

Patrick Malcolm Moley: Could be Cannibalized by index options and if you do when you do roll it out have you given any thought to potentially charging a commission on.

Speaker Change: Index options. Thanks.

Speaker Change: Yeah. So we have announced that we're going to be launching index options. This is part of the.

Patrick Malcolm Moley: The overall goal of giving our active traders access to the best tools and the best value for.

Patrick Malcolm Moley: Their services so index options are coming in Q4.

Patrick Malcolm Moley: We'll also be launching futures.

Vladimir Tenev: As we've mentioned in the past.

Vladimir Tenev: And as with any new robinhood product.

Vladimir Tenev: There's two areas, where wed like to stand out in.

Vladimir Tenev: Yeah, the economics we intend to make very, very competitive but also profitable for the company on a segment basis. So, Jason, I don't know if you want to add anything more specific there. Yeah, we're still working with the team on the pricing structure for index options, so we'll have to stay tuned there. But I agree with Vlad that we want it to be great value for customers and also make a lot of sense for us economically. And we should note, you know, index options trade around the clock, which is one of the reasons why they have become so popular. So, we don't anticipate seeing a ton of cannibalization there.

Vladimir Tenev: Yes, the economics, we intend to make very very competitive but also.

Vladimir Tenev: Profitable for the company on a segment basis, So Jason I don't know if that were to add anything more specific there, yes, we're still working with the team on the on the pricing structure for index options. So we'll have to have to stay tuned there, but agree with flat that we want it to be a great value for customers and also make a lot of sense for us.

Speaker Change: Obviously, and we should note index options trade.

Vladimir Tenev: Round, the clock, which is one of the reasons why they become so popular so we.

Jason Warnick: We don't anticipate seeing a ton of cannibalization there.

Speaker Change: Thank you ladies.

Jason Warnick: Thank you. Please stand by for our next question. Our next question comes from the line of Matthew O'Neill with FT Partners. Your line is open. Yeah, thanks so much for taking my question. A lot of good ones asked and answered already.

Speaker Change: Please standby for our next question.

Matthew O'Neill: Our next question comes from the line of Matthew O'neill with Ft Partners. Your line is open.

Matthew O'Neill: I was wondering though, since we are seeing such a clear inflection point in the MAUs, and you gave some incremental details around the growth there from CARD, both gold and non-gold, sounds like a half a million. Could you help parse maybe the rest of the monthly activities or growth, you know, even just anecdotally, like more crypto focused or more options and equity focused? Yeah, absolutely. You know, there is an impact on MAUs when crypto interest surges, and we saw that in the quarter.

Matthew O'Neill: Yes, hi, guys. Thanks, so much for taking my question a lot of good ones asked and answered already I was wondering now.

Matthew O'Neill: As you are seeing such a clear inflection point may use.

Matthew O'Neill: And you gave some incremental details around the growth there from card both golden non goal it sounds like a half a million. Each can you help parse maybe the rest of the monthly active user growth.

Matthew O'Neill: Even just anecdotally like more crypto focused or more options and equity okay. Thanks.

Speaker Change: Yes, absolutely.

Matthew O'Neill: There is.

Matthew O'Neill: And impact may use win with crypto.

Matthew O'Neill: Interest surges and we saw that in the quarter and so that's certainly a part of it but when I look at the activity across the quarter. It was very broad based.

Matthew O'Neill: And so that's certainly a part of it. But when I look at the activity across the quarter, it was very broad-based, you know, equities, you know, up, options, activity, certainly crypto, retirement, gold numbers, net deposits. And so we really saw an overall lift that was reflected in the engagement numbers that you're seeing. Great, thank you.

Matthew O'Neill: Equities.

Matthew O'Neill: Up.

Matthew O'Neill: Options activity, certainly crypto retirement gold members.

Matthew O'Neill: Net deposits and so we really saw an overall lift that was reflected in the engagement numbers that youre seeing.

Speaker Change: Great. Thank you.

Matthew O'Neill: Okay.

Speaker Change: Thank you.

Matthew O'Neill: Thank you. Please stand by for our next question. Our next question comes from the line of Ken Worthington with J.P. Morgan. Your line is open. Hi, good afternoon.

Speaker Change: Please standby for our next question.

Matthew O'Neill: Our next question comes from the line of Ken Worthington with Jpmorgan. Your line is open.

Kenneth Brooks Worthington: Thanks for taking the question. When we look at your promotions, hi, we look at your promotions, they seem focused on gathering additional customer assets. Do you think such asset-focused promotions could endure over the intermediate term or even longer term as a business strategy? Any reasons why the competition might not either be able to or just might not follow you with promotions of their own? And as we think about, you know, other behaviors you want to target, are there others that promotions might make sense for you to target at some point? Yeah, I can. I can start with that.

Kenneth Brooks Worthington: Hi, good afternoon, thanks for taking the question.

Speaker Change: When we look at your pay question Hi, when you're looking at promotions they seem focused on.

Speaker Change: Gathering additional customer assets.

Kenneth Brooks Worthington: Zinc such asset focused promotions could enter.

Kenneth Brooks Worthington: The intermediate term or even longer term as a business strategy.

Speaker Change: Any reasons why the competition might not either be able to or just might not follow you with promotions of of their own.

Speaker Change: And as we think about.

Kenneth Brooks Worthington: Other behaviors you want to target are there others that promotions might make sense for you to target.

Speaker Change: At some point in the future.

Speaker Change: Yes, I can I can start with that.

Vladimir Tenev: I think the first thing I should note is we've invested in building a strong data science and product analytics capability from inception, and the company and I think thats starting to become a key differentiator now that AI is becoming more and more important than now that we started running these.

Vladimir Tenev: <unk>.

Vladimir Tenev: <unk> for the 1%.

Vladimir Tenev: We feel really good about the offering and.

Vladimir Tenev: You should see more creativity from from the team going forward I don't think that we've fully excavated what we can do with this.

Vladimir Tenev: This capability that we built.

Vladimir Tenev: Ken We'd love that we're taking share we love it we're winning assets against the.

Vladimir Tenev: The incumbents.

Vladimir Tenev: And in terms of your question about, you know, how durable it is in the medium to longer term, I don't see any reason why, with our highly scalable platform, we can't continue to offer promotions like that, especially with the attractive paybacks that we're realizing. On your question about whether it's something that could be copied by competitors, you know, I think we could all come up with a handful of reasons why it would be challenging for them, whether it's their cost structure or just their installed base and defending that through a promotion like that.

Vladimir Tenev: And in terms of your question about.

Vladimir Tenev: How durable it is in the medium to longer term I don't see any reason with our.

Vladimir Tenev: Highly scalable platform that we can't continue to offer promotions like that especially with the attractive paybacks that were.

Vladimir Tenev: That we're realizing.

Vladimir Tenev: On your question about whether it's something that could be copied by competitors.

Vladimir Tenev: I think we can all come up with.

Vladimir Tenev: But we love the promotions here at Robinhood, and again, we like that we're taking a share. Thank you. Will you stand by for our next question? My next question comes from the line of Benjamin Budish with Barclays. Your line is open.

Benjamin Elliot Budish: Here at Robinhood, and and again, we like that we're taking share.

Benjamin Elliot Budish: Thank you.

Benjamin Elliot Budish: Please standby for our next question.

Benjamin Elliot Budish: Our next question comes from the line of Benjamin <unk> with Barclays. Your line is open.

Benjamin Elliot Budish: Hi, good evening and thanks for taking the question.

Benjamin Elliot Budish: Just on the topic of competition you highlighted that 25% of net transfers came from other brokerages can you just talk about like this customer cohort how do they compare to your existing customer base are they coming are you seeing any behaviors are they coming for the highest savings really becoming for the deposit bonus are they active traders and the engagement crypto like any kind of characteristics of this cohort are the are there.

Benjamin Elliot Budish: How do they compare to your pre-existing customer base? Are they coming, you know, are you seeing any behaviors? Are they coming for the high savings rate? Are they coming for the deposit bonus? Are they active traders? Are they engaging in crypto? Like any kind of characteristics of this cohort, are they similar or different from sort of like the existing customer base? They're probably more similar than different.

Benjamin Elliot Budish: Similar different from sort of like the existing customer base. Thank you.

Jason Warnick: One of the things that I'd highlight is they come in with average balances that are much higher than our typical, you know, historical customer. So I love the quality of the assets being brought in and the activity of the customers. And it's really reflected, too, in the comments that we're making about payback periods on these promotions, that, you know, we are seeing customers engage with our products in a way that generates revenue for us. Thank you. I'm showing no further questions in the queue.

Benjamin Elliot Budish: There are probably more similar than different one of the things that I'd highlight is they're coming in with average balances that are much higher than our typical.

Jason Warnick: Historical customer so.

Jason Warnick: Loving the quality of the assets being brought in.

Jason Warnick: And the activity of the customers and its and its really reflected to in the comments that we're making about payback periods on these promotions that we are seeing.

Jason Warnick: Customers engage with our products.

Jason Warnick: In a way that generates revenue for us.

Speaker Change: Thank you.

Jason Warnick: I'm showing no further questions in the queue I would now like to turn the call back over to Vlad for closing remarks.

Vladimir Tenev: I would now like to turn the call back over to Vlad for closing remarks. Thank you, guys, for all the questions. And look, we love the quarter, and we love where the business is heading. I think that, long term, we're really positioning Robinhood to be a generational company that will benefit from a generational wealth transfer that is only starting now, from older generations to Gen X and millennials. And the goal over the long run is for all of our customers, all their assets should be custodyed at Robinhood, and all of their financial transactions should go through Robinhood.

Vladimir Tenev: And I think you're starting to see us make significant progress towards that. So thank you for being with us on the call and on the journey. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Vlad: Alright, Thank you guys for all the questions.

Vladimir Tenev: Look we love the quarter, we love, where the business is heading I think that long term, we're really positioning robinhood to be.

Vladimir Tenev: A generational companies that will benefit from a generational wealth transfer that is only starting now from older generations to Gen X and millennials and.

Vladimir Tenev: The goal over the long run is for all of our customers all of their assets should be custody at robinhood and all of their financial transactions should go through Robinhood and I think youre starting to see us make significant progress towards that so thank you for being with us on the call and on the journey.

Vladimir Tenev: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

Q1 2024 Robinhood Markets Inc Earnings Call

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