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

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

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

Vlad Tenev, CEO and Co-Founder of Robinhood

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

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

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

Source: Robinhood

Moves and Revenues

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

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

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

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

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

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

— Jevgenijs Kazanins (@jevgenijs) August 7, 2024

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

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