Robinhood Markets, Inc. has recently released its 10-K report, providing a detailed look into its financial and operational performance. The company, headquartered in Menlo Park, California, operates a financial services platform in the United States, offering users the ability to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. Additionally, Robinhood provides various learning and education solutions, including Snacks, Learn, Newsfeeds, and In-App Education, to help users understand the basics of investing before their first trade.
In the year ended December 31, 2023, Robinhood reported total net revenues of $1.87 billion, marking a 37% increase from the previous year. The company saw a net loss of $0.54 billion, or -$0.61 per share, compared to a net loss of $1.03 billion, or -$1.17 per share in the prior year. Operating expenses totaled $2.40 billion, a slight increase of 1% from the previous year, with stock-based compensation (SBC) expense amounting to $871 million, up by 33% from the previous year.
Key performance metrics for the relevant periods include: Funded Customers: 23.4 million in 2023, up from 23.0 million in 2022. Assets Under Custody (AUC): $102.6 billion in 2023, compared to $62.2 billion in 2022, marking a 65% increase. Net Deposits: $17.1 billion in 2023, with a growth rate of 27% relative to AUC, compared to $18.4 billion and a growth rate of 19% in 2022. Average Revenue Per User (ARPU): $80 in 2023, up by 33% from $60 in 2022. * Monthly Active Users (MAU): 10.9 million in December 2023, a decrease from 11.4 million in December 2022.
The company also provided a glossary of terms and detailed information about its non-GAAP financial measure, Adjusted EBITDA, which was reported as positive $536 million in 2023, compared to negative $94 million in 2022.
Robinhood's revenues are primarily driven by transaction-based revenues, which include amounts earned from routing customer orders for options, cryptocurrencies, and equities to market makers. The company receives consideration from market makers when customers place orders on its platform, with fees based on the type of asset being traded.
The market has reacted to these announcements by moving the company's shares 4.2% to a price of $16.25. Check out the company's full 10-K submission here.
