Vlad Tenev, CEO “We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs for Net Deposits and Gold Subscribers,” said Vlad Tenev, CEO and Co-Founder of Robinhood. “Q2 is off to a strong start with April being our highest month of the year for Net Deposits and Gold Subscriber growth, and we’re excited to see strong interest from over 1 million customers in our Robinhood Gold Card.”
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Overview
Another strong quarter for the company and my thesis remains intact. Vlad continues to everyone on planet earth to store all their wealth on his platform. He’s pulling out all the stops to get you to move over too.
You can find the full earnings deck release here.
You can find the financial reports here.
Highlights
Beat revenue estimate by $65.2M – 11.81%
Beat EPS estimate by $0.12 – 211%
Updated Vizual Summary Charts
Key Charts
Here’s what I like:
• Monthly active users having a nice uptick.
• Assets under custody really starting to pick up pace.
• Average revenue per customer also moving up nicely.
• Cash pile growing again.
• Still no debt.
• Net deposits are starting to fly higher. Huge move here.
• Gold subscriber accounts also picking up pace.
• Revenue higher than operating expenses. Will see if this holds next Q as we see the new products roll out. Suspect this might dip back.
Here’s what I don’t like:
• Estimates are looking a bit weak going forward, but they are bringing a lot of new products to the market. Generally this is a short term trade off. Revenue looks scheduled for lift off though. So if they can execute their plan, it should pay off in the end.
• SBC still high but continues to come down, but I’m clutching at straws here to find negative things to say.
Estimates and Guidance
Easily beatable estimates here.
Guidance – The 2024 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in their existing businesses. Taken together, they continue to expect both GAAP total operating expenses and Non-GAAP combined Adjusted Operating Expenses and SBC for full-year 2024 to be in the range of $1.85 billion to $1.95 billion.
Activity
Insiders love selling this but with such high SBC, it’s no surprise. They will get free stock regularly so why hold it? Would prefer this to change in the long run though. Short interest is also dropping, despite a small uptick in the last period. Institutional ownership continues to rise and flush out retail, I like that.
Balance Sheet Summary
The Charts
Not much fan fair given the numbers that Robinhood put up. Still one of the few stocks that hasn’t sold off post earnings release, so we can take that as a win. That seems to be the theme this month!
Would have expected a larger pop on these numbers and maybe a fade later on but that doesn’t bother me too much. I’m not day trading this stock. Price will open nicely above the volume shelf but could still sell off tomorrow. The market is a bit mental lately, best to let it shake it out of its system. If we get any discounts on this I would like to buy more.
Bonus Section
The pace of this company so far this year has been insane. With more to come it’s looking like a bright future.
Conclusion
Absolutely stellar earnings. The new products they are bringing to market makes me more bullish than I was when I started my position. Very excited to see what they can do. My thesis here is still very strong.
I probably should do a post just talking about the products they are launching, I’ll stick it on my to do list!
