Robinhood Markets Reports Strong Growth in May 2024 Operating Data

Robinhood Markets, Inc. (NASDAQ: HOOD) has released its operating data for May 2024, showcasing robust growth across various metrics. According to Robinhood's latest report, the financial services platform continues to experience significant expansion in its customer base, assets under custody, and trading volumes.

Customer and Asset Growth

The number of funded customers on the platform reached 24.1 million by the end of May, marking an increase of approximately 120,000 from April 2024 and a year-over-year increase of 960,000. Assets Under Custody (AUC) also saw a notable rise, reaching $135.0 billion, up 9% from April and 65% year-over-year. Net deposits for May were reported at $3.6 billion, translating to a 35% annualized growth rate relative to April 2024 AUC. Over the past twelve months, net deposits totaled $29.4 billion, reflecting an annual growth rate of 36% compared to May 2023 AUC.

Trading Volumes and Revenue

Equity notional trading volumes surged to $86.8 billion, a 23% increase from April 2024 and a 76% rise year-over-year. Options trading also experienced growth, with 131.9 million contracts traded, up 4% from the previous month and 35% from the same period last year. However, crypto notional trading volumes declined by 30% from April, settling at $7.1 billion, though this still represents a 238% increase year-over-year.

In terms of revenue, Robinhood's securities lending revenue reached $23 million in May, up 10% from April and 53% year-over-year. Margin balances at the end of May were $4.5 billion, a 10% increase from April and a 45% rise year-over-year. Total cash sweep balances also grew, reaching $20.3 billion, up 6% from April and 81% year-over-year.

Additional Metrics

Robinhood reported that its daily average revenue trades (DARTs) for equities stood at 2.0 million, an 11% increase from April and a 33% year-over-year rise. Options DARTs remained steady at 0.8 million, while crypto DARTs decreased by 25% from April to 0.3 million, though this still represents a 50% year-over-year increase. The margin book closed at $4.5 billion, up 10% from April and 45% year-over-year. Additionally, the total cash sweep balance saw a 6% increase from April, reaching $20.3 billion.

Unaudited and Preliminary Data

It is important to note that the information provided in this release is unaudited and preliminary, based on Robinhood’s estimates. The final results for the most recent fiscal quarter may vary from the information provided, as they are subject to the completion of financial closing procedures.

Robinhood Markets, Inc. continues its mission to democratize finance for all. The company allows users to invest without account minimums through Robinhood Financial LLC, a registered broker-dealer, and to buy and sell cryptocurrencies through Robinhood Crypto, LLC.