Blockchain
Robinhood Markets reports strong growth in May 2024 operating data
Robinhood Markets, Inc. (NASDAQ: HOOD) released its operating data for May 2024, showing robust growth across various metrics. Second Robinhood’s In the latest report, the financial services platform continues to see significant expansion in its customer base, assets under custody and trading volumes.
Customer and resource growth
The number of customers financed on the platform reached 24.1 million at the end of May, marking an increase of approximately 120,000 from April 2024 and a year-on-year increase of 960,000. Assets under custody (AUC) also saw a notable increase, reaching $135.0 billion, up 9% from April and 65% year-over-year. Net deposits in May were $3.6 billion, which translates to an annualized growth rate of 35% compared to April 2024 AUC. Over the trailing twelve months, net deposits were 29 $.4 billion, reflecting a 36% annual growth rate from May 2023 AUC.
Trading volumes and revenues
Notional equity trading volumes rose to $86.8 billion, a 23% increase from April 2024 and a 76% increase year-on-year. Options trading also saw growth, with 131.9 million contracts traded, up 4% from the previous month and 35% from the same period last year. However, notional cryptocurrency trading volumes have fallen by 30% since April to $7.1 billion, although this still represents a 238% increase year-on-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, up 10% from April and 45% year over year. Total cash 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 (DART) for the stock totaled 2.0 million, an 11% increase from April and a 33% increase year over year. Options DARTs remained stable at 0.8 million, while cryptocurrency DARTs fell 25% from April to 0.3 million, although this still represents a 50% increase year-over-year. Book margin closed at $4.5 billion, up 10% from April and 45% year over year. Additionally, the total liquidity balance saw an increase of 6% compared to April, reaching $20.3 billion.
Uncertified and preliminary data
It is important to note that the information provided in this release is unverified and is preliminary, based on Robinhood estimates. Final results for the latest fiscal quarter may vary from the information provided, as they are subject to the completion of financial close procedures.
Robinhood Markets, Inc. continues its mission to democratize finance for all. The company allows users to invest with no account minimums through Robinhood Financial LLC, a registered broker-dealer, and to buy and sell cryptocurrencies through Robinhood Crypto, LLC.
Image source: Shutterstock