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.

Image
source:
Shutterstock

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