Report Highlights:
- Robinhood reached its peak of over 21 million Monthly Active Users in early 2021.
- The active user count dropped from 17.3M in 2021 to 11.4M in 2022, marking a decline of 34.10% year-over-year.
- Total users surged from 12.5M in 2020 to 22.7M in 2021, an impressive year-over-year growth of 81.6%.
- Robinhood posted a net income of $0.025 billion in Q2 2023
Over the past five years, Robinhood has transitioned from a disruptive startup to a major player in the retail trading landscape.
It experienced highs like a surge in user growth to over 21 million Monthly Active Users at its peak in early 2021.
It has also faced challenges such as regulatory scrutiny, layoffs, and a decline in Monthly Active Users, but the company has continued to innovate by expanding its product offerings.
Robinhood Active Users
The active user count of Robinhood refers to the number of individuals who are currently using the platform and engaging in financial activities within a specific timeframe, such as daily, weekly, or monthly.
This metric provides insight into the immediate engagement and interaction of users with the platform’s services.
While the total user count encompasses all registered accounts, including those that might not be actively used.
| Year | Active Users | Change Y/Y |
|---|---|---|
| 2020 | 11.7M | – |
| 2021 | 17.3M | 47.86% |
| 2022 | 11.4M | -34.10% |
| 2023 | 11.8M | 3.51% |
Robinhood Total Users
The total user count of Robinhood refers to the collective number of individuals who have registered and created accounts on the Robinhood platform.
This metric reflects the size and reach of the platform’s user base, representing the community of people utilizing Robinhood’s services for various financial endeavors.
| Year | Users | Change Y/Y |
|---|---|---|
| 2020 | 12.5M | – |
| 2021 | 22.7M | 81.6% |
| 2022 | 22.9M | 0.88% |
Robinhood Valuation (Market Cap)
| Year | Valuation ($bn) | Change Y/Y |
|---|---|---|
| 2017 | 1.3 | – |
| 2018 | 5.6 | 330.77% |
| 2019 | 7.01 | 25.00% |
| 2020 | 11.7 | 67.14% |
| 2021 | 15.34 | 31.28% |
| 2022 | 6.80 | -55.67% |
| 2023 | 10.04 | 47.65% |
Robinhood Net Income
| Year/Quarter | Net Income ($B) | Change Y/Y |
|---|---|---|
| 2020 | 0.007 | -106.57% |
| 2021 | -3.687 | -52771.43% |
| 2022 | -1.028 | 72.12% |
| Q2 2023 | 0.025 | – |
Operating Data 2023
- GAAP Net Income and EPS: Robinhood reported a GAAP Net Income of $25 million and GAAP Earnings Per Share of $0.03, showing the company has moved from loss to profit compared to a net loss of $511 million in Q1 2023.
- Total Net Revenues: The company’s total net revenues for Q2 2023 increased by 10% sequentially, reaching $486 million. This is an important indicator of the company’s overall financial performance.
- Transaction-based Revenues: Transaction-based revenues decreased by 7% sequentially to $193 million. This could be a key area of concern given its direct link to the company’s core business activities.
- Monthly Active Users: Monthly Active Users decreased by 1 million sequentially, settling at 10.8 million. This is a critical metric for assessing user engagement and market penetration.
- Assets Under Custody: Increased by 13% sequentially to $89 billion, which is a crucial measure of the trust and engagement level of the platform’s users.
- Net Deposits: Net deposits for Q2 2023 were $4.1 billion, representing an annualized growth rate of 21%. This is a good indicator of customer trust and potential future revenues.
- Adjusted EBITDA: Rose by 31% sequentially to $151 million, and the EBITDA margin increased by 5 points to 31%. This shows an improvement in operational efficiency and profitability.
References