Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today
announced financial results for the second quarter ended June 30,
2021.
- Total
net revenues increased 131% to $565 million in the
second quarter of 2021, compared with $244 million in the
second quarter of 2020.
-
Transaction-based revenues increased 141% to $451
million in the second quarter of 2021, compared with $187 million
in the second quarter of 2020.
- Options
increased 48% to $165 million in the second quarter of 2021,
compared with $111 million in the second quarter of 2020.
- Cryptocurrencies
increased to $233 million in the second quarter of 2021, compared
to $5 million in the second quarter of 2020.
- Equities
transaction-based revenue decreased 26% to $52 million in the
second quarter of 2021, compared with $71 million in the second
quarter of 2020.
- Loss
before income taxes was $464 million in the second quarter
of 2021, compared with income before taxes of $58 million in the
second quarter of 2020. Costs associated with the change in fair
value of convertible notes and warrant liability totaled $528
million in the second quarter of 2021.
- Net
loss was $502 million in the second quarter of 2021,
or $2.16 per diluted share, compared with net income of
$58 million, or $0.09 per diluted share in the second quarter
of 2020.
- Adjusted
EBITDA (non-GAAP) was $90 million in the second quarter of
2021, compared with $63 million in the second quarter of 2020.
- Net
Cumulative Funded Accounts increased 130% to 22.5 million
in the second quarter of 2021, compared with 9.8 million in the
second quarter of 2020.
- Monthly
Active Users (MAU) increased 109% to 21.3 million in the
second quarter of 2021, compared with 10.2 million in the second
quarter of 2020.
- Assets
Under Custody (AUC) increased 205% to $102 billion in the
second quarter of 2021, compared with $33 billion in the second
quarter of 2020.
- Average Revenues Per User
(ARPU) was $112 in the second quarter of 2021, compared
with $115 in the second quarter of 2020.
“We’re encouraged by the number of people who
are accessing the financial system for the first time through
Robinhood,” said Vlad Tenev, CEO and Co-Founder of Robinhood.
“We’re happy to expand access through products like commission-free
crypto trading, which saw strong growth this quarter among women
investors in particular, and IPO Access, which gives customers an
opportunity to invest in companies at their IPO price.”
Highlights
Robinhood Offers Customers Access to IPOs
- Robinhood
launched its IPO Access product on May 20, 2021, providing
customers access to shares of certain initial public offerings at
the same price as institutional and high net worth investors.
- In addition to
placing orders for IPO shares, customers can browse through a list
of upcoming issuers on the IPO Access platform, stay up to date on
upcoming milestones, and read through prospectuses to learn about
the issuers, their business models, management teams, and key risk
factors.
- Six companies,
excluding our own, have offered IPO shares to customers through IPO
Access so far. We’ve seen meaningful customer engagement on these
deals, with our share of the allocations oversubscribed by greater
than 5x. Robinhood’s customers also exhibited relatively low
turnover, with approximately 80-85% of the allotted shares still
held 30 days after IPO for the two deals that priced in Q2, FIGS
and YOU.
Robinhood Delivers on Customer Service
- Robinhood
continued to expand its rollout of live phone support for customers
across high priority topics in equities and options trading as well
as account security. Additionally, investments in technology and
support staff are improving the quality and speed of phone support
with response times in Q2 improving by 67% versus Q2 of the prior
year.
- Robinhood hired
and trained hundreds of additional licensed customer service
representatives, approximately doubling the size of the customer
support team at the end of the quarter as compared to the beginning
of the year.
- Product improvements led to a
reduction in contact rates by 40% during Q2, versus Q2 of the prior
year.
Crypto Engagement at Record Levels
- Robinhood’s
customers demonstrated significant interest in cryptocurrencies,
with over 60% of our net cumulative funded accounts trading in
crypto during the second quarter.
- The three months ended June 30,
2021 is the first quarter where a larger share of new customers
placed their first trade in crypto rather than equities.
Robinhood Expands its Educational Content
- Robinhood
launched its first set of educational modules, allowing customers
to take quick in-app courses on the basics of investing.
- The Robinhood
Snacks Daily podcast, which includes an entertaining breakdown of
top business stories, was downloaded 11.4 million times during the
quarter, up 19% year over year.
- The Robinhood Snacks newsletter,
which provides digestible daily financial news, had 24.6 million
unique people open the newsletter in Q2, up 171% year over year.
Financial Outlook
Our business is affected by many factors,
including seasonality, general market conditions and retail trading
behavior as well as significant, unanticipated market events. Many
of these factors worked in our favor during the three months ended
June 30, 2021, resulting in a very strong quarter with record
revenues. For the three months ended September 30, 2021, we expect
seasonal headwinds and lower trading activity across the industry
to result in lower revenues and considerably fewer new funded
accounts than in the prior quarter.
For operating expenses, we will continue to
invest in key areas to enhance platform capabilities, drive product
innovation and improve customer support, as well as building upon
our regulatory and compliance functions. We will also record a
one-time cumulative charge of $1.0 billion in stock-based
compensation for restricted stock units related to our IPO in the
third quarter. Total remaining unamortized stock-based compensation
of $2.2 billion as of the IPO date will be recognized over a
weighted average remaining service period of 2.6 years.
Resale Registration Statement on Form S-1
Update
As previously announced, on August 5, 2021 we
filed a registration statement on Form S-1 (the “Resale S-1”) with
the Securities and Exchange Commission (the “SEC”) on behalf of
certain of our shareholders to register the resale of outstanding
shares of our Class A common stock received by them upon the
conversion of our Tranche I convertible notes. The SEC staff
informed us on August 13, 2021 that they are reviewing the Resale
S-1. No sales can be made off the Resale S-1 until the SEC staff
completes their review and declares it effective. At this time, we
cannot predict how long that process will take.
Webcast and Conference Call
Information
Robinhood will host a conference call at 2 p.m.
PT / 5 p.m. ET today, August 18, 2021. The live webcast of
Robinhood's earnings conference call can be accessed at
investors.robinhood.com, along with the earnings press release and
accompanying slide presentation.
Following the call, a replay and transcript will
also be available at the same website.
About Robinhood
Robinhood Markets is on a mission to democratize
finance for all. With Robinhood, people can invest with no account
minimums through Robinhood Financial LLC, buy and sell crypto
through Robinhood Crypto LLC, and learn about investing through
easy-to-understand educational content. Robinhood aims to build the
most trusted and most culturally relevant money app worldwide.
"Robinhood" and the Robinhood feather logo are
registered trademarks of Robinhood Markets, Inc. All other names
are trademarks and/or registered trademarks of their respective
owners.
Contacts
Investors:Irvin Shair@robinhood.com
Press:press@robinhood.com
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking
statements regarding the expected financial performance of
Robinhood Markets, Inc. and its consolidated subsidiaries (“we,”
“Robinhood,” or the “Company”) and our strategic and operational
plans, including the statements under “Financial Outlook.” Our
forward-looking statements are subject to a number of known and
unknown risks, uncertainties, assumptions, and other factors that
may cause Robinhood’s actual future results, performance, or
achievements to differ materially from any future results expressed
or implied in this press release. Reported results should not be
considered an indication of future performance. Risks that
contribute to the uncertain nature of our forward-looking
statements include, among others, risks relating to: the size of
our market opportunities; our ability to effectively manage our
growth; our ability to successfully enter new markets, including
any expansion into international markets, and comply with any
applicable laws and regulations; our ability to invest in and
develop our products and services to operate with changing
technology; the expected benefits of our products to our customers
and the impact of our products on our business; the effects of
increased competition from our market competitors; the success of
our marketing efforts and the ability to grow brand awareness and
maintain, protect and enhance our brand; the impact of negative
publicity on our brand and reputation; our ability to attract and
retain our customers; our ability to maintain the security and
availability of our platform; our ability to attract and retain key
personnel and highly qualified personnel; our expectations
regarding the impacts of accounting guidance; our expectations
regarding litigation and regulatory proceedings; our expectations
regarding share-based compensation; our ability to collect, store,
share, disclose, transfer, receive, use and otherwise process
customer information and other data, and compliance with laws,
rules and regulations related to data privacy, protection and
security; our ability to comply with modified or new laws and
regulations applying to our business, and potential harm to our
business as a result of those laws and regulations; the impact of
adverse economic conditions; our expectations regarding the
continuing impact of COVID-19 on our business; our expectations
regarding the loss of our status as an emerging growth company; our
expectations regarding the use of net proceeds from our IPO; and
the increased expenses associated with being a public company,
among others. Because some of these risks and uncertainties cannot
be predicted or quantified and some are beyond our control, you
should not rely on our forward-looking statements as predictions of
future events. More information about potential risk factors that
could affect our business and financial results is included in
Robinhood’s filings with the Securities and Exchange Commission
(“SEC”), including our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2021, which is available on the SEC’s web
site at www.sec.gov. Moreover, we operate in a competitive and
rapidly changing environment; new risks and uncertainties may
emerge from time to time, and it is not possible for us to predict
all risks nor identify all uncertainties. The events and
circumstances reflected in our forward-looking statements might not
be achieved and actual results could differ materially from those
projected in the forward-looking statements. Except as otherwise
noted, all forward-looking statements are made as of the date of
this press release, August 18, 2021, and are based on information
and estimates available to us at this time. Although we believe
that the expectations reflected in our forward-looking statements
are reasonable, we cannot guarantee future results, performance, or
achievements. Except as required by law, Robinhood assumes no
obligation to update any of the statements in this press release
whether as a result of any new information, future events, changed
circumstances, or otherwise. You should read this press release
with the understanding that our actual future results, performance,
events, and circumstances might be materially different from what
we expect.
Non-GAAP Financial Measures
We collect and analyze operating and financial
data to evaluate the health of our business, allocate our resources
and assess our performance. In addition to total net revenues, net
income (loss) and other results under GAAP, we utilize non-GAAP
calculations of adjusted earnings before interest, taxes,
depreciation and amortization (“Adjusted EBITDA”). This non-GAAP
financial information is presented for supplemental informational
purposes only, should not be considered a substitute for or
superior to financial information presented in accordance with GAAP
and may be different from similarly titled non-GAAP measures used
by other companies. A reconciliation of net income (loss), which is
the most directly comparable GAAP measure, to Adjusted EBITDA, is
provided in the financial tables included in this release.
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss),
excluding (i) interest expense related to credit facilities, (ii)
provision for (benefit from) income taxes, (iii) depreciation and
amortization, (iv) share-based compensation expenses, (v) change in
fair value of convertible notes and warrant liability and (vi)
certain legal and tax settlements, reserves and expenses.
The above items are excluded from our Adjusted
EBITDA measure because these items are non-cash in nature, or
because the amount and timing of these items is unpredictable, is
not driven by core results of operations and renders comparisons
with prior periods and competitors less meaningful. We believe
Adjusted EBITDA provides useful information to investors and others
in understanding and evaluating our results of operations, as well
as providing a useful measure for period-to-period comparisons of
our business performance. Moreover, Adjusted EBITDA is a key
measurement used by our management internally to make operating
decisions, including those related to operating expenses, evaluate
performance, and perform strategic planning and annual
budgeting.
Key Performance Metrics
Net Cumulative Funded Accounts
We define Net Cumulative Funded Accounts as the
total of Net Funded Accounts from inception to a stated date or
period end. “Net Funded Accounts” is the total number of Funded
Accounts for a stated period, excluding “churned users” and
including “resurrected users” as of the end of that period. A
“Funded Account” is a Robinhood account into which the account user
makes an initial deposit or money transfer, of any amount, during
the relevant period, which account is designed to provide a
customer with access to any and all of the products offered on our
platform. Users are considered “churned” if their accounts were
previously Funded Accounts and their account balance (which is
measured as the fair value of assets in the user’s account less the
amount due from the user) drops to or below zero dollars (which
negative balances typically result from Fraudulent Deposit
Transactions and, less often, from margin loans) for 45 consecutive
calendar days. Users are considered “resurrected” if they were
considered churned users during and as of the end of the
immediately preceding period, and had their account balance
increase above zero (and are not considered churned users) in the
current period.
Monthly Active Users (“MAU”)
We define MAU as the number of Monthly Active
Users during a specified calendar month. A “Monthly Active User” is
a unique user who makes a debit card transaction, or who
transitions between two different screens on a mobile device or
loads a page in a web browser while logged into their account, at
any point during the relevant month. A user need not satisfy these
conditions on a monthly or recurring basis or have a Funded Account
to be included in MAU. Figures in this release reflect MAU for the
last month of each period presented. We utilize MAU to measure how
many customers interact with our products and services during a
given month. MAU does not measure the frequency or duration of the
interaction, but we consider it a useful indicator for engagement.
Additionally, MAUs are positively correlated with, but are not
indicative of the performance of revenue and other key performance
indicators.
Assets Under Custody (“AUC”)
We define AUC as the sum of the fair value of
all equities, options, cryptocurrency and cash held by users in
their accounts, net of customer margin balances, as of a stated
date or period end on a trade date basis. Net Deposits and net
market gains drive the change in AUC in any given period. We define
“Net Deposits” as all cash deposits received from customers net of
reversals, customer cash withdrawals and other equity and cash
amounts transferred out of our platform (including in connection
with debit card transactions and account transfers out of our
platform through the Automated Customer Account Transfer Service
(“ACATS”)) for a stated period.
Average Revenue Per User (“ARPU”)
We define ARPU as total revenue for a given
period (or, in the case of ARPU for a given cohort, total revenue
generated by that cohort during a given year or period) divided by
the average of Net Cumulative Funded Accounts (or, in the case of
ARPU for a given cohort, the Net Cumulative Funded Accounts
included in that cohort) as of the last day of that period and as
of the last day of the immediately preceding period. In the case of
ARPU for a three-month period, this figure is multiplied by four to
annualize the figure for comparability. Figures in this release
represent ARPU for each year or annualized three-month period
presented.
ROBINHOOD MARKETS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
December 31, |
|
June 30, |
(in thousands, except share and per share data) |
2020 |
|
2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,402,629 |
|
|
$ |
5,077,752 |
|
Cash and securities segregated under federal and other
regulations |
4,914,660 |
|
|
5,374,594 |
|
Receivables from brokers, dealers and clearing organizations |
124,501 |
|
|
209,792 |
|
Receivables from users, net |
3,354,142 |
|
|
5,423,643 |
|
Deposits with clearing organizations |
225,514 |
|
|
272,204 |
|
Other current assets |
851,138 |
|
|
1,542,902 |
|
Total current assets |
10,872,584 |
|
|
17,900,887 |
|
Property, software and equipment, net |
45,834 |
|
|
71,078 |
|
Restricted cash |
7,364 |
|
|
17,273 |
|
Non-current assets |
62,692 |
|
|
99,344 |
|
Total assets |
$ |
10,988,474 |
|
|
$ |
18,088,582 |
|
Liabilities, mezzanine equity and stockholders’
deficit |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ |
104,649 |
|
|
$ |
292,851 |
|
Payables to users |
5,897,242 |
|
|
7,768,181 |
|
Securities loaned |
1,921,118 |
|
|
2,642,900 |
|
Other current liabilities |
893,036 |
|
|
1,536,344 |
|
Total current liabilities |
8,816,045 |
|
|
12,240,276 |
|
Convertible notes |
— |
|
|
5,189,783 |
|
Other non-current liabilities |
48,012 |
|
|
463,548 |
|
Total liabilities |
8,864,057 |
|
|
17,893,607 |
|
Commitments and contingencies |
|
|
|
Mezzanine equity |
|
|
|
Redeemable convertible preferred stock, $0.0001 par value.
414,033,220 and 658,311,424 authorized at December 31, 2020 and
June 30, 2021. 412,742,897 issued and outstanding at December 31,
2020 and June 30, 2021. Liquidation preference of $2,191,086 at
December 31, 2020 and June 30, 2021. |
2,179,739 |
|
|
2,179,739 |
|
Stockholders’ deficit: |
|
|
|
Common stock, $0.0001 par value, 777,354,000 and 1,057,152,204
shares authorized at December 31, 2020 and June 30, 2021.
229,031,546 and 232,609,957 shares issued and outstanding at
December 31, 2020 and June 30, 2021. |
1 |
|
|
1 |
|
Additional paid-in capital |
134,307 |
|
|
151,281 |
|
Accumulated other comprehensive income |
473 |
|
|
525 |
|
Accumulated deficit |
(190,103 |
) |
|
(2,136,571 |
) |
Total stockholders’ deficit |
(55,322 |
) |
|
(1,984,764 |
) |
Total liabilities, mezzanine equity and stockholders’ deficit |
$ |
10,988,474 |
|
|
$ |
18,088,582 |
|
|
|
|
|
|
|
|
|
ROBINHOOD MARKETS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) |
|
Three Months EndedJune 30, |
|
% Change |
|
Six Months EndedJune 30, |
|
% Change |
(in thousands, except share and per share data) |
2020 |
|
2021 |
|
|
|
2020 |
|
2021 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Transaction-based revenues |
$ |
187,413 |
|
|
$ |
451,167 |
|
|
141 |
% |
|
283,044 |
|
|
871,606 |
|
|
208 |
% |
Net interest revenues |
39,998 |
|
|
67,709 |
|
|
69 |
% |
|
64,014 |
|
|
130,206 |
|
|
103 |
% |
Other revenues |
16,800 |
|
|
46,457 |
|
|
177 |
% |
|
24,703 |
|
|
85,695 |
|
|
247 |
% |
Total net revenues |
244,211 |
|
|
565,333 |
|
|
131 |
% |
|
371,761 |
|
|
1,087,507 |
|
|
193 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
Brokerage and transaction |
28,612 |
|
|
37,812 |
|
|
32 |
% |
|
49,016 |
|
|
78,816 |
|
|
61 |
% |
Technology and development |
44,971 |
|
|
156,347 |
|
|
248 |
% |
|
78,176 |
|
|
273,205 |
|
|
249 |
% |
Operations |
30,464 |
|
|
101,065 |
|
|
232 |
% |
|
52,277 |
|
|
167,629 |
|
|
221 |
% |
Marketing |
43,510 |
|
|
94,159 |
|
|
116 |
% |
|
113,432 |
|
|
196,407 |
|
|
73 |
% |
General and administrative |
38,636 |
|
|
111,346 |
|
|
188 |
% |
|
73,287 |
|
|
248,460 |
|
|
239 |
% |
Total operating expenses |
186,193 |
|
|
500,729 |
|
|
169 |
% |
|
366,188 |
|
|
964,517 |
|
|
163 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of convertible notes and warrant
liability |
— |
|
|
528,052 |
|
|
NM |
|
— |
|
|
2,020,321 |
|
|
NM |
Other expense (income), net |
(100 |
) |
|
710 |
|
|
NM |
|
43 |
|
|
(149 |
) |
|
NM |
Income (loss) before income tax |
58,118 |
|
|
(464,158 |
) |
|
NM |
|
5,530 |
|
|
(1,897,182 |
) |
|
NM |
Provision for income taxes |
534 |
|
|
37,507 |
|
|
NM |
|
448 |
|
|
49,286 |
|
|
NM |
Net income (loss) |
$ |
57,584 |
|
|
$ |
(501,665 |
) |
|
NM |
|
5,082 |
|
|
(1,946,468 |
) |
|
NM |
Net income (loss) attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
22,783 |
|
|
(501,665 |
) |
|
|
|
2,050 |
|
|
(1,946,468 |
) |
|
|
Diluted |
22,783 |
|
|
(501,665 |
) |
|
|
|
2,050 |
|
|
(1,946,468 |
) |
|
|
Net income (loss) per share attributable to common
stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.10 |
|
|
$ |
(2.16 |
) |
|
|
|
$ |
0.01 |
|
|
$ |
(8.41 |
) |
|
|
Diluted |
$ |
0.09 |
|
|
$ |
(2.16 |
) |
|
|
|
$ |
0.01 |
|
|
$ |
(8.41 |
) |
|
|
Weighted-average shares used to compute net income (loss) per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
225,091,413 |
|
|
232,223,019 |
|
|
|
|
224,953,736 |
|
|
231,459,227 |
|
|
|
Diluted |
244,338,145 |
|
|
232,223,019 |
|
|
|
|
244,539,192 |
|
|
231,459,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________(1) The following table presents
operating expenses as a percent of total net revenues:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
Brokerage and transaction |
12 |
% |
|
7 |
% |
|
13 |
% |
|
7 |
% |
Technology and development |
18 |
% |
|
28 |
% |
|
21 |
% |
|
25 |
% |
Operations |
12 |
% |
|
18 |
% |
|
14 |
% |
|
15 |
% |
Marketing |
18 |
% |
|
17 |
% |
|
31 |
% |
|
18 |
% |
General and administrative |
16 |
% |
|
20 |
% |
|
20 |
% |
|
23 |
% |
Total operating expenses |
76 |
% |
|
90 |
% |
|
99 |
% |
|
88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
ROBINHOOD MARKETS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in thousands) |
2020 |
|
2021 |
|
2020 |
|
2021 |
Operating activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
57,584 |
|
|
$ |
(501,665 |
) |
|
$ |
5,082 |
|
|
$ |
(1,946,468 |
) |
Adjustments to reconcile net income (loss) to net cash
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
2,185 |
|
|
4,873 |
|
|
3,913 |
|
|
8,694 |
|
Provision for credit losses |
13,985 |
|
|
20,342 |
|
|
23,933 |
|
|
36,745 |
|
Share-based compensation |
1,365 |
|
|
1,138 |
|
|
3,777 |
|
|
10,134 |
|
Deferred income taxes |
52 |
|
|
2 |
|
|
(88 |
) |
|
1 |
|
Change in fair value of convertible notes and warrant
liability |
— |
|
|
528,052 |
|
|
— |
|
|
2,020,321 |
|
Other |
19 |
|
|
— |
|
|
19 |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Segregated securities under federal and other regulations |
20 |
|
|
(349,984 |
) |
|
— |
|
|
(214,990 |
) |
Receivables from brokers, dealers and clearing organizations |
(79,927 |
) |
|
(34,299 |
) |
|
(116,703 |
) |
|
(85,291 |
) |
Receivables from users, net |
(731,891 |
) |
|
(75,564 |
) |
|
(769,581 |
) |
|
(2,104,430 |
) |
Deposits with clearing organizations |
32,355 |
|
|
50,639 |
|
|
(113,112 |
) |
|
(46,690 |
) |
Other current and non-current assets |
(139,519 |
) |
|
(312,637 |
) |
|
(156,252 |
) |
|
(730,233 |
) |
Accounts payable and accrued expenses |
(5,364 |
) |
|
56,432 |
|
|
18,248 |
|
|
182,214 |
|
Payables to users |
463,215 |
|
|
1,927,346 |
|
|
2,913,253 |
|
|
1,870,939 |
|
Securities loaned |
161,459 |
|
|
611,766 |
|
|
91,468 |
|
|
721,782 |
|
Other current and non-current liabilities |
142,930 |
|
|
354,876 |
|
|
159,206 |
|
|
676,393 |
|
Net cash provided by operating activities |
(81,532 |
) |
|
2,281,317 |
|
|
2,063,163 |
|
|
399,121 |
|
Investing activities: |
|
|
|
|
|
|
|
Purchase of property, software and equipment |
(5,595 |
) |
|
(12,781 |
) |
|
(11,689 |
) |
|
(22,085 |
) |
Capitalization of internally developed software |
(2,229 |
) |
|
(3,719 |
) |
|
(4,573 |
) |
|
(5,777 |
) |
Net cash used in investing activities |
(7,824 |
) |
|
(16,500 |
) |
|
(16,262 |
) |
|
(27,862 |
) |
Financing activities: |
|
|
|
|
|
|
|
Proceeds from issuance of convertible notes and warrants |
— |
|
|
— |
|
|
— |
|
|
3,551,975 |
|
Draws on credit facilities |
— |
|
|
348,276 |
|
|
907,700 |
|
|
1,348,276 |
|
Repayments on credit facilities |
(175,000 |
) |
|
(348,276 |
) |
|
(892,700 |
) |
|
(1,348,276 |
) |
Proceeds from issuance of redeemable convertible preferred stock,
net of issuance costs |
557,297 |
|
|
— |
|
|
557,297 |
|
|
— |
|
Proceeds from exercise of stock options, net of repurchases |
528 |
|
|
893 |
|
|
584 |
|
|
6,690 |
|
Net cash provided by financing activities |
382,825 |
|
|
893 |
|
|
572,881 |
|
|
3,558,665 |
|
Effect of foreign exchange rate changes on cash and cash
equivalents |
(42 |
) |
|
23 |
|
|
(174 |
) |
|
52 |
|
Net increase in cash, cash equivalents, segregated
cash and restricted cash |
293,427 |
|
|
2,265,733 |
|
|
2,619,608 |
|
|
3,929,976 |
|
Cash, cash equivalents, segregated cash
and restricted cash, beginning of the period |
5,395,749 |
|
|
7,853,902 |
|
|
3,069,568 |
|
|
6,189,659 |
|
Cash, cash equivalents, segregated cash
and restricted cash, end of the period |
$ |
5,689,176 |
|
|
$ |
10,119,635 |
|
|
$ |
5,689,176 |
|
|
$ |
10,119,635 |
|
Cash and cash equivalents, end of the period |
$ |
794,482 |
|
|
$ |
5,077,752 |
|
|
$ |
794,482 |
|
|
$ |
5,077,752 |
|
Segregated cash, end of the period |
4,887,330 |
|
|
5,024,610 |
|
|
4,887,330 |
|
|
5,024,610 |
|
Restricted cash, end of the period |
7,364 |
|
|
17,273 |
|
|
7,364 |
|
|
17,273 |
|
Cash, cash equivalents, segregated
cash and restricted cash, end of the period |
$ |
5,689,176 |
|
|
$ |
10,119,635 |
|
|
$ |
5,689,176 |
|
|
$ |
10,119,635 |
|
Supplemental disclosures: |
|
|
|
|
|
|
|
Cash paid for interest |
$ |
1,283 |
|
|
$ |
2,484 |
|
|
$ |
2,582 |
|
|
$ |
3,083 |
|
Cash paid for income taxes |
$ |
418 |
|
|
$ |
394 |
|
|
$ |
417 |
|
|
$ |
3,128 |
|
Reconciliation of GAAP to Non-GAAP Results |
(Unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in thousands) |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
Net income (loss) |
|
$ |
57,584 |
|
|
$ |
(501,665 |
) |
|
$ |
5,082 |
|
|
$ |
(1,946,468 |
) |
Add: |
|
|
|
|
|
|
|
|
Interest expenses related to credit facilities |
|
1,555 |
|
|
5,268 |
|
|
3,059 |
|
|
8,067 |
|
Provision for income taxes |
|
534 |
|
|
37,507 |
|
|
448 |
|
|
49,286 |
|
Depreciation and amortization |
|
2,185 |
|
|
4,873 |
|
|
3,913 |
|
|
8,694 |
|
EBITDA (non-GAAP) |
|
61,858 |
|
|
(454,017 |
) |
|
12,502 |
|
|
(1,880,421 |
) |
Share-based compensation |
|
1,365 |
|
|
1,138 |
|
|
3,777 |
|
|
10,134 |
|
Change in fair value of convertible notes and warrant
liability(1) |
|
— |
|
|
528,052 |
|
|
— |
|
|
2,020,321 |
|
Certain legal and tax settlements, reserves and expenses(2) |
|
— |
|
|
15,000 |
|
|
— |
|
|
54,910 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
63,223 |
|
|
$ |
90,173 |
|
|
$ |
16,279 |
|
|
$ |
204,944 |
|
_________________
(1) Change in fair value of convertible notes
and warrant liability is the adjustment necessary to mark our
convertible notes and warrants to fair market value.
(2) Certain legal and tax settlements, reserves
and expenses for the three months ended June 30, 2021 includes a
charge of $15 million in connection with the
settlement-in-principle Robinhood Crypto, LLC reached with New York
Department of Financial Services (“NYDFS”) with respect to an NYDFS
matter focused primarily on anti-money laundering and cybersecurity
(the “NYDFS Matter”). As of June 30, 2021 we have accrued a total
of $30.0 million for the NYDFS Matter.
Certain legal and tax settlements, reserves and
expenses for the six months ended June 30, 2021 includes charges of
(i) $34.9 million in connection with the agreement Robinhood
Financial LLC (“RHF”) reached with the Financial Industry
Regulatory Authority (“FINRA”) to resolve, on an no admit, no deny
basis, certain of FINRA’s investigations and examinations,
including investigations into systems outages, RHF’s options
product offering, and margin-related communications with customers,
among others (“FINRA Matters”), and (ii) $20.0 million in
connection with the NYDFS Matter described above. As of June 30,
2021 we have accrued a total of $61.5 million for the FINRA
Matters, including a $57.0 million fine as well as $4.5
million of customer restitution to be paid.
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