Hey everyone,
Last week $HOOD (-7,16%) (Robinhood) presented the latest business figures.
CEO Vlad Tenev emphasized that the company achieved quarterly sales of over 1 billion US dollars for the first time in 2024.
Tenev was very positive about the product developments in 2024, including the Robinhood Gold Card, Robinhood Legend (a desktop platform for active traders) and Robinhood Derivatives (with futures and event contracts). Market share in equities and options also increased by 30% year-on-year, net deposits reached a record high of over USD 50 billion and the number of Gold subscribers rose to 2.6 million (a year-on-year growth of 80%).
CFO Jason Warnick added that the company expects to reach new highs in 2024 for assets under custody, net deposits, gold subscribers, revenue, adjusted EBITDA and earnings per share have been achieved. Revenue increased 58% to nearly $3 billion, Adjusted EBITDA increased over 160% to $1.4 billion and Adjusted EBITDA margin increased to 48%. The company achieved positive net income for the first full year, with earnings per share of USD 1.56.
Looking ahead to 2025, Robinhood plans to continue to invest in profitable growth while increasing efficiency. The company expects another year of double-digit revenue growthdriven by product innovation, market share gains and expansion into new markets. In terms of spending, the company plans to manage its existing businesses at low single-digit growth or even lower and make targeted growth investments for new products and an increase in the marketing budget of around USD 100 million.
The Q&A portion of the conference call was particularly insightful as it provided a more detailed look into Robinhood's strategies and future plans.
Firstly, the high demand for the Gold Card was discussed. It was impressive to hear how much interest there is in this credit card and how much customers appreciate the digital features. Robinhood plans to double the number of cardholders in the coming months, but is taking a very cautious approach to ensure long-term success.
Another important point was the in-depth stock analysis within the app. Robinhood not only wants to be the best place for transactions, but also for research and idea generation. The progress with Robinhood Legend, a platform for active traders, is promising and the team is working on transferring this experience to the mobile app and integrating fundamental data.
The topic of lending was also discussed in detail. In the long term, Robinhood wants to fulfill all of its customers' financial needs, including various lending products. The initial focus is on margin loans and the Gold Card, but there are plans to expand the range in the future.
One analyst asked about the hurdles to growth. Vlad Tenev emphasized that Robinhood must continue to innovate, invest in technology and adapt to technological changes such as AI and crypto in order to remain competitive.
One particularly exciting topic was event contracts and the potential of predictions. Robinhood is planning a comprehensive event platform (analogous to Polymarkets), including sports, despite regulatory uncertainties. The company is confident that this market will develop and wants to play a leading role in it.
An interesting point was the Custodian for advisors. Robinhood sees great potential here, particularly through access to Robinhood's client base and the opportunity to create a multigenerational platform. The company wants to bring clients who want personalized advice together with advisors and thus offer comprehensive support.
Another exciting point was the internationalization. Robinhood is planning further international expansion, including expanding its product offering in existing markets and entering new markets. The company wants to be present wherever customers use smartphones.
In summary, Robinhood has had a very successful 2024 and plans to continue to grow and expand in 2025. The company is focusing on product innovations, expanding its customer base and tapping into new markets.
I hope you enjoyed the summary.
Stay tuned!
