Robinhood Markets, Inc. (NASDAQ:HOOD) Q4 2023 Earnings Call Transcript February 13, 2024 5:00 PM ET

Company Participants

Chris Koegel - VP of Corporate FP&A and IR

Vlad Tenev - CEO and Co-Founder

Jason Warnick - CFO

Conference Call Participants

Dan Dolev - Mizuho

Devin Ryan - JMP Securities

Alex Markgraf - KBCM

Will Nance - Goldman Sachs

Michael Anagnostakis - Wolfe Research

Michael Cyprys - Morgan Stanley

John Todaro - Needham & Company

Patrick Moley - Piper Sandler

Ken Worthington - JPMorgan

Benjamin Budish - Barclays

Operator

Thank you for standing by, and welcome to the Robinhood Markets Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Chris Koegel, Vice President of Corporate FP&A and Investor Relations. Please go ahead.

Chris Koegel

All right. Thank you, Jonathan, and thank you to everyone for joining Robinhood's Q4 Earnings Call. With us today are our CEO, and Co-Founder, Vlad Tenev, and CFO, Jason Warnick.

Before getting started, I want to remind you that today's call will contain forward-looking statements. Actual results could differ materially from our expectations, and we have no duty to provide updates unless legally required. Potential risk factors that could cause differences, including regulatory developments that we continue to monitor, are described in the press release we issued today, the earnings presentation, and our SEC filings all of which can be found at investors.robinhood.com. Today's discussion will also include non-GAAP financial measures. Reconciliation to the GAAP results we consider most comparable can be found in the earnings presentation.

With that, let me turn it over to Vlad.

Vlad Tenev

Thanks, Chris. Hi, everyone. We're going to try something a little bit different today, I'm going to keep my remarks brief so that we can spend more time on Q&A. Robinhood is focused on three things. Number one, winning the active trader market. Two, increasing wallet share, as we deepen relationships with our customers. And three, expanding internationally.

I first off want to congratulate our team for a strong 2023. Trading market share was up 14% for equities and 19% for options year-over-year. Gold subscribers were up 25% to 1.4 million and assets under custody exceeded $100 billion, fueled by the strength of our 27% organic growth in net deposits, and we've launched brokerage in the UK and crypto in the EU. A couple of points to call out. In Q4, we finished with $1.3 billion of net positive brokerage account transfers into Robinhood and we've already exceeded that total halfway through Q1. We've been taking trading market share for some time and now we're winning net asset inflows from every one of our major competitors, averaging over $100,000 per transfer. And as for funded customers, we've already grown more in the first half of Q1, than we did in each of the last eight quarters. So I love the momentum we're building and I'm excited about 2024.