Robinhood Markets Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Craig Siegenthaler - BofA Global Research - Analyst : Good afternoon, everyone. Hope everyone's doing well. First, we want to congratulate you on the Legend launch. And I saw there were, I think, a thousand sign-ups in the first 40 seconds, Vlad, post the launch. But what is the level of sign-ups to date and how many of them are incremental sign-ups to the 24.4 million accounts there are at Robinhood as of September 30?

Question: Dan Dolev - Mizuho Securities USA - Analyst : Hey, Vlad. Hey, guys. Great results again. Very proud of you.

Question: Dan Dolev - Mizuho Securities USA - Analyst : You got it. Yes, of course. Well deserved. I was very intrigued with the Presidential Election market. And I wanted to know, it's gotten a lot of press and we've been getting a lot of questions on it. So can you give us some color on how it's doing, how accretive it is to overall retention? Anything you can tell us about it would be great. Thank you.

Question: Patrick Moley - Piper Sandler Companies - Analyst : Yes, good afternoon. Thanks for taking the question. I just had one on index options and futures trading. Now that you've announced the pricing on this product, I was hoping you could help us better understand the economics there. I know index options carry relatively high exchange fees. So what do your margins look like in offering those contracts, how much you expect to make per contract? And then maybe as part of that, your expectation for how much volume is going to come from Gold versus non-Gold members? And then if I could add a follow-on modeling question. It looks like your equity fee capture declined by about 20% sequentially. So any color there on what drove that would be helpful. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2024 / 9:00PM, HOOD.OQ - Q3 2024 Robinhood Markets Inc Earnings Call

Question: Devin Ryan - Citizens JMP - Analyst : Great. Hi, Vlad. Hi, Jason. How are you? I wanted to ask a question just on interest rate sensitivity. So obviously, we saw the first 50 basis points in Fed cuts. Last quarter, I think you talked about 25 basis points to a $40 million impact. And that was just essentially the simple math off of balances at the time. And I didn't take into consideration potential for accelerating margin utilization or higher sec lending activity or higher transaction activity, which often happens as rates come down. So I just wanted to get a sense of whether you're seeing or expecting this key kind of acceleration in margin, how you would frame the upside in sec lending? It seems like we're operating at a depressed level. Do you see a lot of upside in a more normal environment? And then, are there any other kind of offsetting forces we should be thinking about beyond just the simple math of a rate time to balance? Thanks.

Question: Benjamin Budish - Barclays - Analyst : Sorry about that. I have the phone stuck on mute. Well, thank you for taking the question. I was wondering if you could talk kind of generally about your path to product kind of innovation and launch. It looks like with the active trader offering, the credit card, you're being very kind of cautious and measured in terms of the rollout. How should we read that into future product development? I think we're all expecting a lot to be in announced at the December Investor Day. You've talked about broader ambitions and crypto global kind of brokerage offerings. So yes, could you talk about sort of your approach to like product velocity and how we should think about the pace of rollout for current and future product launches? Thank you.

Question: Steven Chubak - Wolfe Research LLC - Analyst : Hi. Good evening. I wanted to start off with a question on actually a chart that you had included in a recent presentation deck, just showing the strong relationship between revenues and AUC. It's been a persistent trend over the last few quarters. I mean, in this particular quarter, we did see some decoupling amid some of the rate cuts and subdued trading activity. And we're just hoping you could speak to your confidence level that that relationship should ultimately still hold even amid the impact of further rate cuts from the Fed.

Question: Andrew Stein - FT Partners - Analyst : Hi. Thanks for taking the question. Just wondering, could you discuss the deposit trends for some of the recent promotional offers? And then, what's your strategy for deposit bonuses going forward? Thank you.

Question: Madeline Daleiden - J.P. Morgan - Analyst : Hi. This is Madeline Daleiden on for Ken. Thanks for taking our question. You discussed it a bit already, but we wanted to dig a little more into the strategy around the election-related event contracts. So could you walk us through your ultimate decision to list these event contracts, how they fit into the product roadmap? And ultimately, is Robinhood considering getting bigger into these more betting type products? Thank you.