Robinhood Markets Inc at Citizens JMP Technology Conference Transcript

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

Question: Devin Ryan - JMP Securities - Analyst : Yeah. Thank you. So to kick things off, Vlad, I want to start with a question that hopefully sets the stage for people to think about the philosophy of Robinhood and kind of as a manager as well. So you started the company a little bit over 10 years ago and I've covered the space for over 20 years. And I remember when Robinhood was just getting going, a lot of the incumbents I'd be sitting in meetings and they'd say, well, this is just another trading platform. We've seen this before. So they can't disrupt the industry. And obviously, here we are, over a decade later, and I think everybody's taking notice and now you're going into other industries where there's large incumbents. And I think in some cases, people are being dismissive of those new industries, but in other cases, I think you've built this track record. So the first question is just kind of 10 years ago or over 10 years ago, what gave you the confidence that going into this industry with huge mature incumbents that there was really a need for a new player that you guys could actually come in and do something different that hasn't been done before? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 7:00PM, HOOD.OQ - Robinhood Markets Inc at Citizens JMP Technology Conference

Question: Devin Ryan - JMP Securities - Analyst : Yeah. So flash forward to today, you had your first Investor Day in December. We outlined, I think, a big vision, $600 billion kind of addressable market. So there's kind of a massive addressable opportunity. You just reported a record year momentum across so many parts of the business, in our opinion. But you kind of have outlined kind of three priorities. And so where I want to start is on the first one on active trader. I think you launched the Legend offering not too long ago and it seems like you're having a lot of success there. Can you gain market share in active trading? Can you talk a little bit about how you feel like your platform is differentiated and just talk about where your market share is today relative to where you think you can take it in the future? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 7:00PM, HOOD.OQ - Robinhood Markets Inc at Citizens JMP Technology Conference

Question: Devin Ryan - JMP Securities - Analyst : Yeah. And talk about events contracts are getting a lot of attention in the market, obviously. And I think clearly, people are also wondering about the connection to sports betting. But I think the events contracts to me is something much bigger than simply sports. And obviously, the election was a great launch pad for seeing the influence of those both in the markets, but then also how that information is valuable to making trades in other aspects of asset classes whether it's in equities or other assets options. So how do you see that playing out and how big of a piece of the story could that be for Robinhood over the long term?

Question: Devin Ryan - JMP Securities - Analyst : Before we move on, I just want to get a sense of the current trading market. Obviously, markets are volatile and there's information coming left and right macro wise, but company-wise as well coming off the earning season. So I'm curious how you would frame. Because trading has been phenomenal over the last couple of quarters. Is that continuing and have you seen just even in this recent kind of bout of volatility around tariffs and other interest rate uncertainty, how are your customers navigating that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 7:00PM, HOOD.OQ - Robinhood Markets Inc at Citizens JMP Technology Conference

Question: Devin Ryan - JMP Securities - Analyst : The second priority that you outlined at Investor Day, and I think talked about with earnings was share of wallet and increasing share of wallet and that being a $180 billion revenue opportunity. So just a massive new opportunity. Obviously, cards are an area to connect their cash sweep, US advisory which you're just getting into and other opportunities. Let me get your senses of why you think Robinhood has a right to win in these new markets or additional markets beyond trading and what gives you the confidence that people want to do more with Robinhood beyond just maybe where they initially came to Robinhood years ago for a trading experience.

Question: Devin Ryan - JMP Securities - Analyst : Yeah. And just on the Gold, it seems like that's kind of the tip of the spear to really add value for customers as you're going in with the high cash rate or the high rate on cash or other the low margin rate. How should we think about it? Is there a lot more to do with that Gold offering? The attach rates are obviously really accelerating. So how do you think about what else there is to do with that Gold offering, and should we expect more products coming through on that as well?

Question: Devin Ryan - JMP Securities - Analyst : So I want to move on to the other big priority that you've been talking about, and probably the biggest addressable market. I think you highlighted $400 billion which is kind of that 10-year arc of being the number one global financial ecosystem. So that's a huge ambition. There's a lot within that that I want to go through, but something that we're obviously very focused on is the opportunity in crypto. And the firm has been kind of a leader. You guys were early to get into the space in terms of offering access to crypto trading. You've expanded the offering. But when I think about crypto, I think about it it's much broader opportunity for Robinhood. How do you integrate blockchain technology into your business model and offer other capabilities whether it's connectivity with Stablecoins, which you guys are starting to do or the tokenization of markets? And you guys seem like you're going to be in a great spot for that. So how do you think about as we're kind of going into this new age of crypto which in my mind is kind of going from speculation -- a lot of speculation to utility, how do you feel like Robinhood is positioned to participate in that? And as you think about crypto as a percentage of revenues or contribution to the firm, do you think there's a bigger opportunity maybe from all the other ancillary connection points of crypto beyond just trading of tokens?

Question: Devin Ryan - JMP Securities - Analyst : Yeah. It's exciting and obviously, you're buying an exchange Bitstamp. So that will connect you even deeper into the ecosystem. But with that acquisition, something that I think is interesting is it expands your international breadth. So that helps there. But it also expands, I believe, connectivity into institutions, institutional clients. And so people historically think of Robinhood as this retail offering. But long term, how big of an opportunity do you see there to be with institutional customers just across the ecosystem? Because a lot of what you're building would seem to be relevant for institutions as well. And in that big addressable market, prime brokerage is an area that you guys are talking about. So how do you think about institutions connecting with Robinhood over intermediate term or long term?

Question: Devin Ryan - JMP Securities - Analyst : Just on the international front. Obviously, you're already international, but how has the brand been received in the relatively early days of being international? And then as you think about you've laid out some other geographies you want to go to, how should we think about kind of the next international launches coming? Is that something that's near term or is that just more of a longer term focus after you get let's say Europe correct?

Question: Devin Ryan - JMP Securities - Analyst : Artificial intelligence has been kind of obviously a big theme just over the last couple of days in our conference here. And I feel like Robinhood's going to be at the front and centre of how artificial intelligence gets integrated into investing in managed products. Now digital advice, something that you're going to be launching. Talk about how you think about the opportunity with artificial intelligence and how you guys are going to potentially be a leader integrating that because it just seems like there's so much more to do leveraging this technology. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 7:00PM, HOOD.OQ - Robinhood Markets Inc at Citizens JMP Technology Conference

Question: Devin Ryan - JMP Securities - Analyst : And something that we get a question from investors frequently, how can Robinhood grow at the rate they're growing but also be as profitable, especially as you guys have gotten the business into profitability? And then in this past quarter, I think the gap margins were like 55%. So you have this massive top line growth, net new deposit growth rate of 50%. But you're very committed to quote-unquote, profitable growth. And I think because market's trying to reconcile because they're looking at old models and saying the unit economics don't work like that, but you guys are setting, I think a new standard without the bureaucracy. You don't have the branches, very efficient modern infrastructure. So and it sounds like there's still more to do. I know you've been talking about there's still more room for efficiencies in the model. And so how do you think about Robinhood's maybe competitive differentiation from a unit economic perspective because to us, that's kind of the secret sauce of how you guys are winning because you are growing at such a rapid rate but can drop so much of the bottom line, especially with a 90% I think fixed expense base?

Question: Devin Ryan - JMP Securities - Analyst : Yeah. I guess maybe the flip side of everything, there's so much momentum right now, but there's obviously always risks in the market. And so as a manager, what are the risks that you're most focused on whether it be competitive or maintaining customer trust? The business is doing so well. What are things that are keeping you up and just making sure that you guys are in control of this?

Question: Devin Ryan - JMP Securities - Analyst : From a financial perspective, you are building cash, very cash generative. You have a lot of liquidity on the balance sheet already. What kind of M&A is interesting for Robinhood? You've been doing M&A, but how do you think about your M&A strategy and what should we expect in M&A for the firm over the next couple of years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 7:00PM, HOOD.OQ - Robinhood Markets Inc at Citizens JMP Technology Conference

Question: Devin Ryan - JMP Securities - Analyst : To bring this together, you've been talking about 10xing Robinhood over the next 10 years. And so on one hand, that sounds like a really ambitious thought to say the firm can because $3 billion plus of revenues right now to grow 10x is obviously tremendous. Is that a real goal? Do you really want to -- do you think you can actually get 10x growth over the next 10 years?

Question: Devin Ryan - JMP Securities - Analyst : As we hopefully get to do this again in a year, as you look forward, what would define success for Robinhood over the next year? Like what do you -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 7:00PM, HOOD.OQ - Robinhood Markets Inc at Citizens JMP Technology Conference

Question: Devin Ryan - JMP Securities - Analyst : Well, it's obviously been an exciting story. It's been a lot as an analyst to keep up with the pace of everything that you guys are doing. But it's been a lot of fun. And I know that there's lot more to come in 2025. So Vlad, thank you so much for spending the time and giving us the update.