Robinhood Markets Inc at Piper Sandler Global Exchange and Trading Conference Transcript

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

Question: Patrick Moley - Piper Sandler & Co. - Analyst : (laughter) But thanks for joining us. This should be good one. I'm going to start it off. A week or two ago, you lowered margin loans from 8% to somewhere between 5.7% and 6.5%, I think. Can you talk about that decision to share some of the success that you've seen recently, if you're willing to share?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : So I think that's now the lowest in the industry, correct?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : You mentioned the matching incentive. That's maybe a good place to move next. The big key focus areas from your CEO are increasing wallet share with customers, winning with active traders, expanding internationally. You've seen a lot of success with these matching programs. Can you talk about how much of those deposit inflows are coming from new and existing customers and maybe just parse out a little bit more like where that's coming from and how sustainable you think it can be?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : So on the active trader front, you're someone who, probably for the majority of your career, has focused on web-based traders. And you say that you have this holistic offering. But I would challenge you a little bit there and say I think your web offering compared to others, maybe you have more work to do there. But that's a big part of the market that you haven't even tapped into yet. So in your thinking in your experience, how important do you think it is? And how much of a step function could it be in having a more robust web interface where traders maybe have a little more real estate? It seems like that to me could be the thing that really allows you to attract traders from other platforms.

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And with that, I think another thing in attracting users of other platforms will be offering futures, index options. How important do you think those will be to kind of winning active traders from other platforms? And is that still planning to do that in the fourth quarter this year?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : I want to touch on the environment that we're seeing. We sort of seen these like many meme-stock rallies Roaring Kitty fellow is coming back. I hear it's actually one of JJ's aliases. But do we -- what are you seeing? I mean, is it the same as it was last time? I think I saw you on CBC, you said it was like a quarter of the volume you're doing before. What are you kind of seeing from that?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And let's talk about international expansion. You launched in the UK last year. Can you update us on how that's going and where you are in the overall product roadmap? Have you started even marketing over there?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : So taking a step back, you've seen significant growth in the Robinhood gold subscriber cap. You reached more than 1.7 million at the end of the first quarter of '24.

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Yeah. Let me -- so I mean, you've been in the -- if you want to drop a number --

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Yeah, I'm sure it's higher than 1.7 million. Can we agree on that?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : So you've been in the industry a long time. What are your thoughts on the subscription model and the competitive advantage that that offers you? And is it something that you think competitors will start to offer? It's just -- help me understand like how you think about it in the overall industry?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : I don't know if he'll kill you if I ask you this question but --

Question: Patrick Moley - Piper Sandler & Co. - Analyst : But if we -- you keep adding features and bringing more value to Robinhood gold. It's remained at $5 a month. How are you feeling about pricing? Do you think that that's where you want to be? Or do you think that when we add a web platform, we add a credit card, we add these futures index options, do you think you can start adjusting pricing higher? How do you feel about that?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Let's talk about retail options trading. We've obviously seen a big spike over the last several years. There is sort of growing discussions about seeing 0DTE broaden out into single stocks. How do you think about that? I know there's some market structure hurdles that maybe could be overcome before we get there. Just what are your overall thoughts on that?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : So if we talk about -- do you think -- I asked Vlad about this on the call. But when you do introduce zero days to exploration trading and index options overall, do you think it will cannibalize your SPY option volume at all or any other sort of index options that your customers are trading, or you think it will be additive?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : So I think we have time for one more. I'll end on a big-picture question. You've done a lot to, I think, change the perception of what a Robinhood user is from 2021 in the meme-stock era. If we look out in five years, what do you think -- how do you think that compares today? What do you think the public perception of the Robinhood is?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Maybe one last one because we have some time. But we had dinner with Vlad last month. I think it was the first day that you had launched the credit card and the cash back for the test group. What have you seen in terms of customers getting cash back? Are they immediately turning around and trading it, and do you think that's a big growth driver going forward when you do roll that out?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Sure. All right, Steve, thanks so much for joining us over today.