MENLO PARK, Calif. - Robinhood (NASDAQ:HOOD) Markets, Inc. (NASDAQ: HOOD), a financial services company, disclosed its monthly operating data for April 2024, revealing a growth in funded customers but a decrease in assets under custody compared to the previous month. The company reported a customer base of 24.0 million funded customers at the end of April, marking an increase from March 2024.
Assets under custody (AUC) stood at $123.3 billion, showing a 5% decline from March 2024. Despite the drop in AUC, Robinhood saw net deposits amounting to $4.9 billion in April, indicating a 45% annualized growth rate compared to March 2024 AUC. Over the past year, net deposits have totaled $27.4 billion, reflecting an annual growth rate of 35% relative to April 2023 AUC.
Trading activity in April varied across different asset classes. Equity notional trading volumes decreased by 17% to $70.7 billion, while options contracts traded experienced a 7% increase to 126.6 million. In contrast, crypto notional trading volumes saw a significant reduction, falling 57% to $10.1 billion.
The company's margin balances remained stable at $4.1 billion, unchanged from March 2024. Total cash sweep balances, however, inched up by 1% to $19.1 billion at the end of April.
Securities lending revenue for Robinhood in April was reported at $21 million, a 24% increase from the previous month.
This information, based on a press release statement, is unaudited and preliminary, subject to financial closing procedures. The final results for the most recent fiscal quarter could vary from these initial figures as reported in Robinhood's regulatory filings with the U.S. Securities and Exchange Commission.
Robinhood's mission is to democratize finance for all, offering services such as commission-free trading in the U.S. and other financial products across various platforms. The company encourages investors to monitor its Investor Relations website and Newsroom for material information, in compliance with the SEC's Regulation Fair Disclosure.
InvestingPro Insights
As Robinhood Markets , Inc. (NASDAQ: HOOD) continues to navigate the dynamic financial landscape, the latest operational data reflects a mixed picture of customer growth and trading activity. To provide further context, InvestingPro has highlighted some metrics and tips that could help investors gauge the company's performance and potential.
Robinhood's market capitalization stands at a robust $16.28 billion, signaling investor confidence in its business model and growth prospects. The company's P/E ratio, however, is relatively high at 128.16 for the last twelve months as of Q1 2024, suggesting that the stock may be trading at a premium compared to its earnings. This is corroborated by a PEG ratio of 1.14, indicating that the price may be high relative to the company's earnings growth rate.
InvestingPro Tips indicate that analysts are optimistic about Robinhood's earnings, with three analysts revising their earnings projections upwards for the upcoming period. Additionally, the company is predicted to be profitable this year, which could be a turning point for investors looking for long-term value.
Despite the high earnings multiple, Robinhood has demonstrated strong return over the last three months with a 34.28% price total return, and an even more impressive six-month price total return of 116.33%. This performance reflects a substantial price uptick and may capture investor sentiment around the company's growth trajectory and market positioning.
For investors seeking a deeper dive into Robinhood's financial health and future outlook, there are 11 additional InvestingPro Tips available. These insights can be accessed by visiting InvestingPro, where users can utilize the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive suite of tools and analytics to inform investment decisions.
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