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Robinhood Markets (HOOD)

Company profile

Ticker
HOOD
Exchange
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Robinhood Financial LLC • Robinhood Securities, LLC • Robinhood Crypto, LLC • Robinhood Money, LLC • Robinhood International, Inc. • Say Technologies LLC • Sherwood Reinsurance Company, Inc • Robinhood U.K. Ltd • Sherwood Netherlands B.V. • Sherwood Netherlands II B.V. ...
IRS number
464364776

HOOD stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

3 Aug 22
26 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 9.39B 9.39B 9.39B 9.39B 9.39B
Cash burn (monthly) 429.33M 61.25M 98M 206.02M (no burn)
Cash used (since last report) 1.23B 176.18M 281.88M 592.59M n/a
Cash remaining 8.15B 9.21B 9.1B 8.79B n/a
Runway (months of cash) 19.0 150.3 92.9 42.7 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
7 Sep 22 Daniel Martin Gallagher Jr RSU Class A Common Stock Grant Acquire A No No 0 609,137 0 609,137
7 Sep 22 Quirk Steven M. RSU Class A Common Stock Grant Acquire A No No 0 406,091 0 406,091
1 Sep 22 Frances X Frei Class A Common Stock Option exercise Acquire M No No 0 536 0 18,584
1 Sep 22 Frances X Frei RSU Class A Common Stock Option exercise Dispose M No No 0 536 0 4,827
1 Sep 22 Rubinstein Jonathan Class A Common Stock Option exercise Acquire M No No 0 4,528 0 4,528
1 Sep 22 Rubinstein Jonathan RSU Class A Common Stock Option exercise Dispose M No No 0 4,528 0 49,807
1 Sep 22 Jason Warnick Class A Common Stock Payment of exercise Dispose F No No 9.63 34,298 330.29K 463,197
1 Sep 22 Jason Warnick Class A Common Stock Option exercise Acquire M No No 0 82,411 0 497,495
1 Sep 22 Jason Warnick RSU Class A Common Stock Option exercise Dispose M No No 0 24,113 0 337,577
1 Sep 22 Jason Warnick RSU Class A Common Stock Option exercise Dispose M No No 0 43,714 0 218,573
90.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 319 285 +11.9%
Opened positions 101 74 +36.5%
Closed positions 67 74 -9.5%
Increased positions 79 90 -12.2%
Reduced positions 64 57 +12.3%
13F shares Current Prev Q Change
Total value 6.42B 7.57B -15.1%
Total shares 679.85M 551.9M +23.2%
Total puts 18.3M 20.8M -12.0%
Total calls 14.7M 24.39M -39.7%
Total put/call ratio 1.2 0.9 +46.0%
Largest owners Shares Value Change
Index Ventures VI 72.34M $1.28B 0.0%
Index Venture Associates VI 72.34M $594.63M NEW
Galileo (PTC) 58.06M $477.28M 0.0%
Emergent Fidelity Technologies 56.27M $589.75M NEW
New Enterprise Associates 15 48.07M $611.92M 0.0%
Vanguard 43.8M $360.05M +8.9%
ARK Investment Management 33.56M $337.58M +10.6%
Bullfrog Capital 32.07M $0 0.0%
CMTDF Sumitomo Mitsui Trust 23.4M $192.35M NEW
Nikko Asset Management Americas 23.4M $190.69M +2.1%
Largest transactions Shares Bought/sold Change
Index Venture Associates VI 72.34M +72.34M NEW
Emergent Fidelity Technologies 56.27M +56.27M NEW
NEA Management 0 -47.66M EXIT
CMTDF Sumitomo Mitsui Trust 23.4M +23.4M NEW
BLK Blackrock 11.82M +9.2M +351.0%
D1 Capital Partners 203.56K -6.97M -97.2%
STT State Street 5.57M +4.06M +266.9%
Renaissance Technologies 0 -3.92M EXIT
Vanguard 43.8M +3.58M +8.9%
Kim 3.41M +3.41M NEW

Financial report summary

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Risks
  • We have a limited operating history, which makes it difficult to evaluate our business and prospects and increases the risks associated with an investment in our Class A common stock.
  • We have grown rapidly in recent years and we have limited operating experience at our current scale. If we are unable to manage our business effectively, including the size of our workforce, our financial performance might suffer and our brand and company culture could be harmed.
  • We might not grow in line with historical rates.
  • Our results of operations and other operating metrics fluctuate from quarter to quarter, which makes these metrics difficult to predict.
  • We have incurred operating losses in the past and might not be profitable in the future.
  • Because a majority of our revenue is transaction-based (including PFOF), factors that affect transaction-based revenue—such as reduced spreads in securities pricing, reduced levels of trading activity generally, changes in our business relationships with market makers, and any new regulation of, or any bans on, PFOF and similar practices—might result in reduced profitability, increased compliance costs, and negative publicity.
  • As registered broker-dealers, we are subject to “best execution” requirements under SEC guidelines and FINRA rules. We could be penalized if we fail to comply with these requirements and these requirements might be modified in the future in a way that could harm our business.
  • We might need additional capital to provide liquidity and support business growth and objectives, and this capital might not be available to us on reasonable terms, if at all, might result in stockholder dilution, or might be delayed or prohibited by applicable regulations.
  • Unfavorable media coverage and other events that harm our brand and reputation could adversely affect our revenue and the size, engagement, and loyalty of our customer base.
  • Our business is subject to extensive, complex and changing laws and regulations, and related regulatory proceedings and investigations. Changes in these laws and regulations, or our failure to comply with these laws and regulations, could harm our business.
  • We operate in highly competitive markets, and many of our competitors have greater resources than we do and may have products and services that are more appealing than ours to our current or potential customers.
  • Our products and services rely on software and systems that are highly technical and have been, and may in the future be, subject to interruption and instability due to software errors, design defects, and other operational and technological failures, whether internal or external.
  • Our business could be materially and adversely affected by a cybersecurity breach or other attack involving our computer systems or data or those of our customers or third-party service providers.
  • The RHY spending account and Robinhood Cash Card subject us to risks related to bank partnerships and FDIC and other regulatory obligations.
  • Use of our payments services for illegal activities or improper purposes could harm our business.
  • Any failure to obtain, maintain, protect, defend or enforce our intellectual property rights could adversely affect our business.
  • Covenants in our credit agreements could restrict our operations and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted.
  • The trading price for our Class A common stock has been and might continue to be volatile and you could lose all or part of your investment.
Management Discussion
  • A discussion of our results for fiscal year 2020 compared to fiscal year 2019 can be found in our IPO prospectus, filed with the SEC on July 30, 2021, under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations — Comparison of the Years Ended December 31, 2019 and 2020." We do not believe the reclassification of the sub-categories within operating expenses has materially affected the continuing relevance of any of this discussion and any changes that would be necessary to reflect the revised subcategories are not material to an understanding of our business.
  • Transaction-based revenues increased by $682.2 million primarily driven by a 81% increase in Net Cumulative Funded Accounts which resulted in higher daily average revenue trades in cryptocurrencies, options, and equities.
  • We define “daily average revenue trades” as the total number of revenue generating trades executed during a given period divided by the number of trading days in that period. Our daily average revenue trades for cryptocurrencies increased significantly from 0.1 million to 1.2 million. The number of users placing cryptocurrency trades increased 455% while the average notional volume traded per trader was up 83%. In late December 2021, for the first time during the periods presented, we updated our pricing agreements with crypto market makers. Our rebate, which is subject to change from time to time, slightly more than doubled with these changes. We also added another venue to increase capacity and further improve competition for customer orders.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. senior Avg
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