Jordan Bevan
What is Robinhood app?
Robinhood is a popular commission-free stock trading and investing app letting users understand the financial markets, invest in stocks, options, and ETFs (funds), and manage portfolios in a single app. Founded in 2013 in San Francisco, the trading and investing app offers plenty of products under the Robinhood umbrella for different customer needs.
Robinhood Products
Robinhood Stocks & Funds: helping users invest in individual companies or bundles of investments (ETFs)
Robinhood Options: enabling commission-fee options trading, with no per-contract fees. Users can manage their options easily and execute sophisticated strategies including iron condors, straddles, and strangles.
Cash Management: providing 0.30% annual percentage yield (APY) based on uninvested cash in a brokerage account. Users are not required to have account minimums, pay transfer fees and foreign transaction fees.
Robinhood Crypto: enabling users to buy and sell cryptocurrencies including Bitcoin, Ethereum, and Dogecoin, for commission-free.Robinhood Gold: is Robinhood’s paid subscription package starting at $5/mo. Via Robinhood Gold, users can access professional research reports, trade on margin giving extra buying power and less time waiting to access deposited funds, and make $5K – $50K instant deposits.
Robinhood Company Overview
| Headquarter | Menlo Park, California |
| Platforms | Mobile, PC, Tablets |
| Number of Employees | 1500+ |
| Website | https://robinhood.com |
| Founded Date | 2013 |
| Founders | Baiju Bhatt, Vlad Tenev |
| Crunchbase Profile | Profile Link |
| Google Play | Store Link |
| App Store | Store Link |
How Robinhood Makes Money
+ Robinhood generates revenue from the following channels:
+ Robinhood Gold, its monthly paid subscription package starting a $5/mo
+ Interchange fees from purchases made with the Cash Management debit card and fees from program banks
+ Rebates from market makers and trading venues
+ Income generated from cash
+ Stock loan income from counterparties
Robinhood Revenue Statistics (2022)
+ Robinhood revenue for Q2 2022 was $318 million, up 6%. However, its transaction-based revenues decreased 7% sequentially to $202 million for the second quarter.
| Robinhood Revenue | |
| Q2 2022 | $318 million |
| Q1 2022 | $299 million |
| Q4 2021 | $363 million |
| Q3 2021 | $365 million |
| Q2 2021 | $565 million |
| Q1 2021 | $522 million |
| Q4 2020 | $318 million |
| Q3 2020 | $270 million |
| Q2 2020 | $244 million |
| Q1 2020 | $128 million |
+ At the beginning of August 2022, Robinhood announced that it has laid off 23% of its workforce as the 40-year high inflation and the crypto market crash resulted in a lower number of users trading on the platform.
+ Robinhood reported an ARPU (average revenue per user) of $56 for Q2 2022.
| Robinhood ARPU | |
| $56 | |
| Q1 2022 | $53 |
| Q4 2021 | $64 |
| Q3 2021 | $65 |
| Q2 2021 | $112 |
| Q1 2021 | $103 |
+ (29.07.2021) Robinhood ended its first day as a public company 8.4% below its initial public offering price. The shares, which opened at the $38 offer price, closed at $34.82 in New York, giving the company a market value of $29 billion. (Bloomberg)
+ In August 2020, Robinhood’s valuation reached $11.2 billion following a $200 million funding round, up by nearly one third from a previous injection of funds just a month ago. (Financial Times)
+ In September 2020, Robinhood raised additional $460 million Series G funding, at an $11.7 billion post-money valuation. (Techcrunch)
Robinhood User Statistics (2022)
+ Robinhood’s monthly active users decreased 1.9 million sequentially to 14.0 million for Q2 2022.
| Robinhood MAUs | |
| Q2 2022 | 14 million |
| Q1 2022 | 15.9 million |
| Q4 2021 | 22.7 million |
| Q3 2021 | 18.9 million |
| Q2 2021 | 21.3 million |
| Q1 2021 | 17.3 million |
+ Net cumulative funded accounts on Robinhood 22.9 million for the second quarter of 2022, an increase of 100 thousand sequentially.
| Net Cumulative Funded Accounts | |
| Q2 2022 | 22.9 million |
| Q1 2022 | 22.8 million |
| Q4 2021 | 22.7 million |
| Q3 2021 | 22.4 million |
| Q2 2021 | 22.5 million |
| Q1 2021 | 22.7 million |
+ Robinhood stated that 9.5 million users traded cryptocurrency on its platform during the Q1 2021, approximately six-fold increase from the previous quarter. (Reuters)
+ In February 2021, Robinhood revealed it had reached six million new customers on Robinhood Crypto in the first two months of 2021.
+ Robinhood app was downloaded 2.1 million times in the US on the Google Play Store and Apple’s App Store in the week to January 31, 2021 according to data from Sensor Tower. This marks a 394% jump from the previous week for the San Francisco-based online broker. (Insider)
+ In January 28, 2021, the trending investment & trading app Robinhood rose to the #1 on the App Store for the first time ever since its release. While the app had its most single day downloads with over 120k first time installs, it also broke a new record with over 2.6 million daily active users. (Mobile Marketing Reads)
+ In May 2020, the number of Robinhood accounts reached 13 million, up from 10 million at the end of 2019. (The New York Times)
+ The time spent in Robinhood increased by 260% in the United States in April 2020, due to COVID-19.
+ An average customer age of Robinhood is 31 and half of its customers had never invested before. (The New York Times)
+ Robinhood capitalized on the market volatility surrounding the coronavirus in March, seeing weekly U.S. App Store downloads surpass 400K in consecutive weeks. (Sensor Tower)
+ In Q1 2020, Robinhood users traded nine times as many shares as E-Trade customers, and 40 times as many shares as Charles Schwab customers, per dollar in the average customer account in the most recent quarter. (The New York Times)
+ In June 2020, a 20-year-old Robinhood customer died by suicide after he mistakenly thought he had lost $730,000 on a Robinhood trade. (Forbes)
Robinhood News
Robinhood tests crypto wallet and crypto transfer features
Robinhood rolls out crypto recurring investments feature
Robinhood acquires Say Technologies for $140 million
Robinhood rolls out IPO Access to let users buy stocks at IPO price
Robinhood files confidentially for an IPO
Elon Musk’s chat with Robinhood CEO sparks a scramble for invitations to Clubhouse
