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 Q1 2022 decreased 43% to $299 million, compared with $522 million in the first quarter of 2021. (Robinhood) Transaction-based revenues decreased 48% to $218 million, compared with $420 million in the first quarter of 2021.
| Robinhood Revenue | |
| 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 |
+ Robinhood reported an ARPU (average revenue per user) of $53, down 62% as compared to the first quarter of 2021.
| Robinhood ARPU | |
| Q1 2022 | $53 |
| Q4 2021 | $64 |
| Q3 2021 | $65 |
| Q2 2021 | $112 |
| Q1 2021 | $103 |
+ Robinhood recorded revenue of $365 million in Q3 2021, a 35% drop versus $565 million during the prior quarter. On a year-over-year basis, revenue climbed 35% from $270 million in the third quarter of 2020. The popular trading company reported a net loss of $1.3 billion for the third quarter, or $2.06 per diluted share, which the company attributed to expenses tied to share-based compensation.
+ In Q3 2021, Robinhood reported that cryptocurrency trading tumbled 78% to $51 million from $233 million the quarter before. On a year-over-year basis, cryptocurrency trading increased 860%, compared to $5 million in the third quarter of 2020.
+ As of September 30, 2021, Robinhood’s average revenues per user (ARPU) decreased 36% to $65, compared with $102 in the third quarter of 2020.
+ (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)
+ Average transaction size on Robinhood in the first two months of 2021 was around $500.
+ Robinhood generated $221 million in revenue in Q4 2020 by selling its customer trade order flow to Wall Street firms, up $27 million / 14% versus Q3.
+ 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’s trading revenue reached $180 million in the second quarter of 2020. Of Robinhood’s $180 million revenue, $111 million came from Options. (Forbes)
+ Robinhood had 4.31 million DARTs (daily average revenue trades in June 2020, with the company adding that “DARTs in Q2 more than doubled compared to Q1” in an email. (Techcrunch)
Robinhood User Statistics (2022)
+ Robinhood’s monthly active users decreased 10% to 15.9 million for Q1 2022.
| Robinhood MAUs | |
| 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 increased 27% to 22.8 million for Q1 2022.
| Net Cumulative Funded Accounts | |
| 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.
+ Robinhood reached three million funded accounts in the first four months of 2020. Its three most active trading days of all time came in June, 2020. (Forbes)
+ In June 2020, Robinhood was ranked #4 in the U.S. among top fintech apps by downloads. (SensorTower)
+ 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)
+ Robinhood saw around 95 million trades during June’s 2020 trading day. (Techcrunch)
+ 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
