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Robinhood (HOOD) Q2 2021 earnings release reveals 21.3 million MAUs

Robinhood has reported their first earnings release as a publicly-traded company. Find out all of the highlights from the HOOD Q2 2021 results.

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Robinhood just reported their first-ever earnings release as a publicly-traded company. The financial custodian which rose to popularity during the Reddit meme stock revolution is finally it's own stock, and the company reported $565 million in revenue during the quarter with a loss of $2.16/share. Please take a look at the highlights.


Here are the Robinhood (HOOD) Q2 2021 earnings results:

  • Total net revenues increased 131% to $565 million in the second quarter of 2021, compared with $244 million in the second quarter of 2020.
  • Transaction-based revenues increased 141% to $451 million in the second quarter of 2021, compared with $187 million in the second quarter of 2020.
    • Options increased 48% to $165 million in the second quarter of 2021, compared with $111 million in the second quarter of 2020.
    • Cryptocurrencies increased to $233 million in the second quarter of 2021, compared to $5 million in the second quarter of 2020.
    • Equities transaction-based revenue decreased 26% to $52 million in the second quarter of 2021, compared with $71 million in the second quarter of 2020.
  • Loss before income taxes was $464 million in the second quarter of 2021, compared with income before taxes of $58 million in the second quarter of 2020. Costs associated with the change in fair value of convertible notes and warrant liability totaled $528 million in the second quarter of 2021.
  • Net loss was $502 million in the second quarter of 2021, or $2.16 per diluted share, compared with net income of $58 million, or $0.09 per diluted share in the second quarter of 2020.
  • Adjusted EBITDA (non-GAAP) was $90 million in the second quarter of 2021, compared with $63 million in the second quarter of 2020.
  • Net Cumulative Funded Accounts increased 130% to 22.5 million in the second quarter of 2021, compared with 9.8 million in the second quarter of 2020.
  • Monthly Active Users (MAU) increased 109% to 21.3 million in the second quarter of 2021, compared with 10.2 million in the second quarter of 2020.
  • Assets Under Custody (AUC) increased 205% to $102 billion in the second quarter of 2021, compared with $33 billion in the second quarter of 2020.
  • Average Revenues Per User (ARPU) was $112 in the second quarter of 2021, compared with $115 in the second quarter of 2020.

Some other interesting bits of news in the press release include a look into the cryptocurrency side of the business, as the company says, "The three months ended June 30, 2021 is the first quarter where a larger share of new customers placed their first trade in crypto rather than equities." Cryptocurrency transaction revenues came in at $233 million during the quarter, up from just $5 million in Q2 2020.

It's not all good in the hood for Robinhood going forward. The company's guidance was less than merry. "For the three months ended September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter."

Some things to note from the quarter include the tremendous growth in users to 21.3 million monthly active users, or MAUs. Assets under custody at Robinhood (HOOD) topped $102 billion during the quarter, up 205% from a year ago. MAUs showed 109% growth from Q2 2020, which is especially surprising given all of the terrible PR blunders at the company over the past year. Many Reddit investors boycotted the Robinhood IPO after the company halted trading of GameStop and other meme stocks back in January 2021.

Robinhood (HOOD) stock was down nearly 8% in afterhours trading follow the company's first public earnings release.
Robinhood (HOOD) stock was down nearly 8% in afterhours trading following the company's first public earnings release.

Robinhood's stock is currently trading nearly 8% lower in afterhours trading. Only time will tell if the bleeding will stop over there. Are you a Robinhood shareholder or user? Do you hate stocks? Let us know in the comments section below.

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