In a very difficult economic environment, Robinhood (NASDAQ:HOOD) has published select data points highlighting platform operations.
According to the trading platform:
- Net Cumulative Funded Accounts (NCFA) at the end of November were 23.0 million, up approximately 40 thousand from October 2022.
- Monthly Active Users (MAU) at the end of November were 12.5 million, unchanged from the end of October 2022.
- Assets Under Custody (AUC) at the end of November were $70.2 billion, unchanged from the end of October 2022.
- Net Deposits were $1.7 billion in November, translating to a 28% annualized growth rate relative to October 2022 AUC. Over the last twelve months, Net Deposits were $18.9 billion, translating to an annual growth rate of 18% relative to November 2021 AUC.
- Notional Trading Volumes – which are the primary driver of transaction revenues – were higher in November for options and crypto from October 2022, and lower for equities. Equities were $44.7 billion (down 4%), Option contracts were 81.8 million (up 4%), and Cryptocurrencies were $5.7 billion (up 60%).
- Margin Balances at the end of November were $3.5 billion, down $0.3 billion from the end of October 2022. Cash Sweep Balances at the end of November were $5.0 billion, up $1.2 billion from the end of October 2022. Since the end of Q3, the $2.0 billion increase in cash sweep balances through the end of November was primarily driven by customers depositing cash following the introduction of the Gold cash sweep program, leading total Cash Held by Users to increase by $2.2 billion over the same period, from $8.1 billion to $10.3 billion.
So more users are parking cash, and reducing leverage in a risk off move.
Funded accounts moved slightly higher.
Crypto trading could be customers fleeing sinking digital asset markets.
As for Robinhood’s share price, well it started the year at over $15. Today, shares are priced around $9. Down, just like the entire market.