Robinhood Markets, Inc. Stock Price, News & Analysis

Robinhood Markets reported a 35% increase in total net revenues for Q3 2021, reaching $365 million, compared to $270 million in Q3 2020. However, the firm experienced a net loss of $1.32 billion, or $2.06 per diluted share, contrasting with a $11 million loss in the same quarter last year. While transaction-based revenues grew 32% to $267 million, revenues from equities decreased 27% to $50 million. Monthly Active Users rose 76% to 18.9 million, and assets under custody increased 115% to $95 billion.

Robinhood Markets (NASDAQ: HOOD) will release its Q3 2021 financial results on October 26, 2021. The earnings conference call is scheduled for 2:00 PM PT/5:00 PM ET on the same day, with a live webcast available on investors.robinhood.com.

Shareholders can submit questions via a dedicated Q&A platform starting on October 19, 2021. This platform will close for submissions on October 25, 2021, allowing management to address popular inquiries during the call.

On October 8, 2021, Robinhood filed a second amendment to its Form S-1 registration statement with the SEC for the resale of Class A common stock by certain shareholders. The filing relates to shares received from the automatic conversion of Tranche I convertible notes linked to Robinhood's IPO. These shares are subject to a lock-up period until 28 days post-effectiveness of the Resale S-1, which is expected on October 13, 2021. Following the expiration of this lock-up, shares can be sold publicly under Rule 144, starting October 27, 2021.

On September 1, 2021, Robinhood Markets filed an amendment to its Resale S-1 with the SEC, initially submitted on August 5, 2021. This amendment includes the second quarter 2021 financial results and registers the resale of Class A common stock by certain shareholders. Robinhood will not sell additional securities through this filing, nor does it represent a follow-on offering. Sales cannot proceed until the SEC reviews and declares the statement effective, a timeline for which remains uncertain.

Robinhood announced the partial exercise of its IPO underwriters' over-allotment option, leading to the purchase of 4,354,194 shares of Class A common stock at $38.00 per share. The transaction is expected to yield approximately $158.5 million in net proceeds, which will be completed on August 31, 2021. The IPO underwriters include Goldman Sachs, J.P. Morgan, Barclays, Citigroup, and Wells Fargo Securities. This transaction is a significant step in Robinhood's efforts to expand its financial operations and maintain market momentum.

Robinhood reported Q2 2021 financial results showing a 131% increase in net revenues to $565 million, up from $244 million in Q2 2020. Transaction-based revenues rose 141% to $451 million. However, it faced a net loss of $502 million, compared to a net income of $58 million the previous year. Monthly Active Users grew 109% to 21.3 million, and Assets Under Custody surged 205% to $102 billion. The company anticipates lower revenues due to seasonal headwinds and has filed a registration statement for shareholder stock sales.

On August 11, 2021, Robinhood Markets (NASDAQ: HOOD) announced the launch of a Q&A platform for shareholders to submit and vote on questions for management ahead of its Q2 2021 earnings call, scheduled for August 18, 2021. The platform will be open for submissions from August 11 at 1:30 PM PT until August 17 at 2:00 PM PT. Selected questions will be addressed during the earnings call. This initiative aligns with Robinhood's mission to further democratize finance and enhance shareholder engagement.

Robinhood Markets (NASDAQ: HOOD) will release its Q2 2021 financial results on August 18, 2021, with a conference call at 2 PM PT/5 PM ET. A live webcast will be accessible at investors.robinhood.com. Additionally, the company filed a resale registration statement on Form S-1 with the SEC on August 5, 2021. This registration pertains to shares resulting from the conversion of Tranche I convertible notes, set to close with the IPO on August 2, 2021. No new shares are being sold at this time, pending SEC approval.

Robinhood Markets announced its IPO, pricing 55 million shares of Class A common stock at $38.00 each, generating approximately $1.89 billion in net proceeds. Of the shares, 52.375 million are offered by Robinhood and 2.625 million by existing shareholders. The underwriters have a 30-day option to purchase an additional 5.5 million shares. Proceeds will be used for working capital, hiring, and expanding customer support. Shares are set to begin trading on Nasdaq under the ticker symbol 'HOOD' on July 29, 2021, with the offering closing on August 2, 2021.