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Bloomberg Announcer (0:25)
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Bloomberg News Anchor (0:29)
News Robinhood did have a third quarter profit beat net income up 271% to 556 million. Crypto revenue, however, did fall short of estimates. That was even though it jumped 300%. So the market was expecting quite a bit there. But Robinhood shares a little bit softer after hours. Let's get more now. Bring in Bloomberg Tech co anchor Ed Ludlow in San Francisco.
Ed Ludlow (0:53)
Ed, yeah, thank you team. And believe it or not, you find me downtown at an in person earnings call of all things, where not just the institutional sell side participates, but the institutional buy side, the retail buy side and Robinhood's customers. They all got to pose questions to Vlad Teneff, Robinhood CEO There's a lot of emphasis on October, strong third quarter. Got that? October, October, October. So I think the best place to start is take us through through the lens of your customers. What was happening in October, the underlying trends, the behaviors that you're seeing.
Vlad Tenev (1:27)
I mean, first of all, thank you for being here with us in person to celebrate retail investors being a big part of the financial markets. October has been a continued strong month. I think you noticed Q3 was particularly strong. You know, record net deposits, record trading revenues. Revenues across the board. Prediction markets have also been on fire. So what you're seeing is continued sustained engagement powered by the Robinhood flywheel. More customers, deeper engagement, more gold subscribers bringing more assets. And the trading volumes have continued to increase as well. So it's just been strong across the board. I would say there's not one area that's particular outlier, but continued strength across the board.
Ed Ludlow (2:20)
Markets are a tailwind for Robinhood. Right. And so my question is what is and where is the natural embedded hedge? If markets turn on, you change direction, what happens?
Vlad Tenev (2:32)
It's a good question. And we try not to get so hung up on output metrics like trading volumes because trading volumes, as we've seen in the past, do tend to fluctuate with market activity. That said, what we look at is our market share. And we know that, you know, even though trading volumes can go with markets and can go up and down long term, we're huge beneficiaries of both the growth in the US Economy and Also the generational wealth transfer, where Hundreds north of 100 trillion of assets and wealth is going to be handed down from, from older generations to younger generations. These younger generations are folks that are digitally native, tech savvy. They don't particularly want to do their finances at brick and mortar institutions in person. And they really value user experience and cost. And so I think we track our market share, which has been growing pretty much across the board, across every asset. We're now up to a third of a trillion in assets held at Robinhood, which has been extraordinary in terms of growth as well. And then there's these secular tailwinds of, you know, the US economy still remains the hotbed of innovation. It's where it's the epicenter of AI, electric vehicles innovation. And I think young people are going to be the generation inheriting all of this wealth. So Robin is really at the center.