Robinhood Markets, Inc.

Thank you for standing by, and welcome to Robin Hood's second quarter earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. Should you require any further assistance, please press star 0. I would now like to hand the conference over to your host, Head of Investor Relations and Capital Markets, Irvin Shah. Please go ahead.

Thanks, Lateef, and welcome, everyone, and thank you for joining us for Robinhood's second quarter 2021 earnings conference call. With us today are CEO and co-founder Vlad Tenev and CFO Jason Wernick. Before getting started, I want to remind you that today's presentation will contain forward-looking statements about Robinhood's expectations for the third quarter and as well as our strategic and operational plans. Actual results might differ materially from our expectations. Potential risk factors that could cause differences are described in the Form 10-Q we just filed with the SEC. All information on the call is as of today, August 18, 2021, and we undertake no duty to update it for subsequent events. Today's discussion will also include non-GAAP financial measures. Reconciliations to the GAAP results we consider most comparable can be found in the earnings presentation on our investor relations website at investors.robinhood.com. With that, let me turn it over to Vlad.

Thank you, Irv, and thank you to all of our listeners for joining Robinhood's first earnings call. Before sharing some of the highlights from Q2, I want to briefly introduce the company for those of you who are new to our story. We founded Robinhood on the belief that everyone should be welcome to participate in our financial system. The U.S. financial markets are one of the greatest sources of wealth creation in the world. However, access has been unevenly distributed with institutions and high net worth individuals enjoying better access and tools than others. We built Robinhood to fix that through a mobile first product that removes the economic, educational, and emotional barriers that have kept so many millions from participating. But our mission is bigger than investing. We want to become the most trusted and most culturally relevant money app worldwide. We believe we're already on the path and have many of the foundational elements in place, including a track record of attracting new customers to our platform, clear leadership in mobile, strong customer engagement, and a vertically integrated platform. For our quarterly updates, we're going to frame our progress through the lens of our four values – These values aren't just posters that we hang up on the wall in the office. We actually use them to allocate resources and to run our business. So in priority order, our first value is safety first. We've been allocating the majority of our resources here. So let me go through some of the progress we've made on safety first. Number one, stability and scale have been the highest priority for our engineering team for well over a year. We've continued to double down here. We've added engineering talent and filled important senior leadership roles, and we're methodically working to eliminate single points of failure, upgrade our systems, and enhance the redundancy and resiliency of our services. I'm especially pleased by the progress we've made with our crypto services in Q2, making them more resilient to surges in trading volume. Number two, we're also investing heavily in customer support. In the second quarter of this year, we expanded live phone support to additional high priority topics, and we're now serving customers on issues related to options trading, equities trading, and account security. We're working towards being able to provide 24-7 phone support for substantially all of our customer contacts by the end of the year. We're also eliminating reasons customers contact us. and are applying technology to increase the quality and speed of our customer service responses. And we've hired and trained hundreds of licensed representatives, doubling the size of our customer support team since the beginning of the year. We aren't done, though. We want the quality of customer service at Robinhood to be a reason customers stay with us over the long run. And number three. We remain focused on building educational content that helps first-time investors become long-term investors. This quarter, we started to roll out our first set of educational modules in the app, which allow customers to take quick, interactive courses on the basics of investing. We're continuing to build this out and look forward to introducing more advanced interactive learning tools in the coming months. So that's Safety First, our top values. Let me talk a little bit about our second value, participation as power. So this is our oldest value as a company, and it's focused on expanding access for customers worldwide. At Robinhood, everyone is treated equally, regardless of their income or wealth. And as we continue to build new products, you'll consistently see that at Robinhood, wealthier customers don't get a better deal. A great example of this is our new IPO access product, which lets our customers invest in companies at their IPO price before trading on public exchanges, just as institutional and high net worth investors have been able to do for decades. We view this as another meaningful step towards increasing access to financial markets for everyday investors. Six companies, excluding our own, have offered IPO shares to customers through IPO access so far. We've seen meaningful customer engagement on these deals, with our share of the allocations oversubscribed by greater than 5x on all six deals. We're pleased to see that about 80% to 85% of the allotted shares to our customers were still held 30 days following the IPO for the two deals that priced in Q2. We're optimistic that more and more new issuers will view Robinhood as a way to better align themselves with their retail shareholders. We're also encouraged to see the response from customers to our cash management product, which grew to over 5 million customers at the end of Q2. So that's participation is power. Now for our third value, radical customer focus. So we exist to make our customers happy. We listen to customers. We innovate on their behalf to deliver more products and features that deepen our relationship with them. Our customers are showing a lot of interest in crypto. In fact, This is the first quarter where we saw a larger share of new customers place their first trade in crypto rather than in equities. And our customers are asking for more from us. We're investing heavily in our team. We're working on rolling out new crypto features, such as more coins, recurring investments, the ability to deposit and withdraw your crypto. We're excited about the future of our crypto product. And now, a bit on our final value, first principles thinking. So our foundation is in art, math, and physics. We have a deep appreciation for breaking down complex problems and finding new ways to solve them. While we do place close attention to what others have been doing, we strive to make bold bets that challenge the status quo, regardless of how difficult the challenge is. We believe that over time, our first principles thinking will be a bigger and bigger differentiator for us. Now before I hand it off to Jason, I'd like to take this moment to welcome the team at Say Technologies. We are thrilled to have Say join our team and excited by the possibilities of connecting Robinhood customers more deeply with the companies they invest in. With Say's Q&A technology, retail customers can engage with company management, ask questions, and have their voices heard. And with Say's focus on proxy services, We think there's a really interesting opportunity for us to make it simple for retail investors to exercise their right to vote, truly empowering them like never before. With that, let me turn it over to Jason to discuss our second quarter financial results.