Robinhood Markets, Inc.

Thank you for standing by, and welcome to Robin Hood's fourth quarter and full year 2021 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 touchtone telephone. Please be advised that today's conference may be recorded. Should you require any further assistance, please press star 0. I would now like to hand the conference over to your host, Irvin Shaw. Please go ahead.

Thanks, Lateef, and welcome, everyone. And thank you for joining us for Robinhood's fourth quarter and full year 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 outlook for the first quarter and full year of 2022, as well as our strategic and operational plans. Actual results could differ materially from our expectations. We continue to monitor regulatory developments relating to market structure matters, such as statements from the SEC on payment for order flow and digital engagement practices. Other potential risk factors that could cause differences are described in our press release issued this afternoon, the related slide presentation on our investor relations website, our Form 10-Q filed October 29, 2021, and in our other SEC filings. We remind you that from time to time we intend to use our blog, Under the Hood, on our website at blog.robinhood.com as a means of disclosing material information to the public, and investors should routinely monitor our blog as information posted there could be deemed to be material information. All information on the call is as of today, January 27, 2022, and we undertake no duty to update for subsequent events except as required by law. As we discuss our results, all percentage growth comparisons will be to the same period in the prior year, unless otherwise noted. 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. Thanks, Irv, as always, and thanks, everyone, for joining today. I'd like to start by briefly reflecting on 2021, which has been a momentous year for us. We're really proud to have added over 10 million net funded accounts to Robinhood in 2021, with over half of them new to investing. We finished the year with 1.8 billion in total net revenues, up from 959 million in 2020. The story of the first half of 2021 was one of firming up our foundations and and putting ourselves in a strong position to accelerate product development and future growth. During the year, we've invested heavily in our platform, leading to high service reliability and uptime. We've made huge strides in education and customer service, including successfully adding 24-7 live phone support. We completed our acquisition of Say Technologies, which, as usual, will be on display in this earnings call. We more than doubled our team, including in important areas like engineering, product, customer service, and compliance. And we're continuing to add senior talent to help us take Robinhood to the next level. I'm especially excited to welcome Steve Quirk, who joined us this month as chief brokerage officer and a member of our senior management team. I want to take a moment to thank our employees. The work we've done in 2021, firming up our foundations while going through hyper growth, involved long nights and weekends and lots of personal sacrifice. We're starting to see the fruits of that work. In the third quarter, we started once again accelerating our product engine. This acceleration has continued through Q4 and into the new year. We're now in a position where much of our resources are going toward new product development and innovating for our customers. Here's some of the meaningful things we've delivered for customers in Q4. We recently introduced first trade recommendations, which helped new customers get started with a diversified ETF portfolio based on their risk profile and investment objectives. We've also introduced a cats in which enables our customers to transfer assets from other brokerages into Robin hood. We launched this a few weeks ago to a small set of customers and have been gradually expanding its availability with early results looking promising. We expect to complete the customer rollout later this quarter. In addition, We've made a number of enhancements to our options product, introducing options alerts, options watch lists, as well as a simple way to roll options contracts. We've made progress on our fully paid securities lending program. While we continue to discuss it with our regulators, we believe we will be able to launch the program during the first half of the year. We're also close to delivering a feature that our customers have been asking for, an even larger window of available trading hours. We call this feature hyper-extended hours and anticipate rolling it out later this quarter. And we added two new venues for executing equity trades, not only adding competition for customer orders, but improving our ability to handle surges in volume. We're also continuing to invest in crypto. We launched our public beta of crypto wallets earlier this month and plan to release the product to everyone later this quarter. Just in time for the holidays, we introduced crypto gifting, which we believe is the most seamless way for customers to send crypto to their family and friends. We've rolled out intelligent crypto price alerts, an often requested feature. And similar to equities, we added another venue for crypto, increasing capacity and liquidity for our crypto volume, increasing price competition for orders. As Jason will touch on in a moment, along with this change, we've improved the revenue share we receive from our venues. We continue to hear from customers that they want us to list more coins. We've been proactively engaging with regulators on this. They're expressing concerns about cryptocurrency platforms adding coins that the regulators believe are unregistered securities, and they're watching this space closely. That said, we have robust coin listing protocols in place. We're comfortable with how we've analyzed the coins currently on our platform. We've invested in the technology that will allow us to seamlessly add more coins, and we intend to add more coins going forward. Now, I'd like to talk about where we're going. I've talked a little bit already about how the foundation we built through most of 2021 has allowed us to invest more in product development in Q4. While we're proud of what we delivered in Q4, it's nothing compared to what we have planned for 2022 and beyond. Our work is focused on three things. One, being the best place to get started investing. Two, helping first-time investors grow into long-term investors. And three, continuing to serve our advanced investors with the power and simplicity they need. Over the next several years, we plan to create an ecosystem of financial products and services that will enable people across the world to become investors. We believe the products on our roadmap will go a long way toward making that a reality. Here are a few things you can expect in 2022. First, long-term investing. We're working to roll out more offerings that make investing routine, give people more ways to build wealth for the future, bring them closer to the companies they invest in. And as we mentioned last quarter, tax advantage retirement accounts are on the roadmap, and the teams are already hard at work to develop this functionality, and we'll begin rolling it out to customers mid-year. Second, spending and saving. In the coming months, we'll be introducing a new experience for day-to-day spending. With this new experience, we believe we can serve customers who aspire to be investors but aren't quite ready to set aside money to get started. We can help them build their portfolios while serving their daily spending needs, all with the delightful and innovative user experience they've come to expect from Robinhood. Next, payments. You've already begun to see some initial progress here with crypto gifting. It's really our first peer-to-peer product. We want to build upon this and make it easy for customers to send value to others. We also want to make it easier for customers to deposit and withdraw funds. Today, ACH is the primary way our customers move money, but it's slow. In 2021, customer deposits and withdrawals totaled $136 billion. We want to give customers faster ways to move their money, and in the next few months, we'll be introducing instant debit card deposit and withdrawals, and we'll look for additional rails from there. Finally, international. We believe serving customers across the globe is a big opportunity for us, and the investments we've made in crypto over the past year have put us in a great position to expand. In 2022, we've set aggressive goals to start opening our crypto platform up to customers internationally. This next phase of growth will not only be about adding new customers, but also deepening our relationship with the over 22 million customers we already have. We expect that our growth will continue to come in waves with periods of both outsized and slower growth, much of it linked to product launches, geographic expansion, and, of course, market factors. We will remain focused on our customers and delivering innovative products that make it easier for everyone to become an investor. With that, let me turn it over to Jason to discuss our financial results.