Robinhood Markets, Inc.

Thank you for standing by. My name is Catherine, and I will be your conference operator today. At this time, I would like to welcome everyone to the Robinhood Third Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remark, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. We ask that you please limit your questions to one and re-enter the queue for any additional questions that you may have. Thank you. I will now like to turn the call over to Chris Cagle, Vice President of Corporate, FTA, and Investor Relations. Please go ahead.

Thank you, Catherine, and thank you to everyone for joining Robinhood's Q3 earnings call. With us today are CEO and co-founder, Vlad Tenev, and CFO, Jason Warnick. Before getting started, I want to remind you that today's call will contain forward-looking statements. Actual results could differ materially from our expectations, and we have no duty to provide updates unless legally required. Potential risk factors that could cause differences, including regulatory developments that we continue to monitor, are described in the press release we issued today, the earnings presentation, and our SEC filings, all of which can be found at investors.robinhood.com. Today's discussion will also include non-GAAP financial measures. Reconciliations to the GAAP measures we consider most comparable can be found in the earnings presentation. With that, let me turn it over to Vlad.

Thanks, Chris. Hi, everyone. Let me start by reiterating Robinhood's three areas of focus. Number one, winning the active trader market. Number two, increasing wallet share with our customers. And number three, expanding internationally. In Q3, we continue to make progress on all of these fronts. In fact, our results after the first three quarters of the year have already broken through a number of full-year records. And we have another quarter in front of us to take these results even higher. Just to share a few examples. First, Q3 net deposits were $10 billion or more for the third straight quarter as we continue to increase wallet share. This brings us to $34 billion year-to-date, above our 2020 record of $31 billion, and also takes our customer assets under custody to a record high of $152 billion. Second, Q3 options contracts were up 47% year-over-year to a new record as we keep winning with active traders. This brings our year-to-date total to $1.2 billion contracts, edging out our full year high from 2021. And third, Q3 was another strong financial quarter with our second highest revenues ever. Revenues grew 36% year over year. Adjusted EBITDA increased 96% from a year ago. Looking year to date, revenues of nearly $2 billion have already broken last year's record of $1.9 billion. And GAAP diluted EPS of $0.55 is multiples of any prior year. It's energizing to see our business performing well like this, but we're even more excited about our product roadmap. A key part of increasing wallet share with customers is growing Robinhood Gold subscriptions, which hit an all-time high of $2.2 million in Q3. And one of the most exciting new parts of the gold program is our Robinhood Gold Card program. When I've talked to Robinhood customers in recent months, the gold card almost always comes up. If someone has it, they love it. If they don't have it, they want to know when they're going to get it. And I hear you. We're working hard to increase the rollout, but we're also being patient and carefully studying customer behavior as we grow so that we manage credit risk to profitably scale over time. While it's still early, I wanted to share some emerging data from our 100,000 gold card customers. First, customers love the gold card. App Store ratings continue to be five out of five with over 10,000 five-star reviews. Customers tell us they love the metal card, the digital app, and of course, the 3% rewards. Second, the early customer behavior is in line with our expectations. It looks like the gold card is top of wallet for most customers, and early data shows that we're retaining approximately 95% of gold card customers following their first transaction. We're also starting to see customer spending grow and loan balances revolve as expected. Third, Gold Card customers are also contributing meaningfully higher net deposits versus similar customers. It's great to see the early additional benefits to the platform. All in all, while it's still quite early, we're further increasing confidence that we can scale the Gold Card significantly over time. Now let me turn it over to Jason to review our financial results, and then I'll offer some additional thoughts.