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Robin Hood did have a third quarter profited, beating it income up two hundred and seventy one percent to five hundred and fifty six million. Crypto revenue, however, did fall short of estimates. That was even though it chumped three hundred percent, So the margat was expecting quite a bit there, But robin Hood shares a little bit softer after ours. Let's get more. Now, bring in Bloomberg Tech co anchor Ed Ludlow in San Francisco.
Ed, Yeah, thank you, team, and believe it or not, you find me downtown at an in person earning score of all things, where not just the institutional sell side participates, but the institutional byside, the retail buyside, and robin Hood's customers. They all got to post questions to Vlad Tenev, 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 the lens of your customers what was happening, and I'll tell you that the underlying trends, the behaviors that you're saying.
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, and then you notice Q three was particularly strong, 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.
Markets are a tailwind and head right.
And so my question is what is and where is the natural embedded hedge. If markets ton on you change direction, what happens.
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 or huge beneficiaries of both the growth in the US economy and also the generational wealth transfer where hundreds north of one hundred trillion of assets and wealth is going to be handed down from older generations to younger generations. These younger generations are
folks that are digitally native, tech savvy. They don't particularly really want to do their finances at brick and mortar institutions in person, and they really values or 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 robin Hood, which has been extraordinary in
terms of growth as well. And then there's the 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 at the center.
Because of young people in generation that's driving what you're seeing in prediction markets. I don't want to recount the data too much they but just in a month, folk tell you contracts and predictions have it clipped what you did in.
The entire thad quota.
So maybe talking about some of the underlying trends and activity would give us a better understanding of who's driving it and what's happening.
Yeah, that's right, Ed.
I think the interesting thing about prediction markets is it rounds out the offering in sort of like completes the time at which Robinhood customers can continue to engage with the platform. For a while, we were offering predominantly US equities, which was very much a US East Coast working hours type of event. Markets are open, you know, nine to four East Coast hours, and then we've expanded that over time with us introducing twenty four hour market, we've added
crypto and now prediction markets. A lot of the events, particularly in sports, are happening nights and weekends, so Robinhood is becoming increasingly a twenty four to seven platform where you can trade and invest global markets at all times of the day. And I think our customers do tend
to be digitally native and quite savvy. That tends to lean younger, but we also have customers that are in their seventies and eighties, and as long as you're comfortable doing your finances on a mobile device and you want to be at the frontier of technology, I think it's something that transcends just young people. Of course, we always want to be relevant to the next generation. But Robinhood, I feel like you should be at a disadvantage if you're using any other platform.
I think that's increasing.
The competition is sleeping on this a little bit right that you think you can build the financial super app for an entire family, multiple generations, to participate in different products and categories.
Why have you got an advantage in going off to that.
Well, I think that nobody has our combination of product depth and product velocity. So we have a lot of products. We still have a huge amount left to build, but if you think about what we offer now, I think we have the best banking product out on the market that's being rolled out. I think we have the best credit card with three percent cash back on all categories that just passed half a million card holders and eight billion and annualized spend. We've always been strong across investing
in trading and now retirement as well. You know, twenty five billion of assets that customers are entrusting with us in retirement accounts at is a big number, and this is like very serious, long term money. I think we have the best digital advisor with Robinhood Strategies. Where every other advisor charges you more the more money you have on the platform. Robinhood Strategies inverts that model, and once you get to one hundred thousand managed, everything above that
has no management feed. So the incentive is actually to grow with us, and we want to make it a no brainer.
To have all of your assets under Robinhood.
This is very much tuget at the individual. You have a ten year plan where within ten years you want more than half of revenue to come from the institutional side and from international markets, not just the United States.
So what's the roadmap to get there?
Yeah, I mean I think that somewhat paradoxically. You might not expect this, but that road mask it is paradoxical. Well, the roadmap is really continuing to build for retail for the time being, because when we talk to our institutional potential customers actually a lot of them are in this room and they've come up and they said, we would
love to use, you guys for an institutional offering. You know, they might be using a legacy provider where they can't trade twenty four to five, or they're not getting good stock loan rates, or the margin rates are not good. And pretty much nobody has a unified offering between crypto and traditional assets, which I think is being increasingly valuable. So the things that we're offering to retail, rock bottom margin rate's, great user experience twenty four are access to
all markets are things that institutional wants as well. And I think for the time being, we're in this great position. We have so much to do on retail that we want to stay very focused for that. But we have been building out our institutional business with bitstamp, which is now you know, was the tenth business line to get to above one hundred million in annualized revenue, Prediction Markets
being the eleventh. So I think before long you'll see that really continue to accelerate and become a bigger chunk of what we're offering.
Lat Tenef is the Robin Hood CEO, and is he just pointed to prediction markets also eight one hundred millionized eight one hundred million annualized revenue and I think run rate wise three hundred million.
A lot of focus on that right now,