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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Robin Hood did have a third quarter profited, beating it

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Speaker 2: income up two hundred and seventy one percent to five

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Speaker 2: hundred and fifty six million. Crypto revenue, however, did fall

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Speaker 2: short of estimates. That was even though it chumped three

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Speaker 2: hundred percent, So the margat was expecting quite a bit there,

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Speaker 2: But robin Hood shares a little bit softer after ours.

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Speaker 2: Let's get more. Now, bring in Bloomberg Tech co anchor

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Speaker 2: Ed Ludlow in San Francisco.

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Speaker 3: Ed, Yeah, thank you, team, and believe it or not,

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Speaker 3: you find me downtown at an in person earning score

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Speaker 3: of all things, where not just the institutional sell side participates,

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Speaker 3: but the institutional byside, the retail buyside, and robin Hood's customers.

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Speaker 3: They all got to post questions to Vlad Tenev, Robinhood CEO.

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Speaker 4: There's a lot of.

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Speaker 3: Emphasis on October strong third quarter, got that October October October.

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Speaker 3: So I think the best place to start is take

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Speaker 3: us through the lens of your customers what was happening,

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Speaker 3: and I'll tell you that the underlying trends, the behaviors

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Speaker 3: that you're saying.

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Speaker 1: I mean, first of all, thank you for being here

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Speaker 1: with us in person to celebrate retail investors being a

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Speaker 1: big part of the financial markets. October has been a

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Speaker 1: continued strong month, and then you notice Q three was

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Speaker 1: particularly strong, record net deposits, record trading revenues, revenues across

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Speaker 1: the board, prediction markets have also been on fire. So

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Speaker 1: what you're seeing is continued sustained engagement powered by the

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Speaker 1: Robinhood flywheel, more customers, deeper engagement, more Gold subscribers bringing

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Speaker 1: more assets, and the trading volumes have continued to increase

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Speaker 1: as well. So it's just been strong across the board.

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Speaker 1: I would say there's not one area that's particular outlier,

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Speaker 1: but continued strength across the board.

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Speaker 4: Markets are a tailwind and head right.

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Speaker 3: And so my question is what is and where is

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Speaker 3: the natural embedded hedge. If markets ton on you change direction,

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Speaker 3: what happens.

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Speaker 1: It's a good question, and we try not to get

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Speaker 1: so hung up on output metrics like trading volumes, because

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Speaker 1: trading volumes, as we've seen in the past, do tend

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Speaker 1: to fluctuate with market activity. That said, what we look

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Speaker 1: at is our market share, and we know that. You know,

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Speaker 1: even though trading volumes can go with markets and can

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Speaker 1: go up and down long term or huge beneficiaries of

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Speaker 1: both the growth in the US economy and also the

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Speaker 1: generational wealth transfer where hundreds north of one hundred trillion

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Speaker 1: of assets and wealth is going to be handed down

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Speaker 1: from older generations to younger generations. These younger generations are

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Speaker 1: folks that are digitally native, tech savvy. They don't particularly

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Speaker 1: really want to do their finances at brick and mortar

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Speaker 1: institutions in person, and they really values or experience and cost.

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Speaker 1: And so I think we track our market share, which

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Speaker 1: has been growing pretty much across the board, across every asset.

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Speaker 1: We're now up to a third of a trillion in

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Speaker 1: assets held at robin Hood, which has been extraordinary in

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Speaker 1: terms of growth as well. And then there's the secular

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Speaker 1: tailwinds of you know, the US economy still remains the

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Speaker 1: hotbed of innovation. It's where it's the epicenter of AI

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Speaker 1: electric vehicles innovation, and I think young people are going

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Speaker 1: to be the generation inheriting all of this wealth.

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Speaker 4: So Robin at the center.

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Speaker 3: Because of young people in generation that's driving what you're

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Speaker 3: seeing in prediction markets. I don't want to recount the

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Speaker 3: data too much they but just in a month, folk

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Speaker 3: tell you contracts and predictions have it clipped what you

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Speaker 3: did in.

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Speaker 4: The entire thad quota.

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Speaker 3: So maybe talking about some of the underlying trends and

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Speaker 3: activity would give us a better understanding of who's driving

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Speaker 3: it and what's happening.

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Speaker 4: Yeah, that's right, Ed.

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Speaker 1: I think the interesting thing about prediction markets is it

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Speaker 1: rounds out the offering in sort of like completes the

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Speaker 1: time at which Robinhood customers can continue to engage with

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Speaker 1: the platform. For a while, we were offering predominantly US equities,

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Speaker 1: which was very much a US East Coast working hours

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Speaker 1: type of event. Markets are open, you know, nine to

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Speaker 1: four East Coast hours, and then we've expanded that over

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Speaker 1: time with us introducing twenty four hour market, we've added

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Speaker 1: crypto and now prediction markets. A lot of the events,

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Speaker 1: particularly in sports, are happening nights and weekends, so Robinhood

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Speaker 1: is becoming increasingly a twenty four to seven platform where

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Speaker 1: you can trade and invest global markets at all times

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Speaker 1: of the day. And I think our customers do tend

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Speaker 1: to be digitally native and quite savvy. That tends to

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Speaker 1: lean younger, but we also have customers that are in

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Speaker 1: their seventies and eighties, and as long as you're comfortable

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Speaker 1: doing your finances on a mobile device and you want

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Speaker 1: to be at the frontier of technology, I think it's

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Speaker 1: something that transcends just young people. Of course, we always

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Speaker 1: want to be relevant to the next generation. But Robinhood,

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Speaker 1: I feel like you should be at a disadvantage if

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Speaker 1: you're using any other platform.

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Speaker 4: I think that's increasing.

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Speaker 3: The competition is sleeping on this a little bit right

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Speaker 3: that you think you can build the financial super app

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Speaker 3: for an entire family, multiple generations, to participate in different

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Speaker 3: products and categories.

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Speaker 4: Why have you got an advantage in going off to that.

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Speaker 1: Well, I think that nobody has our combination of product

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Speaker 1: depth and product velocity. So we have a lot of products.

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Speaker 1: We still have a huge amount left to build, but

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Speaker 1: if you think about what we offer now, I think

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Speaker 1: we have the best banking product out on the market

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Speaker 1: that's being rolled out. I think we have the best

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Speaker 1: credit card with three percent cash back on all categories

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Speaker 1: that just passed half a million card holders and eight

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Speaker 1: billion and annualized spend. We've always been strong across investing

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Speaker 1: in trading and now retirement as well. You know, twenty

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Speaker 1: five billion of assets that customers are entrusting with us

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Speaker 1: in retirement accounts at is a big number, and this

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Speaker 1: is like very serious, long term money. I think we

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Speaker 1: have the best digital advisor with Robinhood Strategies. Where every

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Speaker 1: other advisor charges you more the more money you have

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Speaker 1: on the platform. Robinhood Strategies inverts that model, and once

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Speaker 1: you get to one hundred thousand managed, everything above that

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Speaker 1: has no management feed. So the incentive is actually to

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Speaker 1: grow with us, and we want to make it a

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Speaker 1: no brainer.

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Speaker 4: To have all of your assets under Robinhood.

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Speaker 3: This is very much tuget at the individual. You have

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Speaker 3: a ten year plan where within ten years you want

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Speaker 3: more than half of revenue to come from the institutional

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Speaker 3: side and from international markets, not just the United States.

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Speaker 4: So what's the roadmap to get there?

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Speaker 1: Yeah, I mean I think that somewhat paradoxically. You might

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Speaker 1: not expect this, but that road mask it is paradoxical. Well,

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Speaker 1: the roadmap is really continuing to build for retail for

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Speaker 1: the time being, because when we talk to our institutional

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Speaker 1: potential customers actually a lot of them are in this

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Speaker 1: room and they've come up and they said, we would

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Speaker 1: love to use, you guys for an institutional offering. You know,

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Speaker 1: they might be using a legacy provider where they can't

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Speaker 1: trade twenty four to five, or they're not getting good

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Speaker 1: stock loan rates, or the margin rates are not good.

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Speaker 1: And pretty much nobody has a unified offering between crypto

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Speaker 1: and traditional assets, which I think is being increasingly valuable.

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Speaker 1: So the things that we're offering to retail, rock bottom

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Speaker 1: margin rate's, great user experience twenty four are access to

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Speaker 1: all markets are things that institutional wants as well. And

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Speaker 1: I think for the time being, we're in this great position.

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Speaker 1: We have so much to do on retail that we

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Speaker 1: want to stay very focused for that. But we have

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Speaker 1: been building out our institutional business with bitstamp, which is

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Speaker 1: now you know, was the tenth business line to get

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Speaker 1: to above one hundred million in annualized revenue, Prediction Markets

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Speaker 1: being the eleventh. So I think before long you'll see

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Speaker 1: that really continue to accelerate and become a bigger chunk

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Speaker 1: of what we're offering.

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Speaker 3: Lat Tenef is the Robin Hood CEO, and is he

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Speaker 3: just pointed to prediction markets also eight one hundred millionized

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Speaker 3: eight one hundred million annualized revenue and I think run

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Speaker 3: rate wise three hundred million.

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Speaker 4: A lot of focus on that right now,