The Robinhood (HOOD.US) 2024 Q4 financial report conference call: Currently, the number of Gold card holders has exceeded 100,000.

In recent days, Robinhood (HOOD.US) held its fourth quarter 2024 earnings conference call. Robinhood mentioned that the credit card for HOOD Gold members will soon be rolled out to a wider user base. Currently, there are over 100,000 Gold card holders, and the company's goal is to double that number in the coming months, while balancing the pace of promotion with cautious spending and borrowing activities. Robinhood plans to enhance information, research, and tools within the app, including fundamental analysis and more detailed financial data charts. These features are expected to be further developed and shared at the HOOD Summit later this year. Q&A Q: When will the Gold Credit Card be available? A: The credit card for HOOD Gold members will soon be rolled out to a wider user base. Currently, there are over 100,000 Gold card holders, and the company's goal is to double that number in the coming months, while balancing the pace of promotion with cautious spending and borrowing activities. (PS: Second line of business promotion) Q: Is the stock analysis feature improving? A: Robinhood plans to enhance information, research, and tools within the app, including fundamental analysis and more detailed financial data charts. These features are expected to be further developed and shared at the HOOD Summit later this year. Q: Lending business (small loans, automatic loans)? A: Lending is an essential part of capturing a share of the user's wallet. The goal is to meet customers' borrowing needs in the long term. Currently, the company's focus is on financing products and credit cards, with plans to expand into a wider range of lending services once these products mature. Q: What are the obstacles to achieving the goal of capturing the largest share of the wallet market? A: The company faces challenges including competition, as well as the need for technological innovation and investment, especially in artificial intelligence and encryption technology. Robinhood's goal is to accelerate product and feature development to capture a share of the over $84 trillion in assets flowing to the younger generation. Q: Sports contracts? A: Predictions are important in this business, as well as news and information. Robinhood plans to continue innovating in prediction markets (including sports betting). The company's goal is to launch a comprehensive sports platform later this year, but this will depend on clear regulations from regulatory authorities. Q: What is the clarity needed in terms of regulations? Launch of Crypto and staking? A: There is no technical difficulty in launching new trading coins and betting contracts. We have the infrastructure, and you can see that we pushed the Trump coin very quickly. With increasing regulatory clarity, Robinhood will accelerate the launch of cryptocurrency tokens. A comprehensive set of rules and regulations is needed for listing cryptographic asset securities, which will allow the company to tokenize private companies and public securities, and the company has the technical capability to rapidly increase tokens and is researching the tokenization of real-world assets. While waiting for guidance from regulatory authorities, staking is also being considered, but more policy clarity is still needed. Q: Crypto pricing strategy? Future price trends? A: Robinhood is trying to balance customer value and shareholder returns through pricing. The recently launched Smart Exchange Routing is preparing for integrationwhen the company integrates Bitstamp and starts the exchange business, it will also integrate Robinhood Legend (our platform for active desktop traders). Q: Competition landscape in Crypto? A: There will be more and more competitors in the future, but at the same time, this asset is becoming more mainstream. Robinhood sees growth opportunities in cryptocurrency products, including more coins and bets once regulations become clearer. The company believes its comprehensive trading platform for stocks, options, futures (new products), and cryptocurrency contracts is a competitive advantage. Despite potential competition, the company also expects demand for cryptocurrencies to increase. Q: Growth trends for Legend, index options, and futures A: Legend's annual revenue has reached $50 million, index options have reached $15 million, and the futures business has just started. These products show strong weekly growth rates and positive customer feedback, indicating potential for continued accelerated growth. Q: Opportunities in the advisory custody market A: The company sees the advisory business as a "missed opportunity" and will be very aggressive in this market in the future. The acquisition of TradePMR is a way to expand Robinhood's customer base, especially targeting senior clients approaching retirement with substantial assets, Robinhood hopes to attract existing clients and their parents through digital experiences and artificial consultancy services. Most of the advisors at TradePMR, including the platform's clients, are entrepreneurs. They believe it is valuable to have the opportunity to reach Robinhood's 25 million customers, especially when these millions of users inherit the substantial wealth of their elders, their wealth will increase significantly. Robinhood also believes that this will be an important part of the next generation of wallet-sharing platforms and will truly become the first platform for multiple generations. Q: Impact of interest rates on trading volume A: The company expects trading volume to increase if interest rates fall. I estimate there will be one or two rate cuts later this year. Historically, lower interest rates drive higher trading activity. However, the company's business is diversified, so it should be able to thrive regardless of the macroeconomic background of interest rates. Q: Deposit incentives for 2025 A: The company will continue to offer deposit incentives, especially personalized annual interest rate increase rewards for retirement accounts and gold plans. These incentives have successfully driven net deposits.Gold and customer growth, by 2024 the net deposits reached 50 billion US dollars, and the company has more opportunities for business growth.Q: Is the revenue of $50 million from Legend completely new? A: The company is confident in its growth, but the data is still in the early stages, and there is an incremental effect, but more data is needed for further observation; both new and existing customers have a high acceptance of Legend. With further development of product suites and user experience, the company expects to achieve sustained growth. Q: Penetration rate of new Gold members A: A large portion of new Gold members are new users of Robinhood. In the fourth quarter of new net deposit accounts, over 30% became Gold member users. The membership system is generating strong second-order effects, and Gold subscription users will also increase assets under custody (AUC) and amounts. The company plans to increase cardholders from over 100,000 to hundreds of thousands this year, including new and existing users. Q: International expansion roadmap A: Future international expansion will follow a similar roadmap to the one launched in the UK, starting with stocks and adding products on top of that. Robinhood plans to continue adding new products and features in the UK, such as ISAs and futures, and expand into other markets. Our goal is to allow customers to use Robinhood anywhere they have a smartphone. The product sequence in the EU market will depend on the market, there is no fixed rule. Robinhood will continue to improve the product suite in existing markets and expand upon it. Robinhood will host its first cryptocurrency event in France around mid-year. Q: Stablecoin product launch and monetization A: Robinhood is actively involved in the Global Dollar Network, collaborating to launch USDG, a stablecoin that can return earnings to holders. The company sees it as the future of stablecoins, as many leading stablecoins lack a good way to pass earnings on to holders. Robinhood also uses stablecoins for internal settlements, leveraging its 24-hour instant settlement advantage. The company plans to continue investing in this Global Dollar Network and expects more development in the future. Q: Priority ranking and resource allocation for opportunities such as cryptocurrency, active traders, international opportunities, prediction markets, etc. A: Robinhood ranks opportunities based on potential scale and immediacy. The three main arcs of the company's business are: the largest active trader platform (recent), expanding wallet share (medium-term: capturing the largest share of the younger generation's wallet share platform, where users can buy and sell any type of financial asset), and international expansion (long-term). The company allocates resources based on the potential revenue and business value of these opportunities. The active trader plans, such as Robinhood Legend and Index Options, have shown instant revenue-generating capability, while long-term opportunities such as international expansion and prediction markets are also being pursued simultaneously. The company believes that by leveraging artificial intelligence technology to improve efficiency, control operating expenditure (OpEx) growth, it can continue to increase product speed and launch more features. Q: Do you need more resources? A: Robinhood is not constrained by resource limitations in its business development. Thanks to its efficient business model and the application of artificial intelligence technology, the company expects to achieve significant growth in 2024 without significantly increasing operating expenses. The company will continue to deploy staff when necessary to support its development plans.