who-owns-robinhood

Who Owns Robinhood?

The company is primarily owned by its co-founders, Baiju Bhatt and Vladimir Tenev, who own most Class B shares, conferring a combined voting power of over 60%. Other institutional investors comprise Index Ventures, with 9.9% of Class A shares, followed by DST Global, with 7.5% of Class A shares; followed by Fidelity Technologies, with 7.1%; Ribbit Capital, with 7.1%; and The Vanguard Group, with 6.9%.

DetailDescription
CompanyRobinhood Markets, Inc.
Ownership StructurePublicly traded company with major shareholders
Major ShareholdersInstitutional investors like ARK Investment Management, Vanguard Group, BlackRock, other institutional investors, and individual shareholders
Founding DateApril 2013
FoundersVladimir Tenev and Baiju Bhatt
HeadquartersMenlo Park, California, USA
Primary BusinessProviding a commission-free trading platform for stocks, ETFs, options, and cryptocurrencies
Strategic GoalsExpanding financial services offerings, enhancing platform security and user experience, growing international presence, and democratizing finance

Additional Ownership Details

  • Corporate Structure and Ownership: Robinhood Markets, Inc. is publicly traded on the NASDAQ under the ticker symbol HOOD. The company went public in July 2021 through an initial public offering (IPO). Major institutional investors, such as ARK Investment Management, Vanguard Group, and BlackRock, hold significant stakes in Robinhood, providing financial backing and strategic input.
  • Corporate Strategy and Business Model: Robinhood’s business model revolves around offering commission-free trading, making investing accessible to a broader audience. The company generates revenue through payment for order flow, premium subscriptions (Robinhood Gold), and other financial services. Robinhood aims to democratize finance by providing tools that empower users to manage their investments easily.
  • Product Innovation and User Engagement: Robinhood invests in product innovation by introducing features like fractional shares, cash management accounts, and cryptocurrency trading. The platform focuses on enhancing user experience through a user-friendly interface, educational content, and real-time market data, making investing more accessible to novice investors.
  • Market Expansion and Growth: Robinhood is actively working to expand its market presence by exploring international opportunities and broadening its range of financial products. The company aims to attract a global user base by offering localized services and adhering to regulatory standards in new markets.
  • Community and User-Centric Approach: Robinhood places a strong emphasis on user education and financial literacy, offering resources to help users make informed investment decisions. The platform also prioritizes community engagement through social media and direct interaction with users, fostering a sense of empowerment and transparency.

Robinhood In Numbers

Robinhood Revenue

Robinhood Revenue
Robinhood generated $1.86 billion in 2023, compared to $1.36 billion in 2022 and $1.81 billion in 2021.

Robinhood Revenue Breakdown

Robinhood-Revenue-Breakdown
Robinhood-Revenue-Breakdown-2021-2023

Robinhood Transactions Revenue

Robinhood Transactions Revenue
2023 Robinhood generated $785 million in transaction revenue, compared to $814 million in 2022 and $1.4 billion in 2021. In 2023, most of the total transaction revenue came from options trading, which generated over $500 million in transaction revenue for the company.

Is Robinhood Profitable?

Robinhood Net Losses
Robinhood is not profitable, as it reported a net loss of $541 million in 2023, compared to over a billion dollars in net losses in 2022 and nearly $3.7 billion in net losses in 2021.

Robinhood Funded Customers

Robinhood Funded Customers
Robinhood is defined as a Funded Customer, a unique person who has at least one account with a Robinhood within the past 45 calendar days with some net balance on it. For instance, in 2023, the company reported 23.4 million funded customers compared to 23 million in 2022 and 22.7 million in 2021.

Robinhood Net Deposits

Robinhood Net Deposits
Robinhood reported $17.1 billion in net deposits in 2023, compared to $18.4 billion in 2022 and $27.1 billion in 2021.

Robinhood ARPU

Robinhood ARPU
Robinhood reported an average revenue per user of $80 in 2023, compared to $60 in 2022 and $103 in 2021.

Robinhood Monthly Active Users

Robinhood Monthly Active Users
Robinhood reported 10.9 million Monthly Active Users in 2023, compared to 11.4 million in 2022 and 17.3 million in 2021.

Robinhood Employees

Robinhood Employees
Robinhood had 2,200 employees in 2023, compared to 2,300 employees in 2022 and 3,800 employees in 2021.

Robinhood Revenue per Employee

Robinhood Revenue per Employee
Robinhood generated $847,727 per employee in 2023, compared to $590,435 in 2022 and $477,632 in 2021.
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