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Robinhood Reports Quaternary Quarter and Full Twelvemonth 2021 Results

01/27/2022

MENLO PARK, Calif., January. 27, 2022 (Globe NEWSWIRE) -- Robinhood Markets, Inc. ("Robinhood") (NASDAQ: HOOD) today announced financial results for the fourth quarter and total year ended December 31, 2021.

  • Total internet revenues for the quarter increased 14% to $363 million, compared with $318 1000000 in the fourth quarter of 2020, and for the year increased 89% to $1.82 billion, compared with $959 million for the year ended December 31, 2020.
  • Transaction-based revenues for the quarter increased 12% to $264 one thousand thousand, compared with $235 meg in the 4th quarter of 2020, and for the year increased 95% to $1.xl billion, compared with $720 one thousand thousand for the year ended December 31, 2020.
    • Options for the quarter increased 14% to $163 1000000, compared with $142 million in the quaternary quarter of 2020, and for the twelvemonth increased 57% to $689 million, compared with $440 meg for the year ended Dec 31, 2020.
    • Cryptocurrencies for the quarter increased 304% to $48 million, compared to $12 million in the fourth quarter of 2020, and for the yr increased to $419 1000000, compared with $27 million for the year ended December 31, 2020.
    • Equities for the quarter decreased 35% to $52 million, compared with $80 million in the fourth quarter of 2020, and for the yr increased xv% to $288 million, compared with $251 million for the year ended December 31, 2020.
  • Loss before income tax for the quarter was $420 1000000, compared with income before income revenue enhancement of $19 million in the quaternary quarter of 2020, and for the year loss earlier income tax was $3.68 billion, compared with income before income tax of $14 million for the twelvemonth ended December 31, 2020.
    • Share-based compensation expense totaled $318 million for the quaternary quarter of 2021 and $1.57 billion for the twelvemonth ended December 31, 2021. For the year ended December 31, 2020, share-based compensation expense totaled $24 one thousand thousand, all related to stock options (no expense relating to restricted stock units was recognized because our initial public offering ("IPO") had not however occurred).
    • The loss before income taxation for the yr ended December 31, 2021 too included total expense of $ii.05 billion associated with the change in fair value of convertible notes and warrant liability issued in February 2021.
  • Cyberspace loss for the quarter was $423 million, or $0.49 per diluted share, compared with net income of $13 million, or $0.02 per diluted share in the fourth quarter of 2020, and for the twelvemonth internet loss was $3.69 billion, or $7.49 per diluted share, compared with net income of $7 one thousand thousand, or $0.01 per diluted share, for the year ended December 31, 2020.
  • Adapted EBITDA (not-GAAP) for the quarter was negative $87 million, compared with positive $79 1000000 in the fourth quarter of 2020, and for the year was positive $34 million, compared with positive $155 million for the year ended December 31, 2020.
  • Cyberspace Cumulative Funded Accounts increased 81% to 22.7 million as of December 31, 2021, compared with 12.5 meg as of December 31, 2020. On a sequential footing, Cyberspace Cumulative Funded Accounts increased i% compared with 22.4 million as of September thirty, 2021.
  • Monthly Active Users (MAU) increased 48% to 17.three million for Dec 2021, compared with xi.7 million for December 2020. On a sequential basis, MAU decreased viii% compared with 18.ix meg for September 2021.
  • Assets Under Custody (AUC) increased 56% to $98 billion every bit of December 31, 2021, compared with $63 billion as of December 31, 2020. On a sequential footing, AUC increased three% compared with $95 billion as of September 30, 2021.
  • Boilerplate Revenues Per User (ARPU) for the quarter decreased 39% to $64 on an annualized basis, compared with $106 in the 4th quarter of 2020. The decrease was primarily related to lower trading volumes per user for options and equities and lower interest earnings per user from securities lending due to declines in market place rates earned on loaned securities, partially offset by higher trading volumes per user for cryptocurrencies. ARPU for the yr decreased 5% to $103, compared with $109 for the year ended December 31, 2020. On a sequential footing, ARPU remained consistent compared with the quarter ended September xxx, 2021.
  • Cash and cash equivalents at December 31, 2021 totaled $vi.3 billion, compared with $i.4 billion at December 31, 2020.

"We had a momentous yr, nearly doubling the number of customers on the platform and making disquisitional investments in our team and infrastructure to back up growth," said Vlad Tenev, CEO and Co-Founder of Robinhood Markets. "This yr, we'll expand our ecosystem of products that make Robinhood the all-time place to start investing and build wealth for the long term."

Highlights

Robinhood's 2021 investments put the visitor on potent footing for 2022

  • In 2021 Robinhood added over 10 million net funded accounts, nearly doubling the customers on the platform. In the same fourth dimension, the company has more than doubled its team, calculation talent to important areas like applied science, product, customer service, and compliance.
  • Robinhood also made strong executive additions over the by year and is excited to take virtually recently welcomed Steve Quirk as Chief Brokerage Officer and a fellow member of the senior leadership squad.
  • The company has invested heavily in the service and reliability of its platform to run into the demands created past tremendous user growth and successfully added 24/7 alive telephone back up for all logged-in users, giving customers the ability to get telephone support at any time and on any topic.
  • Robinhood has continued to meliorate the product feel, adding contextual in-app education, rolling out Crypto Gifts and recurring investments, opening up access to IPOs, and giving customers a voice with the companies they invest in through the acquisition of Say Technologies and the integration of its Q&A platform into the Robinhood app.

Robinhood delivers on product development in Q4 2021

  • Robinhood introduced get-go trade recommendations to all new customers who have however to place a trade, helping users go started with a diversified ETF portfolio based on their risk profile and investment objectives.
  • Robinhood launched Automated Customer Account Transfer Service ("ACATS") In a few weeks ago to a small set of customers and has been gradually expanding its availability, with early results looking promising. This feature allows customers to transfer assets from other brokerages into Robinhood and the company will continue to better the feel and aggrandize the availability to all customers in Q1 2022.
  • Robinhood continued to improve its options feel for customers, introducing Options Alerts, Options Watchlist and making information technology simpler to roll selection contracts.
  • Robinhood made considerable progress on its fully-paid securities lending program, continues to talk over with its regulators, and believes it will be able to launch the plan during the outset half of the yr.
  • Robinhood is close to delivering an even larger window of bachelor trading hours and expects to scroll this out later in Q1 2022. This volition exist ane of several improvements the company plans to brand to the trading experience this year.
  • Robinhood successfully completed blastoff testing on Crypto Wallets and has launched a public beta, which will continue to provide valuable insights as the visitor prepares for a total launch of wallets in Q1 2022.
  • During the holiday flavor, Robinhood launched Crypto Gifts, which enables customers to ship crypto to family unit and friends. The company will take learnings from this launch and wait to apply them to transfer capabilities beyond crypto.

Robinhood charts ambitious plan for 2022

  • Robinhood's programme is focused on 3 cadre areas: beingness the best place to get started investing, helping first time investors grow into long-term investors, and continuing to serve avant-garde investors with the power and simplicity they demand.
  • Robinhood will build products intended to assist with long-term investing, aiming to brand it easier for customers to build for their futures no matter where they are in their financial journeys. Teams are already hard at piece of work developing taxation-advantaged retirement accounts, which will brainstorm rolling out to customers mid-year.
  • Robinhood will invest in spending and savings products and, in the coming months, will introduce a new experience for day-to-day spending to help customers build a portfolio as an upshot of spending.
  • Robinhood plans to offer customers ways to move their money faster, starting with introducing instant debit card deposits and withdrawals in the next few months.
  • Robinhood has fix aggressive goals to start opening its crypto platform up to customers internationally in 2022. The company believes in the immense potential of the crypto economy and sees a large opportunity in serving customers across the globe.

Financial Outlook

For the first quarter of 2022, Robinhood anticipates that total net revenues will be less than $340 one thousand thousand, which assumes some incremental comeback in trading volumes versus what nosotros have seen and so far. At the height end, this implies a year-over-twelvemonth revenue refuse of 35% compared to the first quarter of 2021, during which we saw outsized revenue performance due to heightened trading activity, especially relating to certain meme-stocks.

Bodily results for full internet revenues might differ materially from our outlook. Full net revenues are highly sensitive to the number and timing of new funded accounts, the number of trades made by our customers, the notional amount of trading volume per customer, and market environment or other exogenous events, all of which are afflicted past general market conditions, consumer sentiment, and other factors.

For financial twelvemonth 2022, Robinhood expects total operating expenses, excluding share-based compensation, to increase 15-20% year-over-year. Additionally, we expect share-based compensation to decline 35-40% year-over-year.

Bodily results for total operating expenses, excluding share-based compensation, might differ materially from our outlook due to several factors, including the rate of growth in internet new funded accounts which affects several costs including variable marketing costs, the degree to which we are successful in preventing fraud, our ability to manage web-hosting expenses efficiently, and our ability to achieve productivity improvements in customer service, among other factors.

Webcast and Conference Call Information

Robinhood will host a briefing telephone call to discuss its results and fiscal outlook at 2 p.one thousand. PT / 5 p.chiliad. ET today, January 27, 2022. The alive webcast of Robinhood's earnings conference call tin can be accessed at investors.robinhood.com, forth with the earnings printing release and accompanying slide presentation.

Post-obit the phone call, a replay and transcript will likewise exist available at the same website.

About Robinhood

Robinhood Markets is on a mission to democratize finance for all. With Robinhood, people can invest with no account minimums through Robinhood Financial, LLC, purchase and sell crypto through Robinhood Crypto, LLC, and learn about investing through like shooting fish in a barrel-to-empathize educational content.

Robinhood intends to employ its blog, Under the Hood, equally a ways of disclosing textile information to the public in a broad, non-exclusionary way for purposes of the SEC's Regulation Fair Disclosure (Reg. FD). Under the Hood can exist accessed at blog.robinhood.com and investors should routinely monitor that website, in improver to Robinhood's printing releases, SEC filings, and public briefing calls and webcasts, as information posted on Robinhood's blog could be deemed to be material data.

"Robinhood" and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Contacts

Investors:
Irvin Sha
[e-mail protected]

Press:
[email protected]

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the expected fiscal performance of Robinhood Markets, Inc. and its consolidated subsidiaries ("nosotros," "Robinhood," or the "Company") and our strategic and operational plans, including our expectations for Crypto Wallets, ACATS In, a fully-paid securities lending program, and extended trading hours, our statements nether the heading "Robinhood charts ambitious programme for 2022," and our statements nether the heading "Financial Outlook," among others. Our forwards-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our bodily future results, operation, or achievements to differ materially from whatever hereafter results expressed or unsaid in this press release. Reported results should not be considered an indication of time to come performance. Factors that contribute to the uncertain nature of our forrad-looking statements include, among others: our limited operating history; the difficulty of managing rapid growth and the risk of declining or negative growth; the fluctuations in our financial results and key metrics from quarter to quarter; our reliance on transaction-based revenue, including payment for guild menstruation ("PFOF"), and the risk of new regulation or bans on PFOF and similar practices; the difficulty of raising additional capital (to satisfy any liquidity needs and back up business growth and objectives) on reasonable terms or at all; the need to maintain upper-case letter levels required past regulators and self-regulatory organizations; the chance that we might mishandle the cash, securities, and cryptocurrencies nosotros hold on behalf of customers, and our exposure to liability for operational errors in immigration functions; the impact of negative publicity on our make and reputation; the risk that changes in business, economic, or political atmospheric condition, or systemic market events, might harm our business; our dependence on key employees and a skilled workforce; the difficulty of complying with an extensive and complex regulatory environment and the need to suit our business model in response to new or modified laws and regulations; the possibility of agin developments in awaiting litigation and regulatory investigations; the effects of contest; our need to innovate and invest in new products and services in lodge to attract and retain customers and deepen their date with us in order to maintain growth; our reliance on third parties to perform sure key functions and the gamble that operational or technological failures could impair the availability or stability of our platform; the risk of cybersecurity incidents, theft, data breaches, and other online attacks; the difficulty of processing customer data in compliance with privacy laws; our need as a regulated financial services company to develop and maintain effective compliance and risk direction infrastructures; the volatility of cryptocurrency prices and trading volumes; and the chance that substantial future sales of Class A common shares in the public market place could cause the price of our stock to fall. Because some of these risks and uncertainties cannot exist predicted or quantified and some are across our command, you should non rely on our frontwards-looking statements equally predictions of future events. More than data about potential risks and uncertainties that could affect our business organisation and financial results is included in Part Ii, Item 1A of our Quarterly Study on Course 10-Q for the quarter ended September 30, 2021 besides every bit our other filings with the Securities and Commutation Commission ("SEC"), which are available on the SEC's spider web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly irresolute environs; new risks and uncertainties may emerge from time to time, and it is non possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and bodily results could differ materially from those projected in the frontwards-looking statements. Except as otherwise noted, all forwards-looking statements are made as of the date of this press release, January 27, 2022, and are based on data and estimates bachelor to u.s. at this fourth dimension. Although nosotros believe that the expectations reflected in our forward-looking statements are reasonable, nosotros cannot guarantee future results, performance, or achievements. Except as required past law, Robinhood assumes no obligation to update any of the statements in this press release whether as a issue of any new information, futurity events, changed circumstances, or otherwise. Yous should read this printing release with the understanding that our actual future results, performance, events, and circumstances might exist materially different from what we wait. All 4th quarter and total year 2021 fiscal information in this press release is preliminary, based on our estimates and subject to completion of our fiscal endmost procedures. Final results for the full year, which will exist reported in our Annual Written report on Class 10-Grand for the year ended December 31, 2021, might vary from the information in this printing release. In item, until our financial statements are issued in our Annual Report on Form 10-K, we might be required to recognize certain subsequent events (such equally in connectedness with contingencies or the realization of avails) which could affect our final results.

Non-GAAP Fiscal Measures

Nosotros collect and analyze operating and financial data to evaluate the health of our business, allocate our resource and assess our operation. In addition to total net revenues, net income (loss) and other results under GAAP, nosotros utilize non-GAAP calculations of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") and operating expense excluding share-based compensation. This not-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for or superior to fiscal data presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used past other companies. Reconciliations of these non-GAAP measures to the most directly comparable fiscal measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

Adjusted EBITDA

Adjusted EBITDA is defined as net income (loss), excluding (i) interest expenses related to credit facilities, (ii) provision for (benefit from) income taxes, (three) depreciation and amortization, (iv) share-based compensation, (v) modify in fair value of convertible notes and warrant liability, (six) pregnant legal and tax settlements and reserves, and (seven) other pregnant gains, losses, and expenses (such equally impairments, restructuring charges, and business conquering- or disposition-related expenses) that we believe are not indicative of our ongoing results.

The above items are excluded from our Adapted EBITDA mensurate considering these items are not-cash in nature, or because the amount and timing of these items is unpredictable, is not driven past core results of operations and renders comparisons with prior periods and competitors less meaningful. Nosotros believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well every bit providing a useful measure for period-to-period comparisons of our business organization performance. Moreover, Adapted EBITDA is a primal measurement used by our management internally to brand operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Operating Expense excluding Share-Based Compensation

Operating expense excluding share-based compensation is defined equally the applicable GAAP operating expense line detail minus the share-based compensation (or SBC) included inside such line particular. We believe operating expense excluding SBC provides useful information to investors and others in understanding and evaluating our results of operations, likewise equally providing a useful mensurate for period-to-period comparisons of our cost construction.

Cardinal Performance Metrics

In add-on to the measures presented in our unaudited condensed consolidated financial statements, we apply the cardinal performance metrics described below to help us evaluate our business organization, identify trends affecting our business, formulate business organization plans, and make strategic decisions.

Net Cumulative Funded Accounts

A Robinhood business relationship is designed to provide a user with access to any and all of the products offered on our platform. We define "Net Cumulative Funded Accounts" equally New Funded Accounts less Churned Accounts plus Resurrected Accounts (each every bit defined below). A "New Funded Account" is a Robinhood account into which the account user makes an initial eolith or money or asset transfer, of any corporeality, during the relevant period. An account is considered "Churned" if it was ever a New Funded Business relationship and its residuum (measured equally the off-white value of avails in the account less any amount due from the user and excluding certain Company-initiated credits) drops to or beneath zero for at to the lowest degree 45 sequent calendar days. Negative balances typically result from Fraudulent Deposit Transactions (as divers below) and, less oftentimes, from margin loans. An business relationship is considered "Resurrected" in a stated flow if it was a Churned Account every bit of the terminate of the immediately preceding period and its balance (excluding certain Company-initiated credits) rises above zero. Examples of credits excluded for purposes of identifying Churned Accounts and Resurrected Accounts are toll correction credits, related interest adjustments, and fee adjustments.

"Fraudulent Deposit Transactions" occur when users initiate deposits into their accounts, make trades on our platform using a brusque-term extension of credit from us, and then repatriate or contrary the deposits, resulting in a loss to us of the credited amount.

Monthly Active Users ("MAU")

We define MAU as the number of Monthly Active Users during a specified agenda month. A "Monthly Agile User" is a unique user who makes a debit card transaction, or who transitions between two different screens on a mobile device or loads a folio in a spider web browser while logged into their business relationship, at whatever point during the relevant month. A user need non satisfy these conditions on a recurring monthly basis or have a Funded Account to be included in MAU. Figures in this release reflect MAU for the concluding month of each period presented. We use MAU to mensurate how many customers interact with our products and services during a given month. MAU does not mensurate the frequency or duration of the interaction, but we consider it a useful indicator for date. Additionally, MAUs are positively correlated with, but are not indicative of the performance of revenue and other cardinal performance indicators.

Avails Under Custody ("AUC")

We define AUC as the sum of the off-white value of all equities, options, cryptocurrency and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. Cyberspace Deposits and net market gains bulldoze the change in AUC in any given period. We define "Internet Deposits" as all cash deposits and asset transfers received from customers net of reversals, customer cash withdrawals, and other equity and greenbacks amounts transferred out of our platform (including in connection with debit card transactions and account transfers in or out of our platform through the ACATS) for a stated period.

Average Acquirement Per User ("ARPU")

We define ARPU every bit total revenue for a given period divided past the average of Net Cumulative Funded Accounts on the last twenty-four hours of that catamenia and the last day of the immediately preceding period. Figures in this release correspond ARPU for the twelvemonth or annualized for each three-month menses presented, as applicable.

ROBINHOOD MARKETS, INC.
CONSOLIDATED Residual SHEETS
(Unaudited)

Year Ended
Dec 31,
(in thousands, except share and per share information) 2020 2021
Assets
Electric current assets:
Cash and cash equivalents $ 1,402,629 $ half dozen,253,477
Cash and securities segregated under federal and other regulations iv,914,660 3,992,419
Receivables from brokers, dealers and immigration organizations 124,501 88,326
Receivables from users, net iii,354,142 vi,638,900
Deposits with clearing organizations 225,514 327,917
User-held fractional shares 802,483 1,834,479
Investments 27,189
Other current avails 48,655 120,835
Full current assets 10,872,584 nineteen,283,542
Property, software and equipment, net 45,834 146,419
Goodwill 100,521
Intangible assets, net 185 34,107
Restricted cash 7,364 23,773
Other non-current assets 62,507 180,817
Total assets $ 10,988,474 $ 19,769,179
Liabilities, mezzanine equity and stockholders' (deficit) equity
Current liabilities:
Accounts payable and accrued expenses $ 104,649 $ 252,313
Payables to users v,897,242 6,475,728
Securities loaned 1,921,118 3,651,035
Partial shares repurchase obligation 802,483 one,834,479
Other current liabilities 90,553 133,787
Total current liabilities 8,816,045 12,347,342
Other not-current liabilities 48,012 128,745
Total liabilities 8,864,057 12,476,087
Commitments and contingencies
Mezzanine equity
Redeemable convertible preferred stock, $0.0001 par value. 414,033,220 shares authorized, 412,742,897 shares issued and outstanding with a liquidation preference of $2,191,086 as of December 31, 2020. No shares authorized, issued, and outstanding as of December 31, 2021. 2,179,739
Stockholders' (deficit) disinterestedness:
Preferred stock, $0.0001 par value. No shares authorized, issued and outstanding as of December 31, 2020; 210,000,000 shares authorized and no shares issued and outstanding equally of December 31, 2021.
Common stock, $0.0001 par value. 777,354,000 shares authorized, 229,031,546 shares issued and outstanding equally of December 31, 2020; no shares authorized, issued and outstanding every bit of December 31, 2021. ane
Class A common stock, $0.0001 par value. No shares authorized, issued and outstanding as of December 31, 2020; 21,000,000,000 shares authorized, 735,957,367 shares issued and outstanding equally of December 31, 2021. 73
Course B mutual stock, par value $0.0001. No shares authorized, issued and outstanding as of December 31, 2020; 700,000,000 shares authorized, 127,955,246 shares issued and outstanding as of December 31, 2021. 13
Class C mutual stock, par value $0.0001. No shares authorized, issued and outstanding equally of December 31, 2020; vii,000,000,000 shares authorized, no shares issued and outstanding every bit of December 31, 2021.
Additional paid-in uppercase 134,307 11,169,136
Accumulated other comprehensive income 473 405
Accumulated deficit (190,103 ) (three,876,535 )
Total stockholders' (deficit) equity (55,322 ) 7,293,092
Total liabilities, mezzanine equity and stockholders' (deficit) equity $ 10,988,474 $ xix,769,179

ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

(in thousands, except share and per share data) Three Months Ended
December 31,
% Change Year Ended
Dec 31,
% Change
2020 2021 2020 2021
Revenues:
Transaction-based revenues $ 235,282 $ 263,947 12 % $ 720,133 $ 1,402,350 95 %
Cyberspace involvement revenues 63,017 63,351 1 % 177,437 256,962 45 %
Other revenues xix,243 35,415 84 % 61,263 155,831 154 %
Full net revenues 317,542 362,713 14 % 958,833 1,815,143 89 %
Operating expenses(ane)(two):
Brokerage and transaction thirty,623 29,496 (4)% 111,083 152,343 37 %
Engineering and development 81,963 280,420 242 % 215,630 1,232,787 472 %
Operations 44,666 97,163 118 % 137,905 373,129 171 %
Marketing 33,221 44,069 33 % 185,741 327,369 76 %
General and administrative 107,913 332,000 208 % 294,694 1,370,520 365 %
Total operating expenses 298,386 783,148 162 % 945,053 3,456,148 266 %
Change in fair value of convertible notes and warrant liability two,045,657 NM
Other income, cyberspace (138 ) (126 ) (9)% (50 ) (2,230 ) NM
Income (loss) before income tax 19,294 (420,309 ) NM 13,830 (three,684,432 ) NM
Provision for income taxes six,266 2,958 (53)% vi,381 ii,000 (69)%
Net income (loss) $ thirteen,028 $ (423,267 ) NM $ 7,449 $ (iii,686,432 ) NM
Net income (loss) owing to common stockholders:
Bones $ 4,624 $ (423,267 ) $ ii,848 $ (3,686,432 )
Diluted $ iv,624 $ (423,267 ) $ 2,848 $ (iii,686,432 )
Internet income (loss) per share owing to common stockholders:
Basic $ 0.02 $ (0.49 ) $ 0.01 $ (7.49 )
Diluted $ 0.02 $ (0.49 ) $ 0.01 $ (7.49 )
Weighted-boilerplate shares used to compute net income (loss) per share owing to common stockholders:
Basic 227,115,364 859,932,743 225,748,355 492,381,190
Diluted 245,008,423 859,932,743 244,997,388 492,381,190
________________
(i) The following tabular array presents operating expenses as a percent of full net revenues:
Three Months Ended
Dec 31,
Twelvemonth Ended
December 31,
2020 2021 2020 2021
Brokerage and transaction 10 % eight % 12 % viii %
Technology and development 26 % 77 % 22 % 68 %
Operations 14 % 27 % xiv % 21 %
Marketing ten % 12 % xix % xviii %
General and administrative 34 % 92 % 31 % 76 %
Total operating expenses 94 % 216 % 98 % 191 %
________________
(2) The post-obit table presents the share-based bounty in our unaudited condensed consolidated statements of operations for the periods indicated:
Three Months Ended
December 31,
Year Ended
Dec 31,
(in thousands) 2020 2021 2020 2021
Brokerage and transaction $ 209 $ 1,110 $ 227 $ 7,527
Technology and development xiv,492 104,534 18,024 609,307
Operations 38 3,845 61 20,261
Marketing 558 8,687 613 49,731
General and administrative 3,685 199,629 5,405 885,427
Total share-based compensation expense $ 18,982 $ 317,805 $ 24,330 $ ane,572,253

The 2020 amounts exclude the effect of share-based bounty for awards with performance-based atmospheric condition considering the qualifying event, such as our IPO, had not occurred and, therefore, could non be considered probable. Upon our IPO in the 3rd quarter of 2021, we recognized $1.01 billion of share-based compensation.

ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF Cash FLOWS
(Unaudited)

Three Months Ended
December 31,
Yr Concluded
December 31,
(in thousands) 2020 2021 2020 2021
Operating activities:
Internet income (loss) $ 13,028 $ (423,267 ) $ 7,449 $ (iii,686,432 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 3,366 9,761 9,938 25,495
Provision for credit losses 14,795 17,532 59,134 79,328
Share-based compensation 18,982 317,802 24,330 1,570,386
Alter in fair value of convertible notes and warrant liability 2,045,657
Other (204 ) 12 2,139 (109 )
Changes in operating avails and liabilities:
Segregated securities under federal and other regulations (129,995 ) fifty,000 (134,994 ) 134,994
Receivables from brokers, dealers and clearing organizations (41,078 ) 36,636 (103,787 ) 36,175
Receivables from users, net (i,109,169 ) (557,831 ) (2,771,967 ) (iii,362,863 )
Deposits with clearing organizations eighteen,778 (11,696 ) (103,037 ) (102,403 )
Other electric current and not-current assets (21,805 ) 39,730 (46,055 ) (189,004 )
Accounts payable and accrued expenses (42,281 ) 15,630 67,117 134,090
Payables to users 802,448 (335,441 ) 3,532,091 578,486
Securities loaned 759,185 521,385 1,247,089 one,729,917
Other current and non-current liabilities threescore,656 44,115 86,807 121,510
Net greenbacks provided by (used in) operating activities 346,706 (275,632 ) 1,876,254 (884,773 )
Investing activities:
Buy of holding, software and equipment (vi,861 ) (17,075 ) (24,443 ) (63,182 )
Capitalization of internally developed software (2,179 ) (7,852 ) (seven,887 ) (20,471 )
Acquisitions of a concern, cyberspace of cash acquired (half-dozen,265 ) (125,426 )
Buy of marketable debt securities (27,203 ) (27,203 )
Other (x ) (1,598 )
Cyberspace cash used in investing activities (9,040 ) (58,405 ) (32,330 ) (237,880 )
Financing activities:
Gain from issuance of common stock in connection with initial public offering, net of offering costs (five,148 ) ii,052,382
Gain from issuance of common stock under the Employee Stock Purchase Plan seven,344 vii,344
Taxes paid related to cyberspace share settlement of equity awards (10,304 ) (422,076 )
Gain from issuance of convertible notes and warrants iii,551,975
Draws on credit facilities 10,000 937,700 1,968,276
Repayments on credit facilities (10,000 ) (937,700 ) (ane,968,276 )
Proceeds from issuance of redeemable convertible preferred stock, cyberspace of issuance costs (22 ) 1,267,328
Proceeds from exercise of stock options, net of repurchases 4,968 2,016 8,555 13,796
Net cash provided by (used in) financing activities 4,946 (6,092 ) 1,275,883 five,203,421
Consequence of foreign exchange rate changes on cash and greenbacks equivalents 264 22 284 (68 )
Net increase in cash, cash equivalents, segregated cash and restricted cash 342,876 (340,107 ) 3,120,091 4,080,700
Cash, cash equivalents, segregated cash and restricted cash, outset of the period 5,846,783 10,610,466 3,069,568 6,189,659
Cash, greenbacks equivalents, segregated cash and restricted cash, end of the menses $ 6,189,659 $ 10,270,359 $ six,189,659 $ 10,270,359
Greenbacks and cash equivalents, end of the period $ i,402,629 $ half dozen,253,477 $ ane,402,629 $ 6,253,477
Segregated cash, end of the flow 4,779,666 3,992,419 4,779,666 3,992,419
Restricted cash, end of the menses 7,364 24,463 7,364 24,463
Cash, cash equivalents, segregated cash and restricted greenbacks, end of the period $ 6,189,659 $ 10,270,359 $ six,189,659 $ 10,270,359
Supplemental disclosures:
Greenbacks paid for interest $ 509 $ 5,719 $ 3,207 $ 11,902
Greenbacks paid for income taxes, internet of refund received $ 2,850 $ 2,952 $ 5,689 $ 6,111

Reconciliation of GAAP to Non-GAAP Results
(Unaudited)

Three Months Ended
December 31,
Year Ended
Dec 31,
(in thousands) 2020 2021 2020 2021
Net income (loss) $ 13,028 $ (423,267 ) $ seven,449 $ (iii,686,432 )
Add:
Interest expenses related to credit facilities 948 5,899 4,882 xx,218
Provision for income taxes 6,266 2,958 half-dozen,381 two,000
Depreciation and amortization iii,366 9,761 nine,938 25,495
EBITDA (not-GAAP) 23,608 (404,649 ) 28,650 (3,638,719 )
Share-based compensation 18,982 317,805 24,330 1,572,253
Alter in off-white value of convertible notes and warrant liability ii,045,657
Significant legal and tax settlements and reserves 36,600 101,600 54,910
Adjusted EBITDA (not-GAAP) $ 79,190 $ (86,844 ) $ 154,580 $ 34,101

Reconciliation of GAAP to Non-GAAP Fiscal Outlook
(Unaudited)

Year Ended
December 31, 2021
Financial Outlook for the Year Ending
Dec 31, 2022
(in thousands) (year- over-year modify)
Full operating expenses (GAAP) $ 3,456,148 decrease by v-x%
Less: SBC 1,572,253 decrease by 35-40%
Total operating expenses excluding SBC (non-GAAP) $ 1,883,895 increment by 15-twenty%


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Source: Robinhood Markets, Inc.

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Source: https://investors.robinhood.com/news/news-details/2022/Robinhood-Reports-Fourth-Quarter-and-Full-Year-2021-Results/default.aspx

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