Brian Bedell: All right. Great. Thanks. Good evening. Maybe just staying on the crypto theme, maybe Vlad and Jason, if you can talk about just the nature of the surge in crypto volumes in March? And I think you said April was at $10 billion. I appreciate, of course, this is very volatile class, but maybe if you can just talk about what you’re seeing that drove that heavy activity in March, and whether you think we could see spikes like that again? And then just the mix of crypto volumes between the EU and U.S. is — maybe the EU is still very small, but just trying to get a sense of that.
Vlad Tenev: Yeah. I mean in terms of what drives crypto volumes, I think modulo our market share gains, our crypto activity does track the broader market. And I don’t really want to get into prognosticating what the crypto market is going to do. That’s obviously a difficult thing for anyone to do. It’s a global market. There have been ETFs approved, as you all know. And that’s why we look at market share and how we’re doing relative to peers, because markets go up and down, but if our market share is growing throughout all conditions, then over the long run, we’ll do very, very well on that side of the business. And that’s kind of our approach across all of the asset classes for the active trader business. But the goal is also to diversify the business so that we’re sort of like less reliant on volumes anywhere, in any one category to drive business results.
I think that’s kind of what you’re starting to see in this quarter’s results is really the performance of the company across all asset classes and even across wallet share with the net deposit growth numbers.
Jason Warnick: In terms of the mix element of your question on Europe, you’re right, it’s still a relatively modest contribution, the lion’s share came from our U.S. crypto business, but we like what we’re seeing, and tens of thousands of customers there. So, we’ll continue investing there.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Patrick Moley with Piper Sandler. Your line is open.
Patrick Moley: Yes, good evening. Thanks for taking the question. So I just had one on index options. I see it’s referenced in the deck, but I didn’t hear mentioned in the prepared remarks. So, are you still planning to roll out index options later this year? And then just on the economics, it’s my understanding that index options are much less profitable for the brokers than multi-listed options are. So just curious if — what your expectations are around how much of your current options trading could be cannibalized by index options? And if you do, or when you do roll it out, have you given any thought to potentially charging a commission on index options? Thanks.
Vlad Tenev: Yeah. So, we have announced that we are going to be launching index options. This is part of the overall goal of giving our active traders access to the best tools and the best value for their services. So, index options are coming in Q4. We’ll also be launching Futures as we’ve mentioned in the past. And as with any new Robinhood product, there’s two areas where we’d like to stand out in the broader marketplace. One is the user experience. We want to make sure that our tools are easy for active traders to use, particularly on mobile, but also on web with the new offering that’s coming there. And then economics. So, yeah, the economics, we intend to make very, very competitive, but also profitable for the company on a segment basis. So, Jason, I don’t know if you want to add anything more specific there.
Jason Warnick: Yeah, we’re still working with the team on the pricing structure for index options. So, we’ll have to stay tuned there. But agree with Vlad that we want it to be a great value for customers and also make a lot of sense for us economically.
Vlad Tenev: And we should note index options trade round the clock, which is one of the reasons why they become so popular. So, we don’t anticipate seeing a ton of cannibalization there.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Matthew O’Neill with FT Partners. Your line is open.
Matthew O’Neill: Yes. Hi guys. Thanks so much for taking my question. A lot of good ones asked and answered already. I was wondering though since you are seeing such a clear inflection point in the MAUs and you gave some incremental details around the growth there from card, both Gold and non-Gold sounds like 0.5 million each, could you help parse maybe the rest of the monthly active user growth even just anecdotally like more crypto-focused or more options and equity-focused? Thanks.
Jason Warnick: Yeah, absolutely. There is an impact to MAUs when crypto interest surges and we saw that in the quarter. And so that’s certainly a part of it. But when I look at the activity across the quarter, it was very broad-based; equities up, options activity up, certainly crypto retirement, Gold members, net deposits. And so, we really saw an overall lift that was reflected in the engagement numbers that you’re seeing.
Matthew O’Neill: Great. Thank you.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Ken Worthington with JPMorgan. Your line is open.
Ken Worthington: Hi, good afternoon. Thanks for taking the question. When we look at your promotions…
Vlad Tenev: Hi, Ken.
Ken Worthington: Hi. When we look at your promotions, they seem focused on gathering additional customer assets. Do you think such asset-focused promotions could endure over the intermediate term or even longer term as a business strategy? Any reasons why the competition might not either be able to or just might not follow you with promotions of their own? And as we think about other behaviors you want to target, are there others that promotions might make sense for you to target at some point in the future?
Vlad Tenev: Yeah. I can start with that. I think the first thing I should note is we’ve invested in building a strong data science and product analytics capability from inception in the company. And I think that’s starting to become a key differentiator now that AI is becoming more and more important, and now that we’ve started running these promotions, we look at it very closely. We can track them all sorts of ways across cohorts and different types of customer behavior. And we like what we’re seeing. I think Jason mentioned earlier in the call that for the 1% matches, we’ve been targeting a sub-one-year payback and that’s between two and three years for the 3% promotions, and the cohorts from 2023 have already paid back with 2024 looking good as well. So, we feel really good about the offering and you should see more creativity from the team going forward. I don’t think that we’ve fully excavated what we can do with this capability that we’ve built.
Jason Warnick: Yeah, Ken, we love that we’re taking share. We love that we’re winning assets against the incumbents. And in terms of your question about how durable it is in the medium to longer term, I don’t see any reason with our highly scalable platform that we can’t continue to offer promotions like that, especially with the attractive paybacks that we’re realizing. On your question about whether it’s something that could be copied by competitors, I think we could all come up with a handful of reasons why it would be challenging for them, whether it’s their cost structure or just their installed base, and defending that through a promotion like that. But we love the promotions here at Robinhood. And again, we like that we are taking share.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Benjamin Budish with Barclays. Your line is open.
Benjamin Budish: Hi, good evening, and thanks for taking the question. Just on the topic of competition, you highlighted that 25% of net transfers came from other brokerages. Can you just talk about like this customer cohort, how do they compare to your pre-existing customer base? Are they coming — are you seeing any behaviors? Are they coming for the high savings rate? Are they coming for the deposit bonus? Are they active traders? Are they engaging in crypto? Like any kind of characteristics of this cohort, are they similar or different from sort of like the existing customer base? Thank you.
Vlad Tenev: Yeah. They’re probably more similar than different. One of the things that I’d highlight is they’re coming in with average balances that are much higher than our typical historical customers. So, loving the quality of the assets being brought and the activity of the customers. And it’s really reflected too in the comments that we are making about payback periods on these promotions that we are seeing customers engage with our products in a way that generates revenue for us.
Operator: Thank you. I’m showing no further questions in the queue. I would now like to turn the call back over to Vlad for closing remarks.
