Michael Cyprys: Maybe just starting with the active trader opportunity set, I was hoping you might be able to update us on the opportunity set with futures. I know you guys have some plans to launch that this year. I believe maybe you can update us on the progress there and the build out. Similarly, on cash-settled index options, where is that on the priority list? And what sort of investment is required on your platform to enable that? Or could you just flip the switch and enable that today?
Vlad Tenev: Futures is something that we’re very excited about. We have been spending a lot of time thinking through how to make a really, really great customer experience, particularly on mobile because as we look at the other offerings in the market, we think that there’s a gap that we can fill with user experience, particularly on mobile. So we’re spending a lot of time thinking through that, talking to customers. And we’re putting together a really, really nice offering. Right now, we’re estimating that it’ll land in the first half of 2024. And the team is hard at work, just making the product as great as possible for our customers. I think on the cash-settled options front, we’re also hearing that from customers that that’s an attractive product and will enable them to manage their risk. That’s also slated to land in the first half of 2024.
Michael Cyprys: Just a follow-up question on the X1 acquisition. I was hoping you could talk about your go-to-market strategy for how you’re thinking about bringing the card offering to your existing customer set and broadening it out over time. Where do you think there’s room in the marketplace for differentiation? Can you talk about the underwriting process and the criteria there, just given some of the potential customers may not have much income or credit history? How do you get comfortable and manage the credit risk that this introduces?
Vlad Tenev: I think that’s a great question. In terms of go-to-market, we kind of see two near term opportunities that are interesting. One is just making a great card available to sort of the typical Robinhood customer. Robinhood customers, a lot of them are credit card primary. And we’ve been hearing lots of feedback from them on what types of offerings they would like. And we think that we can make something that’s really, really compelling for them. We also see an opportunity – and I mentioned this a little bit earlier – for people who are younger, maybe college students, people with limited credit history, but reasonable earning potential like immigrants, who have a hard time getting credit right now. And we think with technology and the underwriting capabilities that X1 has offered and has kind of been improving over time, we can build something really, really good for them as well.
Of course, credit is an incredibly important market, a large space as a business. There’s a lot of margin to be had there, so we’re not just going to stop there. We want to build a suite of comprehensive credit solutions across multiple products for our customers. So this is just the beginning. But when we think – even within credit cards, there’s a massive opportunity for us.
Jason Warnick: One of the things that we were really excited about for the X1 team is just the quality of their team around underwriting. And we were really impressed with the high quality nature of their loan book. It’s prime, prime plus. So really happy with that. And in terms of their underwriting, they look at things like income and credit bureau and the normal things that you’d expect the teams to be looking at.
Michael Cyprys: Great, thank you, and congrats on the profitability milestone this quarter.
Operator: Our next question comes from the line of Ken Worthington from J.P. Morgan.
Ken Worthington: I wanted to follow up on the monthly users question earlier. So a couple of points here. Maybe first, you have 23 million accounts and MAU is about 11. So, first, funded accounts were at their highs in 2Q and market conditions have been improving in what, I guess I’d call, the more innovative part of the stock market this year. But MAUs were at their lows in 2Q. So I guess maybe first, does this relationship between MAUs and funded accounts seem sort of reasonable to you over time. Maybe second, as we look at this, call it, 10 million account gap between the two, what portion of these inactive accounts are ones that you think you can get to re-engage in normal market conditions or if market conditions stay normal sort of over time?
Jason Warnick: One of the one things that is a weakness of MAUs is it’s measuring engagement just for those that engaged in the month. And for more active traders, I think that there’s a fairly high correlation there. But for the broader set of customers, less so. And we provided a couple quarters ago some context that MAUs for all of Q4 was 16 million and for the past six months was over 20 million. And so, it’s not that they’re dormant customer accounts, it’s that they’re just not necessarily engaging every single month. And for a lot of people, it’s actually a very normal and healthy amount of engagement. I do think, over time, as we broaden our product selection and deepen relationships with customers that you’re going to see a more consistent relationship between MAUs and total funded accounts. But in the shorter term right now, we have seen those kind of move in opposite directions.
Vlad Tenev: I’d also add that there’s sort of an asset dependency here, like the brokerage side with equities, and particularly growth stocks, like that market has been doing rather well in Q2, but crypto has kind of continued to soften. So you sort of see multiple conflicting things. And that can be reflected in the MAU numbers because a significant percentage of our customer base is customers that trade crypto as well.
Jason Warnick: MAUs, Ken, moved up a little bit in June versus May and it moved up a little bit more in July. So it appears to be stabilizing and kind of moving back up a little bit.
Ken Worthington: Just two simple numbers questions. So thanks for the retirement and the Gold account numbers. Any chance that you would give us fully paid sec lending accounts and clients that have opted to use the cash card?
