John Todaro: Great. Thanks for that. And then just one more on the MetaMask integration. I think that’s really interesting. It does kind of pivot Robinhood to be more of that fiat onramp to the ecosystem defi on chain stuff. Just curious though, what is kind of the monetization strategy with that integration, short term and then longer term?
Vlad Tenev: Yeah, so we collect fees on the activity of the on-ramp, so that’s the primary source of monetization. And then any trading on our platform for that on-ramp also would show up in our transaction-based revenues.
John Todaro: Got it. Understood. Thanks.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Patrick Moley from Piper Sandler. Your question, please.
Patrick Moley: Yeah, thanks for taking the question. I just had one on Robinhood Gold. Just hoping you could update us kind of on how you think about pricing there. With the expanded offerings that you’re adding, $5 a month seems like somewhat of an inexpensive price to pay. So just hoping you could update us on your thoughts there. And then maybe as we look internationally, how you sort of think about taking the subscription model overseas and how you see that playing out with a different kind of geographic customer mix. Thanks.
Jason Warnick: Yeah, this is Jason, I’ll start and we’ll see if that has any additional color. We love the Gold program, Gold members have an ARPU that’s multiples of our average ARPU. And you’re right, the $5 a month it’s just a screaming deal. We want it to be obvious for every customer that they should be a Gold subscriber. So we’re paying close attention to the behavior of Gold. They’re bringing in more net deposits, they’re using more of our products, and they do all that with a relatively modest monthly subscription. We’ll evaluate pricing over time. But all in, we just love the economics of the Gold subscription. And I do think over time there is an opportunity for us to take Robinhood Gold internationally.
Vlad Tenev: Yeah. I don’t have much to add there. I think that other financial service companies offer these Gold perks to their high net worth customers. And usually, there is balance requirements. You have to have millions of dollars in your account. And so we think it’s very mission-aligned to provide those same types of services to any customer for such a small monthly fee. I think it really has the potential to disrupt the wealth management industry just in the same way that we’ve been disrupting trading. And our focus has been on making the experience even better, getting the adoption rate up, making it easy for new customers in particular to onboard onto the product. We’ve seen really healthy improvements in sort of like the first week attach rate of Gold among new customers. And we think that there is further improvements and we’ve got a lot slated for this year to make the Gold offering even better.
Patrick Moley: Okay, that’s great color. And then just a follow-up on the equities and options take rate, those have been coming down for the last couple of quarters. Options fee capture seemed to stabilize somewhat in the fourth quarter. Equities declined again. So just kind of as we look out to the next year, how do you think — or how do you see the take rates there kind of –what’s the trajectory over next couple of quarters? I guess, is the question. Thanks.
Vlad Tenev: Yeah, you bet, I’d zero in on options for that. For the back half of the year both Q3 and Q4, we were running at $0.41 per contract. And in January, we’re in that zone, but the mix is improving a bit. So we’ll have to see how the year plays out and nothing really to highlight on the equity side.
Patrick Moley: Okay. Thanks, guys.
Vlad Tenev: Thank you.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Ken Worthington from JPMorgan. Your question, please.
Ken Worthington: Hi, good evening. Thanks for taking the question. As we look to election season in the SEC, do you expect the SEC will execute on the market structure changes proposed last year for equity markets? And if so, do you think there — that equity market structure changes will differ from the original proposals or are they likely to stay on track? And which are kind of most important to Robinhood here?
Jason Warnick: So, we think a fair amount will probably be executed heading up into the election season. I think BestX is an important aspect to that. We participated in the comment process and we feel like a fair number of our comments were incorporated, and that’s baked into, really the expectations that we have for 2024.
Ken Worthington: Okay. Great. Thank you. And then on TOAs, you mentioned that the TOAs are positive for the major brokers. Are you seeing positive transfer of assets from the major crypto providers as well?
Vlad Tenev: So it’s a little bit difficult to reconcile the crypto activity in that way because a lot of people use crypto or Robinhood as an on-ramp to transfer, to purchase crypto, and then kind of use it in the Web3 ecosystem. So it’s a little bit different of a behavior than brokerage ACAP transfers, where those assets tend to sit and accumulate. So I don’t think you can make really a apples to apples comparison.
Jason Warnick: The one thing, Ken, that I’d highlight is that the crypto volume on Robinhood nearly doubled in Q4. So really seeing strong engagement and increasing market share.
Ken Worthington: Okay. Great. Thank you very much.
Jason Warnick: Thanks, Ken.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Benjamin Budish from Barclays. Your question, please.
Benjamin Budish: Hi, good evening, and thanks for taking the question. I wanted to follow up on an earlier question about taking the subscription model overseas. Maybe can you talk a little bit about, now that you’re rolling out in the UK, what the revenue model looks like over there? I mean, I think we all understand it will look somewhat different than the US, but can you kind of give us — any kind of color on what that should look like as the platform ramps over there? What are the kind of main sources of revenues? Thank you.
Jason Warnick: Yeah, Ben, I’d say in the UK we know that payment for order flow isn’t allowed, but really all of the other income streams are available there over time. So margin, fully paid securities lending, certainly interest on cash. And so I would say, as we look internationally, the revenue characteristics and ARPU in some jurisdictions will be a little higher than the US, some a little lower. But on average, we think that the income potential is pretty much on par with what we’re seeing in the US.
Vlad Tenev: And we know that market in particular is very used to subscription products. So we’re definitely hard at work, crafting a great Gold experience for international.
Jason Warnick: Yeah, and remember that payment for order flow is actually a pretty modest portion of our revenue for equities trading in the US. And so not having that in the UK is not a big concern.
Benjamin Budish: Got it. That’s helpful. And maybe one follow-up, maybe sort of connected. Can you talk about the activity you’re seeing in your 24 Hour Market? I know some of the appeal is for overseas investors who are far away in different time zones. But you’ve talked in the past about expanding access outside of the traditional trading hours. So what sort of activity are you seeing there? What kind of uplift might you see as you kind of continue to rollout more stocks to that offering? Thank you.
Vlad Tenev: Yeah. I think the team has done tremendous work making the 24 Hour Market offering better and better. We started with a pretty limited set of names, roughly a year ago. They’ve been adding names by the hundreds, so we have somewhere around 900 tickers available in the overnight trading session. Hundreds of thousands of our customers have used the product and we’ve seen particularly strong activity around earnings, when really, Robinhood is among the only places available to trade some of these tickers. So we’re going to continue to invest there. I think there’s a lot to do, particularly as we improve the active trading tooling and offerings because this product is resonating particularly well among our key active trader customers.
Benjamin Budish: Got it. Thank you very much.
Operator: Thank you. This does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Vlad Tenev for any further remarks.
Vlad Tenev: Yeah. Thank you all. Great questions. And the team is already hard at work getting 2024 started. So not much holiday rest here for Robinhood. We look forward to seeing you next quarter.
Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
