Jason Warnick: It’s a little harder in crypto to measure market share. It’s not as easy as it is with equities and options. But by our analysis, it does look like we’re gaining share in the coins that we offer. In terms of why, I’d probably point to the value proposition. We think we’re the best place for retail traders to buy crypto for the coins that we offer. And also, we think we’ve got just a great user experience. And so, those are the two things.
Vlad Tenev: I’d also add that we’ve offered customers great value in addition to a great customer experience. Like at Robinhood, you get more crypto for your dollar than most of our competitors. And I think we’ve started to do a better job communicating that in the user interface. So, we’re making it incredibly clear to – we’re trying to make it more and more clear to customers, just how good of a value they’re getting. And, of course, I’d add that it’s very important for us to be the most trusted and safest company in crypto. And I think with all the turmoil in the space over the past year or so, I think there has been a little bit of a flight to safety. And we’re seeing that reflected in some of the market share gains you’re seeing and that’s something that we’d like to continue to invest in.
Dan Dolev: Pretty amazing, great stuff. And then a quick follow up. Great progress on the retirement stuff. And we’re very excited about this year at Mizuho. Is it a fair statement to say that, over time, as this grows, this is going to show up in, obviously, like, bigger impact on MAUs, and the MAUs – it’ll kind of – cause a positive inflection in the MAUs because of the retirement account, the retirement offering?
Vlad Tenev: MAUs did increase from May to June. Of course, when you think about all the things we’ve been focused on as a company and on the product side over the past year, they haven’t naturally flown into MAUs because, even retirement itself, it’s sort of a passive long term investing product, and not typically a product that you associate with sort of like active trading or engagement, although there’s advantages for all types of investors with retirement products. Active trader investments, active traders are kind of a relatively small subset of the overall user base. So they drive a disproportionate amount of revenue, and making them really, really happy. You’re probably not going to see that as reflected in the MAU metric.
So, we’ve made a lot of progress over the past year. And I think that’s been progress that’s sort of like on another axis than MAUs and trader engagement. That said, we are working on a bunch of things that we think will bring more customers and more transactors into Robinhood. And we do expect, over the long run, the MAU metric to follow in – there’s a lot of investments in place that that we think will pay off for us there.
Jason Warnick: One of the things, Dan, that I’m really excited about is our continuing investment in Gold that really deepens the relationships with our customers. We offer them 4.9% on their cash sweep balances. And as we announced today, a 3% retirement match. And so, I think as we deepen our relationships with our customers, as we expand our product selection, you’re going to naturally see engagement tick up over time.
Dan Dolev: Yeah, I’d agree. Great results. Congrats again.
Operator: Our next question comes from the line of Steven Chubak from Wolfe Research.
Steven Chubak: Why don’t I start with a question on expense? You guys have done a nice job delivering efficiency gains while executing on the product roadmap. That said, your expense per employee is still relatively elevated when we benchmark versus fintech as well as retail brokerage peers. I want to get a sense as to where you see this metric projecting as the business scales and as you expand your geographic footprint.
Jason Warnick: I would generally agree with you. We’ve been focused on reducing our costs and rationalizing the headcount. And our intention is to be lean and scrappy in the way that we grow our business and drive leverage to our business over time. And so, we’ve been focused on our cost per employee, as you pointed out. One of the changes that we made earlier this year is we moved from a stock based award program that grants four year awards to a program that grants awards that vest over one year, and we think that that’s a prudent way to do it. Another thing, as we look at our employee footprint, we’re very heavily concentrated in higher cost areas in the US and that represents an opportunity for us to balance out the mix of geographies that we work in as Robinhood employees. So, it’s something that we’re working on and I see that as an opportunity.
Steven Chubak: Really helpful color. Speaking of operating leverage, I did want to ask on the profitability outlook. Looking ahead, just now you’ve reached GAAP profitability. Remind us how you’re thinking about normalized GAAP margins for the business at scale. And now that you’ve hit this milestone, was hoping you can give us an update on what the next milestone is that you’re aspiring to.
Jason Warnick: Look, long term, what I’d tell you is that our objective is to maximize GAAP EPS and free cash flow per share. We’re not giving any specific near term milestone targets there. But when I look at the cost structure of our business, it heavily skews towards fixed costs and less so towards variable costs, which if you can manage those fixed costs really effectively, as you grow your top line, you can deliver a lot of leverage to the bottom line. And so, as I think about, like, what kind of margins are possible for this business, I don’t see any reason why we can’t deliver the kinds of margins that you see in other financial services companies.
Operator: Our next question comes from the line of Michael Cyprys from Morgan Stanley.
