Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
So really seeing strong engagement and increasing market share
I mean, you had a fantastic quarter
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
It's very good with all the momentum you have there
We're working hard to make great improvements to our tax law and P&L tracking this year and we hope you will like them
Gold subscribers were up 25% to 1.4 million and assets under custody exceeded $100 billion, fueled by the strength of our 27% organic growth in net deposits, and we've launched brokerage in the UK and crypto in the EU
We're really pleased with the progress that we're making on the inputs of the securities lending business, particularly fully paid securities lending equities enrolled in the program increased from Q3 to Q4 from $10 billion to $14 billion
So overall, we feel really good about delivering strong revenue growth in this current macro-environment
So really, really pleased with that, added 500,000 customers into the program a sequential quarter basis
So I love the momentum we're building and I'm excited about 2024
We had a strong Q4 and 2023, and we have a lot of momentum starting 2024
Looking at 2023, we delivered significant profitable growth with record full-year revenues, record adjusted EBITDA, and record adjusted EBITDA margins
We grew revenues 37% to $1.9 billion, delivered adjusted EBITDA of $536 million, which is more than three times our prior high, drove 124% incremental margins as revenues grew by more than $500 million, even while we lowered costs
And we expanded adjusted EBITDA margins of 29%, as we make progress over time towards the 50% plus levels we see from incumbents
And as we continue to execute here, you should be able to track the progress and continued market-share gains across all the assets that we offer including equities, options, and crypto
So we're very excited about that
Q4 was also our sixth straight quarter of positive adjusted EBITDA
We're pleased with our results in 2023 and aim to continue delivering profitable growth in 2024
I think the team has done tremendous work making the 24 Hour Market offering better and better
We delivered strong Q4 net deposit growth at a 21% annualized rate
For winning in the active trader market, there is user experience improvements, new assets like futures and index options
When we look at historical customer cohorts, we see they have consistently added to their net deposits over time, which we think provides a strong foundation for sustainable long-term asset growth
And so we feel really good that we've got a nice natural hedge in the business between interest rates falling and interest in trading picking up
So we feel really good about the head count posture that we have
And we're really excited about the momentum that's giving us to start the year
There is a lot of improvements in our passive offerings like retirement, the roadmap there is full and we're very excited about the credit card
So we're really pleased to be offering all 11 of the Bitcoin ETFs on the first day of trading, I think that was a great outcome for customers
So we feel really good to offer the selection for customers
We also have strong momentum to start the year, as we added another 60,000 gold subscribers in January alone, that is nearly three times the monthly average we saw in 2023
Amazing results, congratulations team, really good, making me proud
       

Bearish Statements during earnings call

Statement
I think it really has the potential to disrupt the wealth management industry just in the same way that we've been disrupting trading
Equities declined again
These increases were partially offset by the anticipated decline in net interest revenues from lower sec lending demand across the industry
Your stock price is down 70% since the IPO
And then just a follow-up on the equities and options take rate, those have been coming down for the last couple of quarters
Again I want to emphasize, we're not getting complacent
At the at the moment, the rebate rates that we're seeing are lower across the industry
And so not having that in the UK is not a big concern
So we think 2024 is the year when we'll see interest rates shift from being a headwind for our business growth into a tailwind
   

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