Robinhood is able to give to the wealthy.
Sooner or later after it agreed to pay $70 million to settle a broad vary of complaints associated to its enterprise practices, the web brokerage filed to go public in what will be probably the most extremely anticipated stock choices of the yr.
The corporate, which rode a wave of latest person development because the pandemic remodeled throngs of locked-down Individuals into day merchants, mentioned it made web revenue of $7.4 million on income of $959 million in 2020. However it warned that future profitability may very well be elusive, particularly because the COVID-19 disaster wanes and folks spend much less time watching stock tickers and Reddit. In 2019, Robinhood reported a web lack of $107 million on income of $278 million.
In its filing with the Securities and Alternate Fee on Thursday, Robinhood mentioned it had 17.7 million month-to-month energetic customers and that greater than half of these are first-time buyers. The corporate intends to commerce on the Nasdaq underneath the ticker image HOOD.
For a tech startup, Robinhood faces some distinctive challenges, notably the way it may develop exterior the US. (It presently doesn’t provide companies to the general public in different international locations.) The corporate acknowledged that increasing to worldwide markets will “expose us to vital new dangers” with regard to regulation and even geopolitics.
Robinhood hopes to lift $100 million within the IPO. It has not introduced a list date.
