Immediately Bloomberg reported, and Axios confirmed that Robinhood has filed privately to go public. The well-financed Robinhood is an American fintech firm that gives zero-cost buying and selling providers to customers.
Non-public IPO filings have grow to be widespread in latest quarters, making Robinhood’s determination to file behind closed doorways earlier than displaying its numbers to the general public unsurprising. That it has filed privately, nonetheless, implies that the corporate is nearer to a public debut than we would have anticipated.
Robinhood has lengthy been anticipated to have a 2021 IPO in its plans. The corporate has not but responded to an inquiry from TechCrunch relating to the information of its personal IPO submitting.
There are a number of the reason why Robinhood could also be concerned about a near-term public debut, regardless of working into controversies in latest quarters. No period of time in entrance of Congress, unhealthy PR from a person’s suicide, or settlements with the SEC can change the truth that as we speak’s inventory market favors progress, one thing that the corporate has in spades. Or that latest IPOs have been rapturously obtained by public buyers as a cohort; it’s a heat time to pursue public-market liquidity.
The corporate’s income expanded vastly in 2020, one thing that TechCrunch has lined by way of the lens of Robinhood’s fee for order stream, or PFOF earnings. The corporate advised Congress that the actual income supply was the vast majority of its prime line, that means that PFOF progress is an inexpensive comp for the corporate’s mixture progress. And as TechCrunch has reported, these numbers rose sharply in 2020, from round ~$91 million in Q1 2020, to ~$178 million in Q2 2020, and ~$183 million and ~$221 million within the third and fourth quarter of final 12 months.
Robinhood additionally makes cash from shopper subscriptions, and different sources.
The truth that Robinhood has filed privately implies that it’ll go public generally quickly, although maybe not shortly sufficient to get round offering Q1 2021 numbers. Extra after we get our arms on the submitting.