At this time 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 shoppers.
Personal IPO filings have develop into widespread in latest quarters, making Robinhood’s resolution to file behind closed doorways earlier than displaying its numbers to the general public unsurprising. That it has filed privately, nevertheless, implies that the corporate is nearer to a public debut than we’d 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 concerning the information of its non-public IPO submitting.
There are a number of the explanation why Robinhood could also be concerned about a near-term public debut, regardless of working into controversies in latest quarters. No quantity of time in front of Congress, bad PR from a user’s suicide, or settlements with the SEC can change the truth that right this moment’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 drastically in 2020, one thing that TechCrunch has coated by means of the lens of Robinhood’s fee for order stream, or PFOF revenue. The corporate informed Congress that the actual income supply was nearly all of its high line, which means that PFOF progress is an affordable 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’s going to go public typically quickly, although maybe not rapidly sufficient to get round offering Q1 2021 numbers. Extra once we get our palms on the submitting.