Bloomberg reported today, and Axios has confirmed that Robinhood has filed in person to go public. Well-funded Robinhood is an American financed company that provides zero-cost trading services to consumers. Private IPO filing has become commonplace in recent times, with Robinhood deciding to file behind closed doors before showing its numbers to the public.
Although it has filed in person, it is clear that the company is closer to public debut than we expected. Robinhood is expected to have a 2021 IPO in its plans long before. The company did not respond to TechCrunch investigation into the news of its private IPO filing. Despite the recent controversy, there are various reasons why Robinhood is interested in a near-term public debut.
With no amount of time in front of Congress, dealing with bad PR or SEC from user suicide can’t change the fact that today’s stock market is in favor of growth, which the company has somewhere. Alternatively, recent IPOs have sharply accepted by public investors as a combination; this is a warm time to follow the liquidity of the public market.
The company’s revenue expanded massively in 2020, coming under the lens of TechCrunch Robinhood’s to pay for the flow of orders, or PFF income. The agency told Congress that the source of fixed income is the majority of its top line, meaning the PFF increase is a reasonable low for the company’s overall growth.
In addition, TechCrunch reports that numbers grew sharply in 2020, from around $91 million in Q1 2020, to ~$183 million in 2020, and to $178 million and $221 million in the third and fourth quarters of last year. Robinhood also monetizes from customer subscriptions and other sources.
The fact that Robinhood has filed this file confidentially suggests that it will made public soon, although perhaps not enough to provide Q1 2021 numbers. More when we get our hands on filing.