Online brokerage Robinhood Markets has filed for one of the most anticipated initial public offerings (IPO) of the year, revealing rapid growth that includes 18 million retail accounts and $80 billion U.S. in customer assets.
Unlike many recent IPOs, Robinhood was profitable last year, generating a net income of $7.45 million U.S. on net revenue of $959 million U.S. compared to a loss of $107 million U.S. on $278 million U.S. in 2019, according to a regulatory filing with the U.S. Securities and Exchange Commission (SEC).
However, Robinhood lost $1.4 billion U.S. in the first quarter of 2021 tied to emergency fundraising-related losses during January’s GameStop trading mania. The company generated $522 million U.S. in revenue in the first quarter if 2021, up 309% from the $128 million U.S. earned in the first quarter of 2020.
Options trading accounts for about 38% of Robinhood’s revenue while equities and cryptocurrencies are 25% and 17% of revenues respectively. The brokerage aims to raise $100 million U.S. in its public debut.
In its prospectus, the company said it has grown its funded accounts, those which have bank accounts linked to them, to 18 million in March of this year from 7.2 million in 2020, an increase of 151%. Assets under custody have grown to $80 billion U.S. from $19.2 billion U.S. last March. Monthly active users total about 17.7 million.
Robinhood plans to trade under the symbol “HOOD” on the NASDAQ stock exchange.
The brokerage plans to allocate 20% to 35% of its IPO shares to its retail customers.
Goldman Sachs, Citigroup and JPMorgan are the lead underwriters on the IPO.