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Robinhood, the online brokerage associated with increased daily trading by retail investors, points to a valuation of $ 40 billion or more in its initial public offering, according to people familiar with the plans. , as the company released its fundraising brochure on Thursday.
In a regulatory filing that took a first look at its financial performance, Robinhood said revenue tripled to $ 959 million last year, from $ 278 million in 2019, and its explosive growth. continued the first quarter of this year.
The platform has more than doubled its registered users since the beginning of 2021 to 31 million, he said. Of these, 18 million were accounts financed at the end of the first quarter, 151% more than at the end of 2020. It had revenues of $ 522 million in the first three months of the year, 309% more than the same period last year. before.
The pamphlet comes a day after U.S. regulator Finra imposed its highest fine ever recorded against the broker, a $ 70 million penalty it said caused “widespread and significant harm” to its customers. Failures included technical problems on the platform during periods of high volatility, Finra said.
An increase in “meme stock” trading like GameStop forced the platform to suspend trading some stocks in January, in an incident that strained the broker’s finances. Robinhood competed to secure $ 3.5 billion to investors at the time, a fundraiser that caused it to record a loss of $ 1.4 billion for the quarter. It recorded a net profit of $ 7 million for the full year of 2020.
Robinhood’s rapid growth has been accompanied by growing regulatory scrutiny, and Vlad Tenev, its co-founder and chief executive, was called to testify before Congress on January trade limits.
The pamphlet reported that he had received subpoenas related to the January trade restrictions and federal prosecutors executed a search warrant to obtain Tenev’s cell phone.
The company is also being investigated by the California Attorney General’s Office, the pamphlet revealed, and has set aside at least $ 15 million for fines in the possible resolution of a money laundering lawsuit from the Department of Financial Services. New York State.
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