Fresh off the heels of a $70 million fine, Robinhood has dropped an S-1. It’s been a long time coming.
After a quick first glance, its clear that Robinhood has grown quite a bit. Here’s a run-down of what we can get at a glance (the post will be updated as we analyze the S-1 more).
Cumulative funded accounts
In Q1 2020, Robinhood reported 7.2 million funded accounts. Over the same period of time in 2021, the company reported 18 million funded accounts. It’s a substantial amount of growth.
However, Robinhood acknowledges in its S-1 “the circumstances that have accelerated the growth of our customer base in recent periods may not continue in the future, and we do not expect the growth rates in our Net Cumulative Funded Accounts to be sustainable.”
For the total year of 2020, Robinhood, somewhat surprisingly (to me), managed to pull in $7.4 million in profit.
But that was short lived. For the first three months of 2021, Robinhood lost a startling $1.4 billion. How? A “change in fair value of convertible notes and warrant liability” charge of $1.49 billion.
In Q1 2021, transaction-based revenues hit $420.4 million. It’s a substantial increase over Q1 2020 transaction-based revenue, which came out to $95.6 million.
What accounts for the substantial increase? Crypto.
As a percent of revenue, cryptocurrencies went from 3% in Q1 2020 to 17% in Q1 2021.
It appears that Robinhood was able to capture quite a bit of the hype around crypto earlier in the year.
Post will be updated as S-1 is further analyzed.