Robinhood filed its S1 on Thursday, which breaks down how much revenue it has, how much cryptocurrency it's hodling and how big of an impact market makers play into its financial performance.
Financials: Robinhood had revenue of $959 million in fiscal 2020, up 245% year-over-year. Net income was $7 million in fiscal 2020, improving from a loss of $107 million. The company reported first-quarter revenue of $522 million, up 309% year-over-year.
Customers: Robinhood ended the first quarter of 2021 with 18 million funded accounts. The company reported 17.7 million monthly active accounts and $81 billion of assets under custody.
Over 50% of customers on Robinhood name the platform as their first created brokerage.
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Cryptocurrency: Robinhood launched cryptocurrency trading in 2018 and it has become a big part of the business. In the first quarter of 2021, 17% of total revenue came from cryptocurrency transactions, compared to 4% in the fourth quarter of 2020.
“If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected,” the company said.
Dogecoin DOGE/USD represented 34% of cryptocurrency transaction revenue in the first quarter compared to 4% in the fourth quarter of 2020.
The company has seven cryptocurrencies available for trading and said Bitcoin BTC/USD was the most traded asset on the platform by trade volume representing $54 billion in the first quarter.
Robinhood had $3.5 billion in cryptocurrency assets under custody in 2020 and $11.6 billion in the first quarter.
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Market Makers: Robinhood lists its dependence on market makers in its risk factors. Over 75% of the company’s fiscal 2020 revenue came from market makers.
Citadel represented 34% of fiscal 2020 revenue, along with 18% from Susquehanna and 10% from Wolverine Holdings.
Plans for Growth: With an estimated 60% of U.S. adults not having investments outside a retirement account, Robinhood believes it can continue to add additional customers.
The company also plans on adding additional technology and products to grow with its existing customers. International expansion plans include Europe and Asia.
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