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How Robinhood’s explosive development price got here to be

This afternoon Robinhood filed to go public. TechCrunch’s first take a look at its outcomes could be discovered right here. Now that we’ve finished a primary dig, we are able to take the time to dive into the corporate’s submitting extra deeply.

Robinhood’s IPO has lengthy been anticipated not solely as a result of there are billions of {dollars} in capital using on its impending liquidity, but additionally as a result of the corporate turned one thing of a poster baby for the financial savings and investing growth that 2020 noticed and the COVID-19 pandemic helped engender.

The buyer buying and selling service’s merchandise turned so well-liked and enmeshed in well-liked tradition due to each the “stonks” motion and the bigger GameStop brouhaha, that the corporate’s public providing carries way more weight than that of a extra common venture-backed entity. Robinhood has followers, haters, and plenty of an observer in Congress.

No matter all that, at this time we’re digging into the corporate’s enterprise and monetary outcomes. So, if you wish to higher perceive how Robinhood makes cash, and the way worthwhile or not it truly is, that is for you.

We are going to begin with a extra in-depth take a look at development and profitability, pivot to studying in regards to the firm’s income make-up, talk about a danger issue or two, and shut on its choice to supply a few of its personal shares to its customers. Let’s go!

Inside Robinhood’s development engine

Earlier than we get into the how of Robinhood’s development, let’s talk about how huge the corporate has develop into.

The fintech unicorn’s income grew from $277.5 million in 2019 to $958.8 million in 2020, which works out to development of round 245%. Robinhood expanded much more rapidly within the first quarter of 2021, scaling from year-ago income of $127.6 million to $522.2 million, a achieve of round 309%.

These are numbers that we frankly don’t see typically amongst firms going public; 300% development is a pre-Sequence A metric, often.