“We expect our revenues for the quarter ended September 30, 2021 to be lower than the quarter ended June 30, 2021, due to lower levels of trading activity from record levels of trading activity, in especially in cryptocurrencies, during the three months ended June 30, 2021, and expected seasonality, ”Robinhood said in a filing with the Securities and Exchange Commission.
The estimated slowdown in trade is from a Robinhood record in the second quarter of this year.
On Monday, the popular trading app filed a request with the United States Securities and Exchange Commission to launch its IPO, with plans to raise more than $ 2 billion when it IPO. The company hopes to sell 55 million shares in a range of $ 38 to $ 42 per share.
Robinhood also predicts a slowdown in new customers in the third quarter. “We expect the growth rate… to be lower… due to the unusually strong interest in trading, especially cryptocurrencies, which we experienced during the quarter ended June 30, 2021 and seasonality. global trading activities, ”according to the filing.
The trading app, which aims to democratize investing, seeks second-quarter revenue of between $ 546 million and $ 574 million, up 129% from the same period there is one year old.
Robinhood has reported a new record number of young investors entering the market during the pandemic. This retail frenzy was evident when the meme stock trading mania took hold of some stocks, including GameStop and AMC.
“We have experienced strong growth in the number of new customers in the first six months of 2021,” the file said. “We don’t know if, in the long run, the cohorts made up of these new clients will have the same characteristics as our previous cohorts. To the extent that these new clients do not increase their cumulative net deposits or their frequency of trading on our platform to the same extent as new clients have joined in previous periods, our ability to extend and develop our relationship with these customers will be affected. “
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