Robinhood’s quarterly crypto-related revenue for the July–September 2021 quarter is expected to be negative. The forecast is contained in the amended form S-1 filing by the crypto-friendly platform with the SEC.
The deterioration will be driven by softer client trading activity, including as the vacation season begins, and by the unwinding of previously imposed COVID-19 restrictions.
Overall, the company expects revenue to range from $546 million to $574 million after $522 million in the first quarter.
According to the document, the platform’s management plans to price the shares in a range of $38 to $42 and to raise more than $2 billion in an IPO. Up to 35% of the offering will be reserved for Robinhood users at a price of around $40.
Earlier ForkLog reported that in January–March 17% of total revenue came from crypto transactions (in the previous three months — 4%). A third of this amount came from client transactions involving Dogecoin (4%).
Robinhood reserved $15 million to settle claims by the New York State Department of Financial Services.
Follow ForkLog’s news on Twitter!