According to the company’s CFO, the newly listed stock trading app Robinhood is not seeking a second offer in order to benefit from the share price increase driven by private investors.
“It doesn’t do me good to call Robinhood a meme stock,” said Jason Warnick, CFO of Robinhood, CNBC’s Kate Rooney in Squawk Box on Thursday. “In response to your question about additional fundraising, we currently have no plans to raise additional funds.”
A week after Robinhood’s lackluster debut at $ 38 per share, the stock saw its share price surge. The free trade pioneer became part of the meme stock craze it once sparked, and retailers drove a stunning rally. Robinhood stock hit $ 85 at times after falling back to $ 49.80 from its current level.
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After reporting record second-quarter sales on Wednesday, Warnick said the fundamentals for Robinhood are strong.
“We have 22 and a half million customers, our record quarter of $ 565 million. I think our business has a really strong unified economy, ”added Warnick.
Robinhood’s revenue more than doubled to $ 565 million in the second quarter, aided by a massive surge in crypto trading. However, stocks lost 9% on Thursday amid investor concerns about a possible slowdown in trading. Market participants could also worry whether volatile cryptocurrencies can continue to provide such tailwind for brokerage.
Revenue from crypto trading was $ 233 million, more than half of all transaction-based revenue of $ 451 million for the second quarter. The revenue share of cryptocurrency rose from 17% in the first quarter to over 51%.
Warnick also said Robinhood has enough capital to take another shock like the January GameStop short squeeze.