HomeFinance NewsFinanceRobinhood Killer Emerges: British App Crushes Profitability Barrier

Robinhood Killer Emerges: British App Crushes Profitability Barrier

  • ORIGINAL NEWS

Freetrade, Britain’s answer to Robinhood, posted its first quarterly profit


  • SUMMARY

British stock trading app Freetrade has achieved a significant milestone by hitting breakeven in the first quarter of 2024.

This marks the company’s first-ever transition into profitability after facing losses in previous years.

Freetrade’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached a positive £100,000 ($124,570) during this period.

The company’s preliminary revenue amounted to £6.7 million.

While Freetrade incurred a loss of £8.3 million in 2023, it represents a notable improvement compared to the £28.8 million loss recorded in the preceding year.

Despite the difficult market conditions prevalent in 2023, Freetrade’s revenues increased by 45%, reaching £21.6 million.

The company’s CEO and founder, Adam Dodds, highlighted their success in defying these challenging circumstances while significantly reducing losses.

This positive development is welcomed by crowdfunding investors, who have anticipated updates on the company’s progress towards profitability.

Previously, Freetrade’s valuation decreased by 65% during its latest equity crowdfunding round.

However, this was attributed to changes in the market environment, particularly rising interest rates and inflation.

Freetrade experienced a surge in net inflows (£130 million) during the initial quarter, fueled by increased retail investor activity in response to the resurgence of markets in 2023.

The company’s assets under administration also surpassed £1.8 billion.

Dodds emphasized their commitment to fulfilling the expectations of crowdfunding investors by outlining a clear path towards breakeven during their previous fundraising drive.

Looking ahead, Freetrade plans to implement major product advancements to support their anticipated growth phase.

In light of Robinhood’s entry into the UK market, Freetrade expresses optimism that increased competition and choices benefit retail customers.

They believe there will be multiple successful players in the UK market over time.

Freetrade attributes its first-quarter performance to higher trading volumes and increased foreign exchange income.

Additionally, the rise in retail investor engagement in crypto-correlated stocks due to favorable market speculation further contributed to their positive results.


  • NEWS SENTIMENT CHECK
  • Overall sentiment: positive
  • Positive



    “Freetrade’s crowdfunding investors will welcome the news as they anticipate the company’s move toward profitability.”

    “Dodds stated, “We defied difficult market conditions and delivered healthy growth in 2023 while dramatically reducing losses” in 2022.”

    Negative



    “Freetrade reduced its valuation by 65% to £225 million ($280.3 million) from £650 million in 2023 due to a different market environment with higher interest rates and inflation.”

    “In 2023, Freetrade still reported a loss of £8.3 million, which was lower than the £28.8 million loss reported the previous year.”

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