Robinhood: Userbase growth from 2014 to 2021
Robinhood democratized investing and trading in America and I won’t be an inch wrong to say it. The successful company that it is today was a promising startup six years ago that wanted to make the process of investing and trading in the stock markets across the globe easy for the truly average joe like myself and you. And, after half a decade into the journey, Robinhood has really done that while also inspiring more than half a dozen startups around the world to enter a similar space.
Today I wanted to discuss its growth as a company in terms of the userbase for its products and services over the years. But before that here is official intro information of Robinhood for you the reader.
Wikipedia snippet about Robinhood: Robinhood Markets, Inc. is an American financial services company headquartered in Menlo Park, California, known for pioneering commission-free trades of stocks, exchange-traded funds, and cryptocurrencies via a mobile app introduced in March 2015. Robinhood is a FINRA-regulated broker-dealer, registered with the U.S. Securities and Exchange Commission, and is a member of the Securities Investor Protection Corporation.
The company’s revenue comes from three main sources: interest earned on customers’ cash balances, selling order information to high-frequency traders (a practice for which the SEC opened an investigation into the company in September 2020), and margin lending. End of the snippet.
Now for the numbers and they are amazing to look at. The userbase growth of Robinhood has basically gone from nothing in the years 2013, 14, and 15 to a whopping 22.5 million users as of the second quarter of 2021.
The graph given below shows us the exact detail of the information. Note: The userbase numbers are in millions.
As you can see the company has had only a half-million users in the year 2014. From there it grew at a steady pace to 10 million by 2019 and then 12.5 million by 2020. And then the unexpected happened. Things just skyrocketed and Robinhood reached an active users count of 22.5 million users by 2021. An increase of 10 million users just in one fiscal year. It’s unbelievable.
For a social media company, these kinds of numbers may look rookie but in the case of Robinhood as an investing and trading platform, this is something of an achievement to be proud of.
And things don’t actually seem to slow down for the company since it is constantly adding more and more new features along with new stocks, ETF's, and cryptocurrencies. Because of this, it is adding more users than ever which is also very much helping the company generate a good size of revenue on a quarterly and annual basis.
Kudos to Robinhood for making the world of investing and trading accessible and interesting to the average joe.
Thank you for reading this, and God Bless Everyone.
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Intro About Myself
Name: Tabbrez
Bio: Genius, Polymath, Entrepreneur, Philosopher.
Website: tabbrez.com
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