Welcome to Extreme Investor Network, where we bring you the latest updates and insights on the world of finance. Today, we are excited to share with you the news about Freetrade, a British stock trading app that recently achieved breakeven for the first time.
According to unaudited financial statements shared with CNBC, Freetrade reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000 in the first quarter of 2024, marking a significant milestone for the company. Preliminary revenue for the quarter reached £6.7 million, showcasing promising growth potential.
Freetrade’s journey to profitability has been a remarkable one, especially considering that the company incurred a loss of £8.3 million in 2023. However, with revenues climbing to £21.6 million last year, Freetrade has managed to reduce its losses significantly while delivering healthy growth under the leadership of CEO and founder, Adam Dodds.
Equity crowdfunders who have invested in Freetrade can rejoice at this news, as the company’s move toward profitability bodes well for their investments. Despite a challenging market environment that led to a 65% reduction in Freetrade’s valuation during its latest equity crowdfunding round on Crowdcube, the company remains optimistic about its future prospects.
With net inflows totaling £130 million in the first quarter and assets under administration reaching £1.8 billion, Freetrade is well-positioned for further growth. CEO Adam Dodds has outlined a clear path towards breakeven, reassuring crowdfunding investors of the company’s commitment to financial stability and success.
Freetrade’s performance in the first quarter was driven by higher trading volumes and increased retail investor activity, buoyed by resurgent markets and speculation over central bank policy decisions. Additionally, a rally in crypto prices contributed to Freetrade’s success, despite the platform not offering crypto trading.
As a competitor to Robinhood, the U.S. stock trading platform, Freetrade remains undeterred by the re-entry of Robinhood into the U.K. market. CEO Adam Dodds believes that more choice and competition benefit retail customers, and he is confident that Freetrade’s unique offerings will continue to attract investors in the region.
Looking ahead to the rest of 2024, Freetrade has major product developments in the pipeline, including the rollout of a web platform to support its next phase of growth. With a strong focus on customer satisfaction and financial stability, Freetrade is poised to make a significant impact in the financial markets.
Stay tuned to Extreme Investor Network for more updates on Freetrade and other exciting developments in the world of finance. Join us as we explore the latest trends and opportunities in the dynamic world of investing.