The Freetrade logo on a smartphone screen.

Rafael Henrique | Sopa Images | Lightrocket | Getty Images

British stock trading app Freetrade hit eked out breakeven earlier this year, the company told CNBC, marking its first-ever move into the black after incurring full-year losses in 2023.

Freetrade reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000 ($124,863) in the first quarter of 2024, according to unaudited financial statements shared with CNBC.

Preliminary revenue hit £6.7 million in the quarter.

Freetrade still generated a loss of £8.3 million in 2023, down from the £28.8 million loss it racked up the year before. Revenues climbed to £21.6 million last year, up 45% from 2022.

“We defied difficult market conditions and delivered healthy growth in 2023 while dramatically reducing losses” in 2022, said Adam Dodds, CEO and founder of Freetrade.

Equity crowdfunders rejoice

The development will be welcome news for Freetrade’s crowdfunding investors, who’ve been looking for an update on the company’s move toward profitability after a tough financial period.

Freetrade saw its valuation reduced by 65% to £225 million ($280.3 million) from £650 million in 2023 in its latest equity crowdfunding round on Crowdcube, with the company blaming a “different market environment” plagued by higher interest rates and inflation.

Net inflows totalled £130 million in the first quarter, too, as retail investor activity grew in response to resurgent markets last year. Assets under administration also reached £1.8 billion.

“Importantly for our crowdfunding investors, we laid out a clear path towards breakeven during our last fundraise,” Dodds said.

“As we look ahead to the rest of 2024, we’ve got major product developments that are going to support our next phase of growth with preparations being made to roll out our web platform.”

Equity markets saw serious drops in 2022 as a result of macroeconomic uncertainty and higher interest rates stoked by Russia’s full-fledged invasion of Ukraine, which triggered a risk-off trade around the world.

Britain’s answer to Robinhood

View Original Source Here

You May Also Like

Astra conducts layoffs, raises debt and shifts focus to spacecraft engines in bid to survive

In this article ASTR Follow your favorite stocksCREATE FREE ACCOUNT An Astra…

FDA approves Alzheimer’s drug Leqembi, paving way for broader Medicare coverage

In this article 4523.T-JP BIIB Follow your favorite stocksCREATE FREE ACCOUNT The…

The Most Dazzling Fashion Icons 2020

2020 will chronically be marked as one of the weirdest times in…

Mortgage rates fall sharply to under 7% after inflation eases

A ‘For Sale’ sign is posted in front of a single family…