TradeZero Lands SPAC Deal: What Investors Should Know

A leading trading platform on Tuesday announced a SPAC deal to go public.

The SPAC Deal: TradeZero announced a merger with Dune Acquisition Corporation DUNE in a deal valuing the company at a post-transaction enterprise value of $556 million.

The company will trade as TradeZero Global Inc on the NYSE under the ticker TRAD. Public DUNE shareholders will own 24% of the new company.

About TradeZero: Offering a full-featured trading platform, TradeZero has amassed a base of loyal and engaged customers.

The company founded in 2015 credits itself as being “built by active traders, for active traders. TradeZero offers many features that cater to active retail traders including its patent-pending short locate services, which makes it easier to short a stock.

Monthly plans offered by the company range from a free plan to averages of $59 a month.

The median age of a TradeZero account is 33 years old. The company counts 76% of its users as being from international territories.

Related Link: October SPAC Merger Calendar: A Look At Upcoming Votes, Stocks To Watch

Growth Ahead: TradeZero offers international access to the U.S. market for traders. The company plans on expanding this service going forward.

Plans to expand to Canada, Europe, Latin American and Asia Pacific regions are listed with respective dates of 2022, 2023, 2024 and 2024 in the company’s investor presentation.

The company’s expansion in crypto trading is also listed as a future growth initiative.

Financials: TradeZero averages $4,000 in revenue annually from new accounts. The average first-year account makes over 1,300 trades from their TradeZero account.

TradeZero accounts increased an average of 90% annually from fiscal 2019 to fiscal 2021. The company is estimated to hit over 21,000 accounts in fiscal 2021. Account growth is estimated at 62% annually from fiscal 2019 to fiscal 2023.

The company sees revenue hitting $85 million in fiscal 2021, up 55% year-over-year. Net income is estimated to hit $38 million in fiscal 2021.

Price Action: DUNE shares are trading flat at $9.88.