Crypto trading drives eToro’s revenue rise

Retail trading broker eToro reported continued strong momentum in its second-quarter earnings on Wednesday evening.

The company, which focuses on the social trading aspect of its platform, is due to go public via a $10 billion SPAC merger later in the year.

eToro reported a YoY rise of 121% in newly registered users to 2.6 million, while as of 30 June, assets under administration were $9.4 billion. Net trading income was $291 million, up 136% compared with Q2 2020 and total commissions rose to $362 million, representing a rise of 125%.

In the first quarter of the year, eToro onboarded 3.1 billion traders, bringing its total user number up to 20.6 million retail clients.


Yoni Assia, CEO, and Co-founder of eToro, commented:

Yoni Assia, eToro

Yoni Assia
Source: LinkedIn

We continue to see strong positive momentum and our Q2 numbers demonstrate ongoing growth in new registered users and total commissions. In line with this, funded accounts grew by 158% year on year to 2 million as of 30 June 2021.

Cryptoassets drove the company’s commissions in the second quarter, with eToro saying it represents the strong interest from retail investors in crypto markets. The trading was spread across different cryptocurrencies, with BTC, XRP, ETH, ADA, and DOGE seeing the highest trading volumes.

Assia continued:

The rise in self-directed investing and eToro’s growth are underpinned by long-term secular trends in investor behavior. We believe that investors are primarily looking for three things from a platform: simple access to the assets they want to invest in, including cryptoassets, an intuitive and user-friendly mobile interface, and financial education, including the ability to draw on the knowledge and insights of other investors. By providing all three in one platform, we are confident that we can lead the democratization of investing and continue to grow our share of an expanding market.

eToro’s net income was -$89 million, attributed to a non-cash charge of $71 million in stock-based compensation for eToro employees and $36 million in transaction costs concerning the SPAC merger with FTCV. In addition, the company’s adjusted EBITDA was $33 million for the period.

Shalom Berkovitz, eToro’s CFO, and Deputy CEO, said:

Shalom Berkovitz, eToro

Shalom Berkovitz
Source: LinkedIn

We remain focused on growth rather than short term profitability and have therefore continued to reinvest income across our marketing channels and in the continued expansion of our product offering and global presence.


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