Finance Feeds logo

eToro expects to generate $1.2 billion in 2021 revenue

abdelaziz Fathi

Israeli social trading network eToro today announced preliminary unaudited financial results for the fourth quarter and the full year ended December 31, 2020.

etoro

The company expects to generate $1.2 billion in revenue for the full-year 2021, a 100 percent increase year-on-year from $600 million in 2020.

According to the investor update published by eToro, the company anticipates amassing a total trading commission between $285 million and $295 million. This compares to $222 million in Q3 2021 and $164 million in Q4 2020.

In addition, the report outlines eToro added approximately 2.1 million new registered users in Q4 2021. This figure is up by 33 percent from 1.6 million new clients the company onboarded in the third quarter.

As a result, eToro expects to have 27 million total users and 2.4 million funded accounts as of December 31, 2021. Assets under administration (AUA) also stood at $10.6 billion in Q3 2021, up 13 percent compared with Q2’s $9.4 billion.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

Crypto trading activity declined from record highs

Yoni Assia, CEO and Co-founder of eToro, commented: “Our preliminary fourth quarter 2021 financial metrics show continued strong growth and demonstrate that we are executing very well on our business plan. Our fourth quarter 2021 preliminary results point to full-year 2021 total commissions of approximately $1.2 billion, representing more than 100% year-over-year growth. We continue to see a strong increase in the number of users engaging with our platform across our global footprint and are very excited for what lies ahead in 2022 and beyond.”

eToro has been among the biggest beneficiaries of the retail investing COVID-19 boom. While eToro’s social investing product did most of the success since its inception 15 years ago, cryptocurrency trading on the platform took off. Trading commissions generated from digital asset trading accounted for nearly two thirds of the total commissions eToro earned in 2021.

But in the third quarter, crypto trading activity declined from record highs earlier in the year, leading to considerably fewer new funded accounts.

Despite the bullish performance, the company’s adjusted EBITDA for the Q3 2021 was -$25 million, largely driven by “significant investments in growth initiatives,” including marketing, it said.

Subscribe

Read this next

Retail FX

Robinhood delists Solana, Cardano, and Polygon amid SEC’s crackdown

Commission-free brokerage Robinhood Markets announced on Friday that it would be delisting three crypto tokens from its platform. The decision comes shortly after the U.S. regulators intensified its regulatory actions against major cryptocurrency exchanges.

Digital Assets

US wants Bittrex to settle federal dues before compensating customers

The U.S. government has raised objections to Bittrex’s proposal to compensate its customers, adding to concerns about the resolution of the crypto exchange’s bankruptcy case.

Bittrex
Digital Assets

Binance prepares to suspend US dollar funding after SEC crackdown

Binance.US said it will temporarily suspend US dollar deposits and provided customers with a deadline to withdraw their fiat balances. This decision comes after the US Securities and Exchange Commission (SEC) filed a lawsuit requesting the freezing of Binance’s assets in the country.

Binance.US
Digital Assets

Januar launches real-time payments network to fill gap made by Silvergate and Signature

“To all the entrepreneurs and innovators out there is a clear message: if you are a legitimate European business working with crypto then Januar is here to provide you with the account and payment infrastructure you need to operate successfully and build the financial system of tomorrow.”

Retail FX

Exness’ active clients top 515K as monthly volume hits $3.35 trillion

FX trading volumes are climbing again as economic uncertainty spurred by recent developments over central banks’ policies encouraged speculators to pile back into the market.

Exness Dove
Technology

Danske Bank plans signficant investment in digital platforms

“We have decided to significantly increase our investments in our digital platforms, expert advisory services and sustainability, focusing on the areas where we see the best opportunities for profitable growth.”

Digital Assets

ERD DeFi Lending Platform and USDE Stablecoin Unveiled at EDCON 2023

ERD, the Ethereum Reserve Dollar, is a decentralized lending platform and stablecoin that aims to provide a capital-efficient, decentralized, and stable solution to the challenges faced by the stablecoin industry, introducing a minimum collateralization ratio of 110% and a robust liquidation mechanism.

Institutional FX

CMC Markets acquires 33% stake in UK blockchain firm StrikeX

“This is a major strategic investment in the growing Web 3.0 technology space of which StrikeX Technologies gives us access to the very best technology and advancements. StrikeX is a brilliant, young dynamic company, with a very talented team that has its finger on the pulse of fast moving technologies.”

Digital Assets

Archax utilizes Hedera Hashgraph DLT to tokenize interest in abrdn’s money market fund

“It is exciting to see a tangible application of Archax’s tokenization engine working with Hedera and it paves the way for us to look at creating other digital, blockchain-based token investment solutions.”

<
✖