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.

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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.

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