eToro, the Israeli social trading platform heading for a $10.4 billion listing, on Wednesday reported that interim net trading revenue is expected to be around double of the previous year.
The online trading platform expects Q4 commissions in a range between $285 million and $295 million, compared to $222 million in Q3 2021 and $164 million in Q4 2020. Taking a full-year perspective, eToro said its operations would yield $1.2 billion in revenue for the full-year 2021. Again, this would be up 100 percent from the year before, when it achieved a net revenue of $600 million from total trading volume of $1.5 trillion.
Active client numbers were moderately higher in the period from a quarter before, as increased market activity exiting 2021 led to improved client trading volumes, eToro said. The company closed the last three months with a pickup in market volatility and client trading volumes following what was a more subdued environment from the start of the year.
Other business highlights, according to the company’s most recent filing with the US regulators, show that total registered users will hit 27 million by the end of Q4 2021. This millstone is achieved after eToro has onboarded approximately 2.1 million new registered users for the quarter to end, compared to 1.6 million new users in Q3 2021 and 1.6 million accounts in Q4 2020.
The social investment network has 2.4 million funded accounts on books as of December 31, 2021, compared to 2.1 million accounts as of September 30 and 1.0 million accounts at the end of 2020.
eToro SPAC merger is getting delayed
According to the letter from the CEO, Yoni Assia, as they approach the close of 2021, there is a growing number of retail investors around the world actively engaging with capital and crypto markets.
“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,” he added.
Looking ahead, Assia pointed to a diversification drive in winning new business and the positive future effect of the company’s upcoming Wall Street debut.
Per a recent report, however, eToro will not complete its SPAC merger with US SPAC Fintech Acquisition Corp by the end of 2021.
Going public through a blank-cheque company was originally scheduled for a Q3 closing at a massive $10.4 billion valuation. However, meeting investors to pitch a direct listing has hit a bump and the deadline was pushed back to the fourth quarter as the SPAC boom was already fading away.