eToro Group has reported extremely strong numbers in Q2 2021, including growth of 136% in net trading income (YoY).
The multi-asset investment platform has presented its second quarter 2021 interim financial results, the first since it announced its plans to go public via SPAC with an implied equity value of $10.6 billion.
According to the interim report, eToro has welcomed 2.6 million new registered users, up 121% compared to Q2 2020, with total commissions jumping by 125% to $362 million, and assets under administration reaching $9.4 billion.
Yoni Assia, CEO and Co-founder of eToro, commented: “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.
“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: (1) simple access to the assets they want to invest in, including cryptoassets, (2) an intuitive and user-friendly mobile interface and (3) 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”, the CEO added.
The broker has added 10 new cryptoassets in recent months including Dogecoin and Shiba Inu, with its crypto offering being expanded with the launch of ETH 2.0 staking.
The trading firm is highly invested in financial education, having launched eToro Academy as an education hub with free resources to improve the understanding of financial markets.
In terms of sponsorships, eToro currently boasts more than 25 football teams as partners, including clubs from the English Premier League and German Bundesliga.
The broker also reported that its Americas operation – United States and Latin America – accounted for 12% of funded accounts at the end of Q2 2021 up, which is the double from last year.
eToro’s offering in the U.S. launched in 2019 and is currently limited to crypto and copy trading, having grown considerably over the past year on the back of demand for exposure to cryptocurrencies.
That is why cryptoassets drove total commissions in the second quarter of 2021 and the highest trading volumes were in BTC, XRP, ETH, ADA and DOGE.
On the downside, net income was negative $89 million primarily due to a non-cash charge of $71 million in stock-based compensation for eToro employees and $36 million of transaction costs related to the business combination with FTCV. Adjusted EBITDA was $33 million for the second quarter of 2021.
Shalom Berkovitz, CFO and Deputy CEO, commented: “eToro is on track to hit our 2021 forecast supported by a strong second quarter*. 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.
“Looking beyond the Q2 numbers, the volume of new users joining eToro and overall trading activity on the platform has slowed to date in the third quarter compared to the all time highs of H1 2021. We were conservative when we prepared our forecast and anticipated varied market conditions and retail investor behavior.
eToro is a case of extraordinary success in global trading platforms, having made its name with social trading. Now, it offers retail investors access to multiple different financial products from commission-free fractional shares and ETFs through to commodities and cryptoassets.
