Social Investment Network eToro Reports Third Quarter 2021 Financial Results

eToro Group Ltd (“eToro” or the “Company”), the leading social investment platform, today announced its third quarter 2021 interim financial results.

• Financial highlights for the quarter ended September 30, 2021:
• Total commissions of $222 million, up 66% compared with Q3 2020;
• Net trading income of $176 million, up 56% compared with Q3 2020;
• 1.6 million new registered users, up 8% compared with Q3 2020 with total registered users of 24.8 million as of September 30, 2021;
• 2.14 million funded accounts as of September 30, 2021, up 152% compared with September 30, 2020;
• Assets under administration (AUA) of $10.6 billion as of September 30, 2021, up 13% compared with June 30, 2021

Yoni Assia, CEO and Co-founder of eToro, commented: “As we approach the close of 2021, there is a growing number of retail investors around the world actively engaging with capital and crypto markets. Our users are investing in the companies they believe in and those they engage with. With market prices reaching all time highs, we are seeing more widespread adoption of eToro’s platform and we expect retail participation to continue to grow as more people appreciate the benefits of taking control of their finances.”

Q3 2021 financial summary:

For the third quarter of 2021, total commissions were $222 million, up 66% versus Q3 2020, driven by strong trading revenue, higher interest income and higher other income. Net trading income was $176 million, up 56% versus Q3 2020, driven by strong trading across a diverse range of cryptoassets. Total operating expenses excluding stock-based compensation and merger-related expenses were $203 million, up 94% year-over-year, driven by higher marketing expenses and investments to scale and support our fast-growing business.

Net income was a loss of $98 million, primarily due to a non-cash charge of $60 million in stock-based compensation for eToro employees and $11 million of transaction costs related to the business combination with FTCV. Adjusted EBITDA for the third quarter of 2021 was negative $25 million, largely driven by the Company’s significant investments in growth initiatives, including marketing.

Assets under administration were $10.6 billion as of September 30, 2021, an increase of $1.2 billion from June 30, 2021, driven by both user deposits and asset price appreciation.

Shalom Berkovitz, CFO and Deputy CEO said: “The third quarter of 2021 saw lower levels of volatility and trading activity following the highs of H1, as we had anticipated, though activity remained significantly above levels seen in 2020. To date in the fourth quarter, we’ve seen a strong uptick in activity, particularly in cryptoassets.