eToro has released its interim financial results for the first quarter of 2021.
The highlight is the 141% increase in total commissions compared to Q1 2020, which came in at $347 million in Q1 2021.
However, new users registered during the quarter grew even more, by 214% to 3.1 million.
Net income was up 72% to $269 million in Q1 2020, while assets under management totalled $8.4 billion as of 31 March 2021.
According to co-founder and CEO, Yoni Assia, one of the key points of 2020 was the increased participation of retail users in capital markets due to low interest rates, coupled with increased digital adoption. This trend accelerated further in 2021, reflected in the positive first quarter results.
“As a multi-asset investment platform, eToro offers clients a choice of which asset classes to invest in from commission free stocks through to crypto, and a choice in how to invest. You can trade directly yourself, copy another investor or invest in any of eToro’s portfolios. eToro is built around social collaboration and financial education and has created a thriving community where users can connect, share, and learn.
eToro’s mission is to empower people to grow their knowledge and wealth and we see our platform as a bridge between the old world of investing and the new. As we grow our presence worldwide and further diversify our product offering, eToro is well positioned to capture a large share of a growing global market”.
In 2021 eToro also announced that the shares will be tradable.
CFO and Deputy CEO, Shalom Berkovitz, added:
“eToro’s focus is on growth rather than short term profitability. We are therefore investing heavily in scaling our business and income is being reinvested in our marketing channels and in the continued expansion of our product offering and global footprint. Year-over-year comparisons in net income and Adjusted EBITDA were therefore impacted by stepped up marketing spend, which has a high return on investment. Adjusted EBITDA was $30 million and net income was $5 million, down 57% and 91% compared with Q1 2020 respectively”.
eToro and cryptocurrencies
Certainly, eToro tools related to the world of cryptocurrencies also played an important role in the growth of the platform.
In this market, eToro has been expanding a lot in the last period, also supporting more “niche” cryptocurrencies and tokens such as Matic, Algorand and Brave Attention Token, which were added just a few days ago.
Although on eToro there is no direct trading on cryptocurrencies, this remains an easy tool for managing them especially for newcomers to the sector and those who still do not feel able to handle technical platforms such as crypto exchanges or make direct custody of their cryptocurrencies. asset.
Having expanded its market to crypto may therefore have favored the growth of eToro, especially when we consider that crypto users are rapidly growing, as shown by a study by Crypto.com.