Total commissions of $362 million up 125% year
on year
eToro Group Ltd (“eToro”), a multi-asset investment platform
that empowers people to grow their knowledge and wealth as part of
a global community of successful investors, today announced its
second quarter 2021 interim financial results.
Financial highlights for the quarter ended June 30,
2021:
- 2.6 million new registered users, up 121% compared to Q2
2020;
- total commissions of $362 million, up 125% compared with
Q2 2020;
- net trading income of $291 million, up 136% compared
with Q2 2020;
- as of 30 June 2021 assets under administration were $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.”
Business highlights:
- Crypto investing: eToro added 10 new cryptoassets in recent
months including Dogecoin and Shiba Inu. eToro has also expanded
its holistic crypto offering with the launch of ETH 2.0
staking.
- Financial education: the newly launched eToro Academy is an
education hub providing users of all levels of investing experience
with free resources to improve their understanding of financial
markets. eToro understands that people learn in different ways so
the eToro Academy offers a variety of resources including written
guides, videos, webinars and podcasts, as well as in-person and
online training courses.
- Sponsorship: the sense of community amongst sports fans is
closely aligned with eToro's social features and eToro has
continued to expand its sports sponsorship. It is proud to partner
with more than 25 football teams including clubs from the English
Premier League and German Bundesliga.
eToro’s Americas business accounted for 12% of funded accounts
at the end of Q2 2021 up from 6% at the end of Q2 2020. eToro
Americas consists of the U.S. and Latin America. eToro’s offering
in the U.S. launched in 2019 and is currently limited to crypto and
copy trading. It has grown considerably over the past year and
eToro is excited to expand its product range with the launch of
stocks later this year.
Cryptoassets drove total commissions in the second quarter of
2021 reflecting strong interest from retail investors in crypto
markets. Interest was diversified across the cryptos offered by
eToro with the highest trading volumes in BTC, XRP, ETH, ADA and
DOGE. eToro has seen a pattern over time, with increased trading
activity in a particular asset class or market influencing eToro’s
total commission in certain quarters or years. Looking at Q2 2020
to Q2 2021, unprecedented COVID induced market volatility, oil
going negative for the first time in history, and crypto
reawakening from its hibernation to reach all time highs, all
impacted investor behavior. The diversity of eToro’s product
offering and its global footprint support sustainable long-term
growth in eToro's total commissions across different market
conditions.
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 said: “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’s platform provides retail investors with the opportunity
for social collaboration and access to multiple different financial
products from commission-free fractional shares and ETFs through to
commodities and cryptoassets. eToro also offers users the
opportunity to copy other investors with its patented CopyTrader™
offering. As a result of its existing global footprint and the
breadth of its product offering eToro is uniquely positioned to
generate sustainable growth.
eToro’s latest Investor Presentation can be viewed on eToro’s
Investor Relations page.
Notes to editors
* Forecast refers to the information shared by eToro in
its Investor Presentation in March 2021.
About eToro
eToro is a multi-asset investment platform that empowers people
to grow their knowledge and wealth as part of a global community of
successful investors. eToro was founded in 2007 with the vision of
opening up the global markets so that everyone can trade and invest
in a simple and transparent way. Today, eToro is a global community
of more than 23 million registered users who share their investment
strategies; and anyone can follow the approaches of those who have
been the most successful. Due to the simplicity of the platform
users can easily buy, hold and sell assets, monitor their portfolio
in real time, and transact whenever they want.
https://www.etoro.com/
About FinTech Acquisition Corp. V
FinTech Acquisition Corp. V is a special purpose acquisition
company led by Betsy Z. Cohen as Chairman of the Board, Daniel G.
Cohen, as Chief Executive Officer and James J. McEntee, III as
President formed for the purpose of entering into a merger, capital
stock exchange, asset acquisition, stock purchase, reorganization
or similar business combination with one or more businesses, with a
focus on the financial technology industry. The company raised
$250,000,000 in its initial public offering in December 2020 and is
listed on the NASDAQ under the symbol “FTCV”.
Cautionary statement regarding forward-looking
statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws with respect to
the proposed business combination between FinTech Acquisition Corp.
V (“Fintech V”) and eToro Group Ltd., and the business and
operations of eToro. Forward-looking statements may be identified
by the use of the words such as “ estimate,” “plan,” “project,”
“forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,”
“strategy,” “future,” “opportunity,” “may,” “target,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
or similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements as to the expected timing, completion and effects of the
proposed business combination, eToro’s present and future plans for
its business and operations and eToro’s expectations as to market
results and conditions; are based on various assumptions, whether
or not identified in this press release, and on the current
expectations of eToro’s and FinTech V’s management; are not
predictions of actual performance; and are subject to risks and
uncertainties. These forward-looking statements are subject to a
number of risks and uncertainties, including but not limited to:
the risk that the proposed business combination may not be
completed in a timely manner or at all; the failure to satisfy the
conditions to the consummation of the proposed business
combination; the occurrence of any event, change or other
circumstance that could give rise to the termination of the
proposed merger agreement; the amount of redemption requests made
by FinTech V’s public stockholders; the effect of the announcement
or pendency of the proposed business combination on eToro’s
business; risks that the proposed business combination disrupts
current plans and operations of eToro; potential difficulties in
retaining eToro customers and employees; eToro’s estimates of its
financial performance; changes in general economic or political
conditions; changes in the markets in which the eToro competes;
slowdowns in securities trading or shifting demand for security
trading product; the impact of natural disasters or health
epidemics, including the ongoing COVID-19 pandemic; legislative or
regulatory changes; the evolving digital asset market, including
the regulation thereof; competition; conditions related to eToro’s
operations in Israel; risks related to data security and privacy;
changes to accounting principles and guidelines; potential
litigation relating to the proposed business combination; the
ability to maintain the listing of eToro’s securities on the Nasdaq
Capital Market; the fact that the price of eToro’s securities may
be volatile; the ability to implement business plans, and other
expectations after the completion of the proposed business
combination; and unexpected costs or expenses. The foregoing list
of factors is not exhaustive. You should carefully consider the
foregoing factors and the other risks and uncertainties described
in the “Risk Factors” section of FinTech V’s registration statement
on Form S-1 (File No. 333-249646) (the “Form S-1”), eToro’s
registration statement on Form F-4 (when available) and other
documents if and when filed by eToro or FinTech V from time to time
with the SEC. If any of these risks materialize or our assumptions
prove incorrect, actual events and results could differ materially
from those contained in the forward-looking statements. There may
be additional risks that neither eToro nor FinTech V presently know
or that eToro and FinTech V currently believe are immaterial that
could also cause actual events and results to differ. In addition,
forward-looking statements reflect eToro’s and FinTech V’s
expectations, plans or forecasts of future events and views as of
the date of this press release. eToro and FinTech V anticipate that
subsequent events and developments will cause eToro’s and FinTech
V’s assessments to change. While eToro and FinTech V may elect to
update these forward-looking statements at some point in the
future, eToro and FinTech V specifically disclaim any obligation to
do so, unless required by applicable law.
No offer or solicitation
This press release is not a proxy statement or solicitation or a
proxy, consent or authorization with respect to any securities or
in respect of the proposed business combination and shall not
constitute an offer to sell or exchange, or a solicitation of an
offer to buy or exchange, the securities of eToro, FinTech V or the
combined company, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation, sale or exchange
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
Additional information about the business combination and
where to find it
As permitted by the Jumpstart Our Business Startups Act of 2012,
or JOBS Act, the Company has confidentially submitted a draft
registration statement on Form F-4 to the SEC, which includes a
preliminary proxy statement/prospectus that is both the proxy
statement to be distributed to FinTech V stockholders in connection
with the solicitation of proxies for the vote by the stockholders
on the merger and the prospectus to be delivered by FinTech V in
connection with the distribution of its securities to such holders.
After the registration statement has been filed and declared
effective, FinTech V will mail a definitive proxy statement /
prospectus to its stockholders as of the record date established
for voting on the proposed business combination and the other
proposals regarding the proposed business combination set forth in
the proxy statement. eToro or FinTech V may also file other
documents with the SEC regarding the proposed business combination.
Before making any voting or investment decision, investors and
security holders are urged to carefully read the entire
registration statement and proxy statement / prospectus and any
other relevant documents filed with the SEC, and the definitive
versions thereof (when they become available and including all
amendments and supplements thereto).
Investors and security holders will be able to obtain free
copies of the registration statement, the proxy
statement/prospectus and all other relevant documents filed or that
will be filed with the SEC by eToro or FinTech V through the
website maintained by the SEC at www.sec.gov.
Participants in the solicitation
eToro and FinTech V and their respective directors and executive
officers may be deemed to be participants in the solicitation of
proxies from stockholders of FinTech V in connection with the
proposed business combination under the rules of the SEC. FinTech
V’s stockholders, eToro’s shareholders and other interested persons
may obtain, without charge, more detailed information regarding the
names, affiliations and interests of directors and executive
officers of eToro and FinTech V in FinTech V’s Annual Report on
Form 10-K for the year ended December 31, 2020 filed with the SEC
on March 30, 2021 or eToro’s Form F-4 (when available), as
applicable, as well as their other filings with the SEC. Other
information regarding persons who may, under the rules of the SEC,
be deemed the participants in the proxy solicitation of FinTech V’s
stockholders in connection with the proposed business combination
and a description of their direct and indirect interests, by
security holdings or otherwise, will be included in the preliminary
proxy statement / prospectus and will be contained in other
relevant materials to be filed with the SEC regarding the proposed
business combination (if and when they become available). You may
obtain free copies of these documents at the SEC’s website at
www.sec.gov.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210825005373/en/
Public relations PR@etoro.com Investor relations
investors@etoro.com
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