Total commissions of $222 million, up 66%
versus Q3 2020
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.
“We continue to see strong engagement and user growth on the
eToro platform, as evidenced by the addition of more than 160,000
funded accounts in the third quarter of 2021. We remain excited
about eToro’s long-term growth opportunities given the strong
secular trend towards self-directed investing and the growing
participation of retail investors in global markets, as well as our
differentiated offerings. eToro’s focus continues to be on growth
and therefore, in periods where we generate revenue in excess of
our original forecast,1 we will look to reinvest these funds into
marketing channels and the necessary infrastructure to scale and
support our fast-growing business.”
Regarding the proposed merger with FinTech Acquisition Corp. V
(NASDAQ: FTCV), the company continues to target a closing in the
fourth quarter of 2021.
Business highlights:
- A new look for eToro: the Company launched a more
personalized, friction-free user experience across desktop and
mobile interfaces designed to boost user engagement and make asset
discovery and eToro’s social elements even more integrated and
intuitive.
- European growth: eToro opened an office in Frankfurt,
Germany, an example of the Company’s commitment to growing its
market share in strategic European markets.
- Bolstered U.S. leadership team: Lule Demmissie joined as
CEO of eToro’s U.S. business. Lule brings with her more than 20
years of experience in executive roles across the brokerage and
wealth management industries – most recently as President of Ally
Invest.
- Enhanced Board oversight: eToro announced the
appointment of Michael Ptasznik to its Board of Directors,
effective upon the close of the merger. Michael, who recently
retired as Chief Financial Officer and EVP of Nasdaq, Inc., will
also join eToro’s Audit and Risk Committee.
- Supporting female investors: eToro launched
InvestWithHer, a new investor community designed for women by women
with the goal of empowering female investors by building a platform
for networking and the strengthening of financial and related
skills.
eToro’s latest Investor Presentations can be viewed on eToro’s
Investor Relations page.
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 24 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, 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 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 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 (File No.
333-259189) (the “Form F-4”) 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
eToro submitted its Form F-4 to the SEC on August 31, 2021, and
filed amendments on September 20, 2021, October 5, 2021 and
November 3, 2021, which include 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 Quarterly Report on
Form 10-Q for the quarter ended September 30, 2021, filed with the
SEC on November 10, 2021, 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, 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.
Trademarks and Trade Names
eToro and Fintech V own or have rights to various trademarks,
service marks and trade names that they use in connection with the
operation of their respective businesses. This press release also
contains trademarks, service marks and trade names of third
parties, which are the property of their respective owners. The use
or display of third parties’ trademarks, service marks, trade names
or products in this press release is not intended to, and does not
imply, a relationship with eToro or Fintech V, or an endorsement or
sponsorship by or of eToro or Fintech V. Solely for convenience,
the trademarks, service marks and trade names referred to in this
press release may appear with the ®, ™ or SM symbols, but such
references are not intended to indicate, in any way, that eToro or
Fintech V will not assert, to the fullest extent under applicable
law, their rights or the right of the applicable licensor to these
trademarks, service marks and trade names.
1 Original forecast as outlined in our March 16, 2021 Investor
Presentation and as filed with the SEC
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211112005647/en/
Public relations PR@etoro.com Investor relations
investors@etoro.com
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