Fourth quarter 2021 total commissions of $304
million, up 85% versus Q4 2020
Full-year 2021 total commissions of $1.23
billion, up 105% versus full-year 2020
eToro Group Ltd (“eToro” or the “Company”), the leading social
investing network, today announced its fourth quarter 2021 and
full-year financial results1.
Financial highlights for the quarter ended December 31,
2021:
- Total commissions of $304 million, up 85% compared with
Q4 2020;
- Net trading income of $237 million, up 50% compared with
Q4 2020;
- 2.1 million new registered users, up 31% compared with
Q4 2020 with 26.9 million total registered
users as of December 31, 2021;
- 2.4 million funded accounts as of December 31, 2021, up
137% compared with December 31, 2020; and
- Assets under administration (AUA) of $10.7
billion at December 31, 2021.
Yoni Assia, CEO and Co-founder of eToro, commented:
“eToro closed 2021 with a strong fourth quarter, generating over
$300 million in total commissions. We are extremely proud of our
accomplishments in 2021, some of which include growing the eToro
network by more than 9 million registered users while more than
doubling our funded accounts, adding over 900 Popular Investors and
10 new Smart Portfolios to our investment offering, hiring Lule
Demmissie as our U.S. CEO, launching equities investing in the
U.S., launching eToro Money in the U.K., and redesigning the eToro
application to significantly improve the user experience. The
retail investment landscape continues to evolve at a rapid pace,
and we believe eToro is uniquely positioned to provide users with a
simple and transparent way to access a broad array of global
financial markets. We are very excited for what lies ahead for
eToro and our users in the coming years.”
Q4 2021 financial summary:
For the fourth quarter of 2021, total commissions were $304
million, up 85% versus Q4 2020, driven by strong commissions from
trading activity, higher interest income and higher other charges.
Net trading income was $237 million, up 50% versus Q4 2020, driven
by strong growth in funded accounts and a rebound in trading
activity in cryptoassets.
Total operating expenses excluding stock-based compensation and
merger-related expenses were $263 million, up 68% year-over-year,
driven by higher marketing expenses and investments to support our
growth, including a significant increase in global headcount.
Total operating expenses included a non-cash charge of $63
million in stock-based compensation for eToro employees related to
the business combination with FinTech Acquisition Corp. V (Nasdaq:
FTCV). These expenses largely contributed to a net loss of $84
million in the quarter. Adjusted EBITDA for the fourth quarter of
2021 was negative $24 million, largely driven by the Company’s
significant investments in growth initiatives, including
marketing.
Assets under administration were $10.7 billion as of December
31, 2021, roughly flat versus September 30, 2021, as continued net
deposits were offset by broad market declines in crypto and equity
markets.
Shalom Berkovitz, CFO and Deputy CEO said: “We continued
to see attractive opportunities in the fourth quarter to invest in
marketing and customer acquisition, resulting in the addition of
nearly 300,000 net new funded accounts during the quarter. These
and other investments in eToro’s business were also helped by the
favorable revenue environment in 2021. While our business
performance is closely tied to market activity and profitability
can vary from quarter-to-quarter, we are confident in our ability
to execute on our growth plans by focusing on profitable customer
acquisition and retention which we expect to be accretive to
returns in the years ahead. Given our focus on balancing healthy
growth with profitability, we generated $14 million in EBITDA for
full-year 2021 despite the higher-than-expected investments.”
On December 30, 2021 eToro entered into an amendment agreement
with FinTech Acquisition Corp. V to, among other things, extend the
termination date of the merger agreement through June 30, 2022.
Additionally, eToro entered into amendments to certain subscription
agreements with certain PIPE investors accounting for $443 million
to, among other things, extend the termination date of the
subscription agreements through June 30, 2022. We continue to work
diligently with all parties to close the transaction as soon as
possible and are extremely excited about the future of our business
and this next phase of our company in the public markets.
Business highlights:
- Launched equities investing in the U.S.: During Q4 2021,
eToro rolled out equities investing to U.S. users, and is excited
to bring more of the full eToro experience into this strategically
important market. The Company looks forward to rolling out
additional products in the U.S. over the coming years and is
excited for what lies ahead in this market. More recently, eToro
began to scale marketing activities in the U.S. kicking off with a
30 second ad during the Super Bowl in February 2022 and will
continue to increase marketing activity in U.S. in the
near-term.
- eToro Money rolled out broadly in the U.K.: eToro
launched its Money program to all users in the U.K. eToro Money
seamlessly connects to a user’s eToro investment account allowing
the user to instantly deposit and withdraw funds and manage their
crypto and funds all in one place. This product provides all users
with access to a sort code and personal account number to enable
them to send and receive funds to the eToro platform and any U.K.
bank account. Additionally, U.K. Club members will have VISA debit
cards available to them free of charge. Payments is a very
important part of our roadmap as it creates less friction in the
customer payment experience and is likely to improve retention
rates over time. In 2022, we plan to expand eToro Money to our
users throughout Europe.
eToro’s latest Investor Presentations can be viewed on eToro’s
Investor Relations page.
About eToro
eToro is a social investing network 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 approximately 27 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, November
3, 2021, November 12, 2021, November 15, 2021 and February 25,
2022, 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 Annual Report on
Form 10-K for the year ended December 31, 2021, filed with the SEC
on February 18, 2022, 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 Financial results included herein for
both the fourth quarter 2021 and full-year 2021 are unaudited and
subject to change
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version on businesswire.com: https://www.businesswire.com/news/home/20220307005523/en/
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Investor relations investors@etoro.com
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