According to investment bank KBW, ETOR’s third-quarter profit exceeded expectations as increased crypto trading activity boosted performance.
According to the company’s GAAP results, net income increased 48% year over year to $57 million. Adjusted EBITDA increased 43% to $78 million, the company announced Monday, primarily due to higher net contribution and disciplined cost management.
Adjusted EBITDA of $78 million exceeded KBW’s expectations of $70 million and consensus of $70.6 million, and GAAP net income of $57 million also exceeded expectations, the bank said.
The company’s shares rose as much as 3.2% in early trading, but then fell back. The stock was last down 0.1% at $34.83.
KBW analysts said the significant $0.07 per share EBITDA upside was due to a $0.06 increase in total net contribution and a $0.01 reduction in operating expenses.
The report said crypto trading revenue and net interest income exceeded expectations by $0.16 and $0.07, respectively, offsetting a $0.17 shortfall in stocks, commodities and currencies.
EToro’s total net contribution increased to $215 million, exceeding KBW’s estimate of $208 million. This was due to $56 million in crypto trading compared to expectations of $36.3 million.
The company ended the quarter with 3.73 million accounts, up from 3.63 million in the previous quarter and slightly ahead of KBW’s estimate of 3.7 million.
Assets under management increased from $17.5 billion to $20.8 billion. EToro also announced a $150 million share repurchase program, including a $50 million accelerated repurchase plan, the report added.
read more: Cryptocurrency trading accounted for over 90% of eToro’s second quarter revenue
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