eToro, a “social investing” platform that provides access to both crypto and more traditional securities, has published information on performance during 2022.
Not too long ago, eToro raised $250 million at a $3.5 billion valuation. The funding was an “Advance Investment Agreement” (AIA) which eToro entered into in February 2021 as part of its proposed SPAC transaction that did not complete.
eToro said that during the year it generated $631 million in commission. The revenue was distributed as follows: 48% equities, 27% commodities, 19% cryptoassets, and 6% currencies.
As of December 2022, the platform reports 2.8 million funded accounts.
eToro operates globally and claims over $5.8 billion in assets under administration – mostly in Europe and the UK.
What eToro did not share is top and bottom line performance so one must assume it continues to lose money.
Yoni Assiam eToro CEO and co-founder, commented:
“As Q1 progresses, I’m hopeful that Yale Hirsch’s market theory ‘as goes January, so goes the year’ holds true. We’ve seen a positive start to the year with markets reacting favourably to ‘less bad’ news and retail trading hitting an all time high. Year to date, we have seen an improvement in total commissions and profitability compared with the previous quarter with higher engagement and trading activity from our users.”
Meron Shani, eToro CFO, said:
“At eToro we need no reminder that markets are cyclical. The diversified nature of our multi-asset product offering ensured that commissions from equities and commodities partially offset the decrease in commissions from cryptoassets in 2022. It’s also worth noting that we were not impacted by the liquidity concerns which plagued many in the crypto industry. Our underlying business is profitable and our balance sheet is strong. Total commissions for 2022 were $631 million, down versus our stellar performance in 2021, yet up 5% versus 2020. We continued to grow our user base despite more negative market sentiment and a reduction in our marketing spend. We ended the year with over 2.8 million funded accounts (up 17% YoY).”
eToro highlighted some specific events including:
- Continued to partner with regulators around the world in the evolution of the digital assets ecosystem securing registrations in France, Italy, and most recently a license in New York. Secured an in principle approval to operate as a broker in Abu Dhabi.
- launched an NFT portfolio manager, which now allows users to track their NFT collections.
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