ETORO (ETOR) third-quarter results top crypto trading strength estimates, KBW says
Etoro’s (ETOR) Third-Quarter Earnings Expectations were raised as stronger crypto trading activity lifted results, investment bank KBW said.
Net income rose 48% from a year earlier to $57 million, according to the company’s GAAP results. Adjusted EBITDA grew 43% to $78 million, largely due to increased net contribution and cost management, the company said Monday.
Adjusted EBITDA of $78 million exceeded KBW’s $70 million estimate and the $70.6 million consensus, while GAAP net of $57 million was also ahead of forecasts, the bank said.
The company’s shares rose nearly 3.2% in early trading before falling. They were recently 0.1% lower at $34.83.
KBW analysts said the $0.07 per-share EBITDA beat came from a $0.06 boost in total net contribution and a $0.01 reduction in operating expenses.
Crypto Trading and Net Interest income topped expectations by $0.16 and $0.07 respectively, the report noted, offsetting a $0.17 shortfall in equities, commodities and currencies.
Etoro’s total net contribution rose to $215 million, above KBW’s $208 million forecast, driven by $56 million in crypto trading versus expectations of $36.3 million.
The company ended the quarter with 3.73 million funded accounts, up from 3.63 million the prior quarter and slightly above KBW’s 3.7 million estimate.
Assets under administration climbed to $20.8 billion from $17.5 billion. Etoro also unveiled a $150 million share repurchase program, including plans for a $50 million accelerated buyback, the report added.
Read more: Crypto trading drove more than 90% of Etoro’s second quarter revenue
