EToro (ETOR)’s third-quarter earnings beat expectations as increased cryptocurrency trading activity boosted results, investment bank KBW said.
Net income increased 48% from a year ago to $57 million, according to the company’s GAAP results. Adjusted Ebitda grew 43% to $78 million, largely due to higher net contribution and disciplined cost management, the company said Monday.
Adjusted Ebitda of $78 million beat KBW’s estimate of $70 million and consensus of $70.6 million, while GAAP net income of $57 million also beat forecasts, the bank said.
The company’s shares rose as much as 3.2% in early trading before retreating. They were recently down 0.1% to $34.83.
KBW analysts said the $0.07 per share increase in Ebitda was due to a $0.06 increase in total net contribution and a $0.01 reduction in operating expenses.
Cryptocurrency trading income and net interest income beat expectations by $0.16 and $0.07 respectively, according to the report, offsetting a $0.17 shortfall in stocks, commodities and currencies.
EToro’s total net contribution rose to $215 million, above KBW’s $208 million forecast, driven by $56 million in cryptocurrency trading versus expectations of $36.3 million.
The company ended the quarter with 3.73 million funded accounts, up from 3.63 million in the previous quarter and slightly above KBW’s estimate of 3.7 million.
Assets under management rose to $20.8 billion from $17.5 billion. EToro also unveiled a share buyback program worth $150 million, including plans for an accelerated buyback of $50 million, the report added.
Read more: Cryptocurrency trading generated more than 90% of eToro’s second quarter revenue
