EToro (ETOR) third-quarter profits beat expectations as stronger crypto trading activity improved results, investment bank KBW said.
Net income increased 48% from a year earlier to $57 million, according to the company’s GAAP results. Adjusted Ebitda increased 43% to $78 million, largely due to increased net contribution and disciplined cost management, the company said Monday.
Adjusted Ebitda of $78 million beat KBW’s estimate of $70 million and the consensus of $70.6 million, while GAAP net income of $57 million was also above forecast, the bank said.
The company’s shares rose 3.2% in early trading before falling again. They were recently down 0.1% at $34.83.
KBW analysts said the $0.07 Ebitda per share exceedance came from a $0.06 increase in total net contribution and a $0.01 reduction in operating expenses.
Crypto trading revenue and net interest income beat expectations by $0.16 and $0.07 respectively, the report noted, offsetting a $0.17 deficit across stocks, commodities and currencies.
EToro’s total net contribution came in at $215 million, above KBW’s forecast of $208 million, 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 in the previous quarter and slightly above KBW’s estimate of 3.7 million.
Assets under administration increased from $17.5 billion to $20.8 billion. EToro also unveiled a $150 million share buyback program, including accelerated buyback plans of $50 million, the report added.
Learn more: Cryptocurrency trading generated more than 90% of eToro’s revenue in the second quarter
