Global trading brokerage eToro recorded a 5.8 percent drop in revenue in 2022. Additionally, eToro completed a $250 million funding round at a valuation of $3.5 billion.
eToro, a leading global multi-asset social broker based in Israel, reported that revenue for the 12 months ended December 31, 2022, decreased by 47 percent from the previous year to $1.2 billion in 2021.
According to eToro financial results report, Assets under administration (AUA) in the 2022 fiscal year amounted to $ 5.8 billion, a decrease of around 54% compared to the previous year, reaching $ 10.7 billion.
Other reports on total trading commissions of $631 million decreased over the previous year but were up 5% over 2020. Commissions earned from trading crypto assets accounted for 19%, nearly two-thirds of 2021.
However, Despite the financial condition, the Israeli broker acquired more customers on December 31, 2022, with 31.4 million users and 2.8 million funded accounts, than those 27 million users and 2.4 million funded accounts in 2021.
eToro Continuous Growth
During 2022, eToro earned a notable highlight after completing a $250 million funding round at a valuation of $3.5 billion. The brokerage abandoned plans to go public even after lowering its SPAC valuation to $8.8 billion from the prematurely planned $10.4 billion. These conditions were affected due to uncertainties and trade challenges of the SPAC.
In addition, social investment initiatives are reportedly in talks to raise around $1 billion in private funding rounds but are only worth $5 billion to $6 billion.
"Our 2023-2025 strategy is to expand our business in key markets by focusing on increasing profitability through increasing volatility and controlling costs," commented Yoni Assia, CEO and co-founder of eToro.