Remy Blaire is joined by Yoni Assia, the CEO of eToro, to discuss the company’s recent third-quarter earnings and the broader trends in the financial markets. The segment opens with Remy highlighting eToro’s impressive performance, reporting a 28% growth in revenue year-over-year and nearly 40% growth in net income. Yoni shares that eToro generated over $800 million in revenue and more than $300 million in net income over the past year, attributing this success to the rise of retail investors, particularly among younger generations who are increasingly engaging in trading across various asset classes, including stocks, cryptocurrencies, and precious metals.
As the conversation progresses, Yoni emphasizes the significance of the current administration’s favorable stance towards blockchain technology and digital assets. He reflects on eToro’s long history in the crypto space, having started buying Bitcoin at $5 and launching it on their platform when it was priced at $100 in 2013. Yoni expresses excitement about the convergence of crypto markets and capital markets, noting that the SEC Chair is advocating for moving capital markets on-chain, a vision eToro has been championing for over a decade.
Remy and Yoni also discuss the shift towards 24/7 trading, with eToro recently implementing 24-5 trading for many stocks, resulting in 30% of their trading volume occurring outside of regular market hours. Yoni highlights the demand from investors for trading experiences that mirror the accessibility of crypto markets.
The segment further explores the role of artificial intelligence in trading, with Yoni explaining how eToro has introduced APIs that allow customers to utilize AI for developing trading strategies. This innovation is particularly appealing to younger investors who are interested in social investing and technology-driven solutions.
In addition to discussing eToro’s growth and technological advancements, Yoni addresses the company’s strategy for maintaining competitiveness in the market. He underscores the importance of customer satisfaction and education, as well as the continuous introduction of new products. With a strong balance sheet post-IPO, eToro is actively seeking acquisition opportunities to enhance its offerings.
Finally, Remy and Yoni touch on the emerging field of prediction markets. Yoni reveals that eToro is exploring ways to connect its non-custodial wallet to enable customers to participate in prediction markets using cryptocurrencies, indicating a commitment to innovation and expansion in the evolving financial landscape.