Did eToro just open the IPO window for all tech companies, especially classic enterprise SaaS? In our opinion, not really. Below is why.
They’re solidly B2C. “eToro was founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. As of December 31, 2024, we had approximately 3.5 million Funded Accounts across our global footprint of 75 countries. On our platform, users can trade equities, commodities, currencies and cryptoassets, traded as the underlying asset or a derivative.”
Their revenue model is very transactional. “We generate revenue through a multifaceted model consisting of (1) trading income, (2) interest income, (3) money management fees and (4) other value-added products and services. Total Commission was $931 million, $639 million and $632 million for the years ended December 31, 2024, 2023 and 2022, respectively.”
They’re growing fast and profitable. Whether you look at net income or EBITDA, the business is profitable and that profitability is growing far faster than any SaaS company we’ve seen IPO.
Just the fact that there has been another tech IPO since CoreWeave is a wonderful thing. But we don’t believe this opens the window to classic B2B SaaS companies that are still burning and have more modest growth. To do that, we believe we need to see an IPO of a true B2B SaaS company that isn’t a pure AI play, in our opinion.
Thank you for your readership. See more blogs and SaaS data at blossomstreetventures.com. Email the author at sammy@blossomstreetventures.com.
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