eToro Group Ltd shares fell on Tuesday morning as marketing and growth investments hit its profits during its first quarter as a publicly traded company.
The company's income fell to $60 million from $64 million in the year-ago period, attributed to increased investment in marketing and growth.
Earnings per share were $0.69, above the $0.60 consensus but down from $0.76 in the year-ago quarter.
Revenue increased to $3.76 billion from $3.38 billion in the year-ago quarter.
Net contribution increased by 8% to 217 million, driven by increased trading activity, above estimates of $214 million.
“Our results show strong business performance for Q1 with an increase in net contribution driven by increased trading activity and our continued focus on sustainable, profitable growth,” eToro chief financial officer Meron Shani said in a statement. “In the first quarter, in response to the market environment, we increased investment in marketing and growth.”
As of May 31, the company said it had 3.61 million funded accounts and $16.9 billion in assets under administration.
This is up from 3.58 million funded accounts and assets under administration of $14.8 billion at the end of Q1.
Shares of eToro fell 12% to $67 late morning on Tuesday.