Investing.com — Plus500 ( LON: ) had a strong year in 2024, with higher earnings and more customers driving results that exceeded market expectations.
The fintech company's annual revenue reached $768 million, marking a 6% year-over-year increase.
This number was ahead of consensus estimates and maintained the strength seen in the second and third quarters, although the fourth quarter is usually quiet due to market volatility and seasonal holidays.
The main driver of the increase in revenue was Plus500's increased marketing efforts, which attracted 36,000 new customers in the fourth quarter alone.
This was 50% more than the company's usual level of traffic, which brought the annual total number of new customers to about 118,000 – an increase of 29% compared to last year and the highest level since the pandemic.
Additional investment from these customers is expected to support future commercial activity, with a significant contribution likely to come from the US market.
Excluding increased spending on marketing, geographic expansion, and customer onboarding, the company reported EBITDA of $342 million, slightly above 2023 levels and 1% ahead of consensus.
Jefferies notes that despite a $20 million increase in expenses incurred in the fourth quarter, Plus500's EBITDA growth could have reached 6% year-on-year.
This shows the efficiency of the company's investments and its ability to maintain profitability while trying to grow.
Plus500's cash position also remained strong, ending the year with $900 million on hand. This was achieved despite returning $360 million to shareholders in 2024, up from $350 million in 2023.
The company's cash reserves—more than $500 million deemed necessary for operations—underline its financial strength and ability to continue rewarding investors.
In addition, the company received a license from the UAE's Securities and Commodities Authority, enabling it to offer a wide range of financial products, including over-the-counter trading, shares, and futures and options trading in the UAE.
This is in line with the existing license from the Dubai Financial Services Authority and allows for increased marketing efforts in the region.
In addition, Plus500's new status as a clear member of ICE Clear US positions the company to provide a comprehensive range of services to institutional clients.
This reduces third-party costs and allows Plus500 to act as a Futures Commission Broker on another major international exchange, alongside Eurex and CME.
Investments in customer acquisition, geographic expansion, and institutionalization will bear fruit in the future, according to Jefferies.