Plus500 beats expectations with strong revenue growth and customer gains By Investing.com
Investing.com — Plus500 (LON: ) had a strong year in 2024, with higher revenue and more customers leading to results that beat market expectations.
The fintech company’s annual revenue reached $768 million, an increase of 6% compared to the previous year.
The figure was ahead of consensus forecasts and maintained the momentum seen in the second and third quarters, despite a typically quieter fourth quarter impacted by low market volatility and seasonal holidays.
A key driver of the revenue growth was Plus500’s expanded marketing efforts, which attracted 36,000 new customers in the fourth quarter alone.
This intake was 50% above the company’s normal quarterly business rate, bringing the annual total to about 118,000 new customers — a 29% increase compared to the previous year and the highest level since the pandemic.
Additional investment in onboarding these clients is expected to drive future trading activity, with a large contribution likely from the US market.
Despite 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 without the incremental $20 million in costs incurred during the fourth quarter, EBITDA Plus500 growth could have reached 6% year-over-year.
This reflects the efficiency of the company’s investments and its ability to maintain profitability as it pursues growth.
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—well above the $500 million management deems necessary to operate—underscore its financial resilience and ability to continue rewarding investors.
In addition, the company was licensed by the UAE Securities and Commodities Authority, enabling it to offer a wider range of financial products, including OTC trading, equity trading and futures and options trading across the UAE.
This complements its existing Dubai Financial Services Authority license and enables expanded marketing efforts in the region.
In addition, Plus500’s new status as a clearing member of ICE Clear US positions the company to offer more comprehensive services to institutional clients.
This reduces third-party costs and allows Plus500 to act as a futures commission trader on another major international exchange, in addition to Eurex and CME.
Investments in customer acquisition, geographic expansion and institutional offerings are likely to yield benefits going forward, according to Jefferies.
