Plus500, a broker listed on the London Stock Exchange, has released its Q1 2023 financial results, reporting revenue of $207.9 million. While this represents a 64% increase from the previous quarter, it reflects a decline of over 23.2% compared to the same period last year. However, the company’s performance was in line with market expectations.
In the first three months of the year, Plus500’s EBITDA was $100.9 million, an increase of 116% from the previous quarter’s $46.7 million. However, this figure decreased by around 38% compared to Q1 2022. The EBITDA margin for the quarter was 49%, an improvement from the previous quarter’s 37%, but a drop from Q1 2022’s 60%.
Although customer metrics improved sequentially, the figures for Q1 2023 showed a significant slowdown year-over-year. The company acknowledged this in its report.
The Rising Metrics
During the first quarter of 2023, Plus500 saw a rise of 28,201 new customers, compared to 33,740 in Q1 2022 and 25,527 in Q4 2022. The platform currently has 137,053 active clients, which is an increase of 5 percent from the previous quarter, but a decrease of about 22.4 percent year-over-year.
The company’s average revenue per user was $1,517 in the latest quarter, reflecting a 57 percent improvement from the previous quarter, although it was slightly lower than the $1,534 reported in the previous year’s first quarter. On the other hand, the average user acquisition cost of $1,381 dropped quarterly and yearly, indicating a cost-effective approach by the company. Plus500 ended the quarter with over $950 million in cash balances, demonstrating a strong financial position.
David Zruia, CEO of Plus500, attributed the company’s strong Q1 2023 performance to its proprietary technology stack, which attracts and retains higher-value customers over the long term. He expressed confidence in the company’s ability to achieve sustainable growth and strong returns over the medium to long term, citing exciting strategic growth opportunities, particularly in the US futures market.
The company’s management remains optimistic about its future prospects, with the Plus500 board expecting to close the ongoing financial year in line with market expectations. Plus500 is looking to capitalize on strategic growth opportunities in the US futures market to accelerate its development as a global multi-asset fintech group with a highly valuable customer base and market-leading capabilities. The company plans to achieve this through further organic investments and targeted acquisitions, which it believes will result in sustainable growth and strong, consistent returns over the medium to long term. Overall, Plus500 appears to be in a good position to continue its growth trajectory while maintaining a strong financial position.