flatexDEGIRO (FTK) Q3 2024 earnings summary

Executive summary

• Achieved record results for the first nine months of 2024, with strong growth in both revenue and net income, driven by commission and interest income.

• Upgraded full-year 2024 revenue guidance to slightly above the original upper end, and reiterated net income guidance of up to +50% year-over-year.

• Successfully closed the BaFin special commissioner mandate after resolving major regulatory findings from 2022.

• Launched a share buyback program of up to EUR 50 million, with 14% already executed.

• Announced new product launches, including direct cryptocurrency trading and preparation for personal pension accounts in Germany.

Financial highlights

• Nine-month revenues increased by 21.6% year-over-year to EUR 353.4 million; Q3 revenues EUR 111.7 million, up 10.1%.

• Net income for 9M 2024 more than doubled to EUR 85.7 million (+111.1%), with a margin of 24.3%.

• EBITDA for the nine months reached EUR 152.1 million, up 72% year-over-year, with a margin of 43.1%.

• Assets under custody hit a record EUR 64.6 billion at September 2024, up 37% year-over-year and 24.8% since December 2023.

• Net cash inflows totaled EUR 4.98 billion in 9M 2024, up 27.4% year-over-year, with average monthly inflows over EUR 500 million.

Outlook and guidance

• Fiscal year 2024 revenue guidance upgraded to slightly above 15% year-over-year growth.

• Net income guidance reiterated at the upper end of 25%-50% growth year-over-year.

• Crypto trading to launch in Germany in Q4 2024, with expansion to other geographies in 2025.

• Personal pension accounts expected to be a 2026 topic, pending German government legislation.

• Management is confident of achieving a record year in 2024.