Futu Holdings’ Earnings Call Highlights Robust Growth

Futu Holdings ((FUTU)) has held its Q1 earnings call. Read on for the main highlights of the call.

Futu Holdings’ recent earnings call showcased a strong performance, marked by significant growth in funded accounts, revenue, and client assets. The company’s strategic initiatives and favorable market conditions have driven this growth, despite challenges like increased operating expenses and interest rate impacts. Overall, Futu Holdings exudes confidence in achieving its annual targets, reflecting robust growth potential.

Record New Funded Accounts

Futu Holdings reported a remarkable increase in new funded accounts, adding approximately 262,000 in Q1 2025. This represents a 48% increase year-over-year and a 22% increase quarter-over-quarter, bringing the total funded accounts to 2.7 million, up 42% from the previous year.

Strong Revenue Growth

The company achieved a total revenue of HKD 4.7 billion for Q1 2025, marking an impressive 81% increase from HKD 2.6 billion in Q1 2024. Notably, brokerage commission and handling charge income surged by 113% year-over-year.

Total Client Assets Surge

Futu Holdings experienced a significant rise in total client assets, reaching HKD 830 billion. This marks a 60% increase year-over-year and a 12% increase quarter-over-quarter, driven by record net asset inflow.

Introduction of Futubull AI

The launch of Futubull AI, a smart investment assistant, was a highlight of the earnings call. With a satisfaction rate of around 90%, the company plans to expand this service to international markets in Q2.

Increased Trading Volume

Total trading volume for Q1 2025 reached HKD 3.22 trillion, up 140% year-over-year. U.S. equity trading also saw an 8% sequential rise, contributing to this growth.

Wealth Management Growth

Wealth management plan assets grew significantly to HKD 139.2 billion, reflecting a 118% year-over-year increase and a 26% quarter-over-quarter rise.

Interest Rate Impact on Income

The decline in HIBOR may impact net interest income; however, Futu Holdings expects this to be mitigated by increased trading activities.

Increased Operating Expenses

Operating expenses rose by 36% year-over-year, with notable increases in R&D, selling and marketing, and G&A expenses.

Challenges in Crypto Trading

The company faced challenges in crypto trading due to a pullback in crypto prices, affecting investor enthusiasm. Nonetheless, Futu Holdings remains optimistic about the long-term potential of this sector.

Forward-Looking Guidance

Futu Holdings’ forward-looking guidance remains optimistic, with the company aligning its growth with an annual target of 800,000 net new funded accounts. The surge in total client assets and trading volume underscores their strategic growth and market expansion plans for 2025. The introduction of Futubull AI is expected to further enhance their market position.

In conclusion, Futu Holdings’ earnings call reflects a positive sentiment with robust growth across various metrics. The company is well-positioned to achieve its annual targets, driven by strategic initiatives and favorable market conditions. Despite some challenges, Futu Holdings remains confident in its growth trajectory for 2025.