Up Fintech Holding ((TIGR)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Up Fintech Holding was marked by a strong positive sentiment, driven by impressive growth in revenue, client assets, and net income. The company celebrated significant achievements in IPO underwriting and market expansion, despite facing challenges such as a slight decrease in cash equity take rate and higher customer acquisition costs in Hong Kong. Overall, the positive developments significantly overshadowed the negatives, painting a promising picture for the company’s future.
Record Revenue Growth
The company reported a remarkable total revenue of USD 139 million for the quarter, reflecting a 58.7% year-over-year increase and a 13.1% growth from the previous quarter. This substantial growth highlights the company’s robust financial performance and its ability to capitalize on market opportunities.
Significant Increase in Client Assets
Up Fintech Holding achieved a new record in total client assets, reaching USD 52.1 billion. This marks a 13.5% quarter-over-quarter and a 36.3% year-over-year increase, continuing an impressive streak of 11 consecutive quarters of growth.
Strong Net Income Growth
The company’s net income for the second quarter was USD 41.4 million, which is a 36.2% increase from the previous quarter and 16 times higher than the same quarter last year. This significant growth underscores the company’s successful financial strategies and operational efficiency.
Expansion in High-Quality Markets
Up Fintech Holding expanded its presence in high-quality markets by adding 39,800 new funded accounts, with Singapore and Hong Kong being the primary contributors. The total number of funded accounts reached 1,192,700, marking a 21.4% year-over-year increase.
IPO and ESOP Business Expansion
The company made notable strides in its IPO and ESOP business, underwriting 7 Hong Kong IPOs and 4 U.S. IPOs, including significant ones like Chagee. Additionally, the ESOP business added 30 new clients, representing a 15% year-over-year increase.
Slight Decrease in Cash Equity Take Rate
There was a slight decrease in the cash equity take rate, which dropped from 6.7 bps last quarter to 6.4 bps this quarter. This was attributed to a higher average price per share in the U.S. market.
High Customer Acquisition Cost in Hong Kong
The customer acquisition cost in Hong Kong was reported to be around USD 400, which is relatively higher than in other markets. However, the company noted a healthy payback period of two quarters, indicating a sustainable investment in client growth.
Forward-Looking Guidance
Looking ahead, Up Fintech Holding anticipates continued financial growth, with total revenue reaching a record USD 139 million, marking a 58.7% year-over-year increase. The company expects trading volume to surge, contributing to a significant rise in commission income. Net interest income is also projected to increase, with a focus on maintaining a high non-GAAP net profit margin. The company plans to continue its expansion in key markets, leveraging its strong client asset growth and new funded accounts.
In conclusion, the earnings call for Up Fintech Holding highlighted a period of robust growth and strategic expansion. The positive sentiment was driven by record revenue, significant client asset growth, and strong net income. Despite some challenges, the company’s forward-looking guidance suggests continued success and market leadership.