Up Fintech’s Earnings Call Highlights Robust Growth

Up Fintech Holding ((TIGR)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for Up Fintech Holding revealed a generally positive sentiment, underscored by substantial revenue growth, profitability, and market expansion. The company demonstrated strong performance in user acquisition and IPO underwriting, although challenges such as increased operating costs and high customer acquisition costs were acknowledged.

Record Revenue Growth

The company reported a remarkable total revenue of USD 175.2 million, marking a 73.3% increase year-over-year and a 26.3% rise quarter-over-quarter. This significant growth underscores the company’s robust financial health and its ability to capitalize on market opportunities.

Strong Net Income and Profitability

Net income attributable to Up Fintech soared to USD 53.8 million, a 30% increase from the previous quarter and three times the amount from the same quarter last year. The non-GAAP net profit also showed impressive growth, reaching USD 57 million, which is 28.2% higher quarter-over-quarter and 2.8 times higher year-over-year.

User Growth and Market Expansion

The company successfully added 31,500 new funded accounts in the third quarter, with Singapore and Hong Kong being the primary markets. This brought the total funded accounts to 1,224,200, reflecting an 18.5% increase year-over-year, highlighting the company’s effective market penetration strategies.

Increase in Client Assets

Total client assets reached a new record of USD 61 billion, up 17.3% quarter-over-quarter and 49.7% year-over-year. This growth in client assets is a testament to the company’s ability to attract and retain clients in a competitive market.

Successful IPO Underwriting

Up Fintech underwrote 5 U.S. IPOs and 5 Hong Kong IPOs, resulting in a 39.3% increase in IPO subscribers and a 121.5% surge in subscription amounts. This success in IPO underwriting highlights the company’s strong presence and influence in the financial markets.

Significant Growth in Interest and Commission Income

Interest income rose to USD 73.2 million, a 53% increase year-over-year and a 25% rise quarter-over-quarter. Similarly, commission income grew to USD 72.9 million, marking a 77% increase year-over-year and a 13% rise quarter-over-quarter, indicating robust revenue streams from these areas.

Increased Operating Costs

Operating costs increased to USD 89.4 million, a 51% rise from the same quarter last year, primarily due to higher employee compensation and benefits. This increase in costs highlights the company’s investment in human resources to support its growth ambitions.

High Customer Acquisition Costs

The company faced high customer acquisition costs, with Singapore’s average CAC exceeding USD 400 and Hong Kong’s ranging from USD 300 to USD 400. These costs reflect the competitive nature of the markets and the company’s aggressive growth strategy.

Market Volatility Impact

Some users experienced mark-to-market losses due to market volatility in the fourth quarter. This impact of market fluctuations is a reminder of the inherent risks in financial markets.

Guidance and Future Outlook

The company achieved its annual guidance of acquiring 150,000 new funded accounts, with significant contributions from Singapore and Hong Kong. Total client assets reached a record USD 61 billion, marking 12 consecutive quarters of growth. The company also reported a 77% year-over-year increase in commission income and a 53% rise in interest income, indicating strong future revenue potential.

In conclusion, Up Fintech Holding’s earnings call reflected a positive outlook with significant revenue growth and profitability. Despite challenges such as increased operating costs and high customer acquisition costs, the company’s strategic initiatives in user acquisition and IPO underwriting position it well for continued success in the financial markets.