UP Fintech Holding Limited (TIGR) Q3 Earnings call transcript Nov 12, 2024

Daily EarningsTuesday, Nov 12, 2024 7:15 pm ET

2min read

In the third quarter of 2024, UP Fintech Holding Limited showcased a strong performance with significant growth in trading volume, revenue, and net income. The company's strategic expansion into new markets and product offerings, coupled with operational efficiency, underscored its robust financial health and growth prospects.

Financial Performance and Strategic Expansion

UP Fintech Holding Limited reported a total trading volume of USD 163 billion in Q3 2024, marking a 54% quarter-over-quarter increase and 24% year-over-year growth. This was driven by the company's expanded client base and comprehensive product offerings in the U.S. market. The company's commission income reached USD 41.2 million, a 21% quarter-over-quarter increase and 78% year-over-year growth, the highest in the past 3 years. This growth was also reflected in the company's interest income, which increased by 9% quarter-over-quarter and 25% year-over-year to USD 48 million.

The company's total revenue for the third quarter reached an all-time high of USD 101 million, a 16% quarter-over-quarter increase and 44% year-over-year growth. This was attributed to the expansion of the company's user base and robust market activities. GAAP and non-GAAP net income attributable to UP Fintech was USD 13.8 million and USD 20.1 million, respectively, both exceeding the total amount for the first half of 2024.

Market Expansion and Product Innovation

UP Fintech Holding Limited continued to expand its market presence, adding 50,500 newly funded accounts in Q3 2024, representing a 3% sequential increase and a 105% increase year-over-year. The company saw significant growth in client assets, which increased by 7% quarter-over-quarter and 116% year-over-year to USD 40.8 billion. This growth was driven by the company's focus on new markets like Hong Kong, Australia, New Zealand, and the U.S.

In terms of product innovation, UP Fintech Holding Limited launched several new features and upgrades to enhance user experience. The company officially launched Hong Kong stock options and Hong Kong short selling features on its platform, and collaborated with the Hong Kong Exchange to upgrade the Hong Kong stock option feature by offering weekly contracts. The company also enhanced its overnight trading capabilities and upgraded the Tiger Boss debit card to include T+0 automatic subscription and redemption feature for Tiger Vault.

Operational Efficiency and Financial Performance

UP Fintech Holding Limited's operational efficiency was a key driver of its financial performance in Q3 2024. The company's operating profit margin increased to 26%, indicating ongoing improvement in the operating leverage of its business model. This was achieved despite the ongoing rate cut cycle, which saw interest income increase by 9% quarter-over-quarter to USD 48 million.

The company's financial performance was also underpinned by its strategic expansion into new markets and product offerings. UP Fintech Holding Limited underwrote 13 U.S. and Hong Kong IPOs in the third quarter and served as the exclusive lead bank for several IPOs. The company also added 18 new clients in its ESOP business, bringing the total number of ESOP clients served to 597 at the end of Q3 2024.

Looking Ahead

Looking ahead, UP Fintech Holding Limited is well-positioned for continued growth with its robust financial performance, strategic expansion, and operational efficiency. The company's focus on new markets and product innovation, coupled with its prudent management of costs, is expected to drive further growth in the coming quarters. The company's entry into new markets like Hong Kong and its expansion of its wealth management business are key growth drivers for the future.

In conclusion, UP Fintech Holding Limited's Q3 2024 earnings call highlighted the company's robust financial performance, strategic expansion, and operational efficiency. With a focus on new markets and product innovation, the company is well-positioned for continued growth and success in the future.

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