TIGR - Earnings call transcript Q1 2024 | UP Fintech Holding Limited

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited First Quarter 2024 Earnings Conference Call. [Operator Instructions] I must advise you that this conference is being recorded on June 5, 2024, and I would now like to hand the conference over to your first speaker today, Mr. Aron Lee, the Head of Investor Relations. Thank you. Please go ahead.

Aron Lee

operator. you, Thank thank today. and joining for us Hello, you call the everyone, for UP earnings website Quarter earlier First services. Fintech Limited's Holding XXXX well global is on as today available release our ir.itigerup.com IR at as newswire and distributed was

from Huang, call are Fintech Tiger Kenny and CEO Chief of today Chairman Chief Financial Zhao, Mr. John Mr. Controller. Officer; U.S. Mr. On Zeng, Tianhua, our Officer. and UP the Wu Executive Mr. Financial Lei Securities;

our business financial Mr. and give both Wu following overview of remarks. will questions our will highlights. their corporate discuss be your Zeng session results. operations Mr. the answer an discuss will Q&A during prepared available then to They

forward-looking Securities me the safe statements. Now cover differ statements cause Reform they Litigation in harbor. the the those are to results forward-looking meaning could of materially of U.S. factors statements from number of contained XXXX. make actual A Private let The within Act contain about to any

factors to actual today, June information statements, annual our statements, undertake April furnished X-K more XX, those filed results Form law. XX-F as please XXXX, applicable forward-looking obligation refer XXXX. could and forward-looking under Form from differ about no report X, our in For update on materially any to to that on except We cause required

by Wu pleasure remarks. Mr. now translation. your Mr. in my make will Chief ahead be English Wu. introduce go to Mr. remarks followed is which Executive It our Chairman Wu, Officer, and with Chinese, please will

Tianhua Wu

[Foreign Language]

Tiger Hello, Quarter XXXX everyone. Fourth Earnings Brokers Call. the joining for Conference Thank you

[Foreign Language]

in rebound a quarter, first the In saw backdrop. moderate we market

sequentially XX% X the million, year-over-year. years, highest reached increased revenue the total Our past quarter $XX.X and XX.X% in

net previous and XX%. revenue increase USD Non-GAAP from up The turned of income the the of margin income XX.Xx XX% and XX.X the operating up structure GAAP net year-over-year. positive quarter back was bottom line, year-over-year. efficiency, the on nearly USD to non-GAAP million, million to profit optimization track. that Our XX.X and benefiting profitable momentum net in XX% company's was rebounded

further base and ARPU costs we and the sustainable achieving forward, product fixed healthier growth will more through Going leverage profitability. improvement, by thereby diversification, brought of user

[Foreign Language]

quarter, the of new number funded increase first accounts of quarter, reached total of funded of of more and added months as clients, XXXX. new acquired new and accounts the in second achieving fourth XXX,XXX we've are In the least the accounts X XXX,XXX in already than confident In guidance XX% of funded XX,XXX we the end current an first quarter, funded we our full XX,XXX at year year-over-year.

total After strong a the loss, net institutional of continued the USD of the end terms balance year, from neutralizing with users increase last assets, year-over-year. users. contributed In building historic momentum total year, sequentially of in quarter inflows XX.X quarter assets and mainly USD first the reached by the of X.X this the in of impact asset X% net asset first XXX% in high an Singapore mark-to-market of fourth from billion, inflows balance and the billion for quarter,

Language] [Foreign

our ensure high-quality the from USD average more are USD exceeded quarter are is the an With Kong our asset net in recognition acquired presence. the in quarter. continues of Hong Kong to we grow In net Also, demonstrating we and we the local remains clients acquired long-term headquarter Our first the Singapore, clients inflow committed Hong market glad from newly have to to users, see inflows XX,XXX, gained average high-quality strategy to profitability first our of asset where onboard clients from platform. brand high-quality keep attract our located, to traffic acquiring over retail newly unchanged. organic to advantage XX,XXX

[Foreign Language]

Kong with customer commission average the the to percentage Singapore and in of clearing And only has XXX shares which low a over was while income low our fee overall and as our quarter. of first and and product advantages Hong clearing USD the around X%, indicating the dropped years. efficiency, to acquisition ensuring cost addition, levels, further of In costs the historical profitable are user a experience reducing that industry-leading quality improve improvement through efficiency, both our R&D brand we variable strength keep

Language] [Foreign

fractional we In our different also a license to local the collaborated better the spending. stock allows feature partner Debit investing. to to Card product out Singapore reward more that in users product numerous launch February, ownership users across daily to offerings. stock licenses Tiger from to users' our card earn shares Singapore BOSS local U.S. and fourth in consumption In and quarter, diversify connects naturally users more localized we This rolled is gained markets which the into serve their debit market, onboarding the first with everyday

on deposit Language] needs launched Additionally, Singapore we Boost April. Boost operates system, facilities. [Foreign catering Singapore to and first broker Cash local contract Contra The Fintech without initial strategy [ Cash Brokers were required. Trading in featured offer local the credit an Account ] the Brokers Tiger Account to Tiger in

professional we investors quarter license launched officially this provide Kong and include the services virtual we feature obtained in in investors. management the Hong first March in can uplifted trading to online we Type as mainstream billing our as asset cryptocurrency making first In Hong brokerage license Also, to services provide Kong, a to well in investors. April, to X that asset so Type-X for firm services us professional

Language] [Foreign

product to needs. from X rolled out investor we Apart upgrades meet major better those

capture market Overnight during the in the hours users, and launched feature, particularly and allows Asia which treat to opportunities. we Firstly, market region ETFs Pacific stocks more Trading local U.S.

early our or volatility the upgraded features. potential better options trading allows exercise introducing not the Option exercise options of This bid mitigate liquidity option in-the-money capabilities before in-the-money clients our of by to U.S. expiration. the do risk challenges have we and Secondly,

Language] [Foreign

Lianlian Investment Digitech. ESOP underwrote and X business Group In the XB business, well. including U.S. In total perform to Concord Kong XXX served XX% ESOP number bringing end to new at clients we of added of first and in the an we XXXX, our Our of Healthcare continues first XX quarter in of Banking, the quarter, first the year-over-year. quarter, the Hong increase

[Foreign Language]

I'd like John, CFO, financials. over right. All our to our Now to invite go

John Zeng

Thanks and Tianhua Aron.

me our performance dollar. Let quarter. numbers for in the All financial U.S. go first are through

see $XX.X quarter-over-quarter. sentiment X% earlier, As quarter last was XX% improving did this XX% quarter-over-quarter. increased increased Tianhua quarter. and market mentioned million, was year-over-year versus we and Commission year-over-year Interest income income $XX.X XX% million,

from our reflected income. $XX.X we operating We revenue reclassified an this it so nonoperating our and see part from income as U.S. interest Please routine or million going top revenue of total note business, XX% year-over-year in gain of reached line. quarter-over-quarter. interest the forward Together, [indiscernible] income to loss the generated in quarter, should be this XX% increase

quarter, the from futures Cash other commission X.X slightly equity bps rest options revenue, quarter. XX% and from comes from Within X.X rate last products. this of from take XX% was and cash about decreased bps equities,

Hong cost. self-clearing primarily XX in to million, last $X.X for Kong high for increased with expense expense interest was rate period of environment. efficiency same by the in Singapore securities. from and clearing switching to Now X% of and U.S. increased year last Execution -- Interest due the more $XX.X year, sorry, from -- line by quarter same million, decreased XX% were

seen of equity to commission Kong $X.X we Hong went XX% to compensation percentage the R&D. and Occupancy, Communication and expense benefit Tiger gradually user million. of amortization cash since clearing XX% data were year-over-year Hong head XX% from increase Hong the time strengthen market base depreciation onboard an overseas time year-over-year to services. market. due expense retail of increase were $X.X expense moved increase as the year. we past Broker $XX.X decreased an and IT-related count due equity to increase Kong down Kong to growth to million, position have and have during expense in We and Employee million, And

and keep of Total expense $X.X marketing of year. XX% fees. Marketing to service $X.X strategy. in year-over-year operating $XX.X an our year-over-year we were increase increase as the last expenses costs quarter quarter, General of were million, million, from this same administrative increase an decreased were an optimizing due professional XX% XX% and channel million

increased million bottom XX% the GAAP quarter $XX.X was the compared income million, GAAP income and result, XX% GAAP Non-GAAP increased a year. year-over-year. on of non-GAAP increase both an a a positive turned and to in million line versus net last previous net $X.X As of to $XX.X same net of basis. loss quarter

presentation. please the concluded Operator, Q&A. line open our I have for Now

Operator

[Operator comes Instructions] question CICC. Fan from Our first the of from line You

You Fan

Language] [Foreign

is You from This Fan here. have questions X CICC. I

in and accounts is X-year XX,XXX funded The acquired April May XX,XXX more in We funded accounts. regarding than QX new first one and added guidance. new nearly the already

up assets still trading now? the we business progress the run And shall velocity our is second X-year about of the guidance? is QX. inflow, asset How total in and question client rate our So maintain to

Tianhua Wu

[Foreign Language]

for place customer the and great will our importance on not merely user growth. model number compromise We profitability quality

we the partnership first our ROI some vendors During target. or adjusted period quarter, did with terminated acquisition and our that not channels payback meet

recovery on customer as XX,XXX to So increased XX,XXX, of inflows seen reaching both average markets new of quarter. funded a our we've market. Kong and this, first new in also U.S. and respectively. Recently, user the market we've in Hong in continued result, clients acquisition netted improve in has our Based input Kong and Singapore quality second a the quarter, activity with the Hong in

local has Singapore Contra the users. the Card quarter and of Although by the launch also very Tiger in Debt received been BOSS Trading well feature this

we've onboarded XX,XXX April over already May. and consequently, So in users funded new

of XXX,XXX are users. [Foreign We our full therefore year Language] at in new least adding funded confident meeting guidance

the sequentially. for For the first as of mentioned, improved new I of the has second question, accounts second funded X significantly months the quarter, number

our equity clientele. in the more asset activity U.S. cash along months, Hong be on with the believe will robust net momentum the quarter, client Hong inflow quarter. momentum. mix we trading And the increased the of of our maintained and strong trading the market second remained Kong X in volume percentage recent from also Kong first the of Our has that also diversified has Hong Kong growth volume has Building and

in sequentially Interest-related Contra on product income move contract recently enhance operator. and the the debit remained and out next offerings, far our user quarter. Crypto Please expand Overnight to further also to Trading various Trading ARPU. Thank Tiger stable you, rolled treating, second new platform, on including and We've also has increase card, so experience question. features the

Operator

Fok next question of DBS. comes Our the from Edmond line from

Edmond Fok

[Foreign Language]

questions. X have I

lastly, the original the meets have the the is is in the think expectation. of And in view during breakdown competition, question the Kong Hong Also company the our business to momentum. maintain market. question does trading? quarter? for is first new about Tiger's is development first how Crypto Kong plans second in Hong growth account the fierce progress fund latest any And what the company The Does

Tianhua Wu

Language] [Foreign

from came question, the XX% from XX% came Australia XX% second quarter, the first the the the Singapore from hand Zealand market, CFO, accounts to more John. in over fourth U.S. and from New market. I funded now XX% Hong over question and On our region Asia, the Southeast back came and new than of Kong around

John Zeng

[Foreign Language]

So entered with year Kong after we a few A progress ago, overall, has points. the Hong our expectations. in line key been market

our started, to clearing we trading. Hong when first cost all, one of First the of Tiger's for priority Kong was reduce

So far, we achieved have goal. this

other Before have license, was we Hong Hong to unprofitable Hongkong fee brokers. The and had expensive Kong we through trading was for us. clear Kong Stock equities

in So was our Hong limited. Kong investment market

for further fee local our and we commission expense volume Kong overall is X commission, invest the rate which helped users X%. gradually very XX% go With the trading around trade and to us product resource more can clearing less X gross This is cash volume important Kong Hong into the Now expense, equity group's will lower Hong our lower increase, for of for we as to increase platform Kong fee Hong trading than as down. Hong clearing offer clearing fee Kong equity. R&D, clearing has

quarter. adding Overnight versus Hong wealth Kong much and comprehensive trading, trading in Hong shares, Broker and product short options option [ like in we Hong currently equity cash Kong will we Kong Kong addition, out rolled offering In recently be supports the have trading, Trading, [indiscernible] equity product selling U.S. We management third U.S. FCN ]. and more for Hong both a Tiger before.

are crypto, past quarter. spot very the uplifted, in fintech account first XX% Kong going The license first we quarter-over-quarter to also broker see out the contribution with market marketing acquisition, terms around from users steadily strategies, over for as to has the our as Hong over we ETFs. this one As our trade is our opening asset we well in Kong are of year-over-year in for XX try Hong customer nearly in pipeline the Hong risen different U.S. client now quality total to trading Hong Kong, year, activities keep new XX% crypto good. The of funded XXx Kong clients And process, optimizing Bitcoin and clients and of and quarter. increased allowing have

Operator

comes Our the Citi. Alan Chen from next of from question line

Alan Kuang

[Foreign Language]

today. X have I questions

gain, The could taken Contra question And products booked to this little and a have is the on first us the on give debt let's questions. apply launched as the color much FX X there Trading to say, impact some longer who depositing is in debt first acquisition that be tool wondering That's as loss card? on this risks share can management second perhaps your is the products function, Tiger's of product question mentioned earnings? loss action brokerage you funds in customer in and on the how can performance? And for into accounts. forward, funds financial impact in how functions restrictions bit term, gain no trading, make Could how Tiger Singapore. BOSS And any would their more could the this And Contra a have their quarter my is Wondering any trade or FX for for used Tiger? management would that Trading clients, a stocks without on you gain manage for limit if you accounts. clients the any if looking FX cards,

Tianhua Wu

[Foreign Language]

this users' their with regarding question local to available activities. this connect and So for our okay? this partner. card BOSS first was fixed and card users we your apply, with launched trading The users' behind Tiger incremental For licensed intention both is card, debit spending daily product the use stock

like Google Pay Pay high-rated So allows wallets specifically, to Apple the users debit it digital card for and link purchases. with

on For better popular will like made rewards scheme security that user form of transaction of reward or a the this the in of and every traditional loyalty cashback, shares Tiger be transaction U.S. believe share rewarded account miles, we platform through card, to card experience. Tesla. Compared amount to fractional fractional user points bank stocks the provide XX%

there Firstly, lockup fraction days, for is period no of the expiration a share.

offer It build motivation this stimulate users' bank our spending type importantly, well fintech product has initial requiring new investment can we capital. reward of portfolio platform. in Since Singapore large such launch, without also users. stickiness be services. increase first And through to broker are gradually local its to them by unique proud the card to their and very More daily their allows investment to received the been

local card transaction As [ this of the end spend for of our May, nearly cardholders ] the average have Language] the frequency users exceeded expectations. [Foreign and X,XXX from off has

Contra feature certain Singapore leveraging capital Tiger So caters comprehensive instant offer credit initial service, any most to fintech feature, broker access by traders assessment their providing to in was input. based This regarding Singapore's the this Trading the seasoned trading on requiring to limits without credit system. fourth

any the the also can trading share funds. the four time stocks investors From using It days sell X them pocketed the allows stock price provided purchase Contra conversely in without drops, price the available rises, needing be if investors difference funds. buy can the to limit. the as own later If their settle contract difference gain; to up the immediate hand or traders before trading days to using provides and users' stock deposit seasoned to perspective, without flexibility capital Trading around the

have Given applied nature thorough Contra risk the based of Trading, credit the we control.

strict automatic also top-up, position. If settlement automatically For sorry, X ensure reduces replenishes process frozen, currently limit will without to rating only permitting closing available losses credit until days gap. users the is reduced losses to exceeded after by -- example, with day the Payments matches be Contra are user limit. feature the a the this authorized Singapore only a approval

[Foreign Language]

the So on FX dollar. P&L RMB, due and in New the U.S. our [ gain to mainly the ] Singapore dollar and are losses dollar the against fluctuation the Zealand

$X gain. over QX, So FX in U.S. compared QX, in the resulting to dollar appreciation the of in million

gain can something because not we is So control. the FX loss or

under assess in bill feel operating, our So can of We top income. treasury we business. investors a interest the line routine into to give profitability better move understanding from our the to better decided this group's revenue

USD interest So treasury in from million. about U.S. X.X QX, income investment was

Operator

further questions no at time. are There this

So remarks. I'll closing for call Aron hand the to back

Aron Lee

everyone like of our the your behalf Tiger. Thank on to call today's today. I'd call the I'm thank you. team joining appreciate closing here at for do now management in participation We call.

Investor have you much Relations call, team. concludes the any you If thank to and our reach questions, please out your for time. very further This

Operator

This concludes Thank participating. today's conference call. for you

You now may disconnect.

UP Fintech Holding Limited (TIGR) 5 Jun 242024 Q1 Earnings call transcript