UP Fintech posts solid 2023 Q1 results as global expansion scales up
- Non-GAAP profit doubled quarter-over-quarter (QoQ) to US$10.33 million, a two-year high
- Number of new customer accounts up 40% QoQ, thanks to relentless global expansion efforts
SINGAPORE and NEW YORK, May 30, 2023 /PRNewswire/ -- UP Fintech Holding Limited ("UP Fintech" or the "Company", Nasdaq: TIGR, and all its subsidiaries and consolidated entities), a leading online brokerage with a focus on redefining global investing with technologies for the next generation, announced its unaudited financial results for the three months ended March 31, 2023. Thanks to a scalable global expansion strategy and an unwavering commitment to fintech innovation, the company's revenue stood at US$66.33 million during the period, up 26.0% year-over-year (YoY). The non-GAAP profit attributable to UP Fintech reached US$10.33 million, registering a 128.5% increase QoQ.
During the first quarter, 52,534 new customer accounts were added, up 39.8% QoQ, pushing the global total to 2.06 million. The number of new customers with deposits (number of funded accounts) rose by 30,392, or up 11.2% from the previous quarter, to 811,900.
The total trading volume by customers stood at US$67.0 billion on the company's platform, of which US$23.0 billion was calculated from stock trading, along with 7.89 million options and futures contracts. The total customer asset amounted to US$16.1 billion during the reporting period, up 15.2% QoQ, and the total asset funded by customers approached US$1.2 billion.
Wu Tianhua, CEO and founder of UP Fintech, said: "Amid the global market's modest recovery in the first quarter, the company's revenue and profit saw solid growth, with both our commission and interest-related income, and non-GAAP profit doubled on a quarterly basis. Worth mentioning, our non-GAAP profit marked a two-year high."
"On the fintech innovation front, we brought the industry's first AI investment assistant, TigerGPT. The text-generating AI chatbot aims to provide intelligent decision-making support for global investors. In this period, our self-clearing technologies were gradually applying to Hong Kong stock trading orders, helping nearly halve our clearing expenses on a quarterly basis."
"In our global expansion journey, we tread steadily during the past quarter. Sequential growth was seen in both the number of new customer accounts and the number of new funded accounts, and a strong rise was witnessed in the net asset inflow, indicating that we gained widespread trust for our one-stop global investing offerings from investors worldwide. Looking ahead, the company is committed to leveling up its products and services, in leverage to consolidate its leading position in various global markets, while maintaining long-term and sustainable growth momentum," he added.
Number of new customer accounts up 40% QoQ
In Singapore, a wealth management license on its way
In the reporting period, the company's unparalleled product offerings helped expand its global customer base. A steady increase was seen in two key customer acquisition indicators. The number of customer accounts was up 52,534, or 39.8% sequentially, and 30,392 new customers with deposits (number of funded accounts) were added, or up 11.2% on a quarterly basis.
In Singapore, the company's leading position was further cemented, with a stable and high-worth local customer base retained and served well. By the end of the reporting period, in Singapore, the average asset balance marked a continuous increase to approach US$15,000 per account. Also during the period, trading proactivity and willingness were seen in all local customer age groups, particularly among users aged below 30, where the company's flagship platform Tiger Trade received stepped-up recognition with the trading frequency up 17.8% on a quarterly basis.
On the business expansion side, the breadth went deeper. The Monetary Authority of Singapore approved in principle a CMS (Capital Markets Services) Fund Management license, initially qualifying the company to manage funds for local customers.
In Hong Kong, US options feature went live. With long and short options available and margin discounts for combination strategies introduced, the company is dedicated to offering local investors inclusive and bang-for-the-buck options trading services. In an effort to lower the investment threshold and help investors spread risks, the company also became one of the few brokerage firms that support US stock AIP (automatic investment plan) and ETF AIP, with a starting amount of US$1. This renders investors leeway to tailor investment strategy on a daily, weekly, biweekly, or monthly basis.
In Hong Kong, local operations are implemented in a learning manner to set up a mutual communication channel with local users, with an active "Tiger think tank" program for more feedback. The company's accessible products and premium services also brought industry awards, including the "Outstanding Online Broker" award by Finet Group, and the "Excellent Stock Trading Platform" award by the Sky Post.
Tiger Vault was also unveiled in Hong Kong. As a wealth management service that helps users better manage their idle cash, it is featured by its US$1 investment starting point, zero commission, and high liquidity.
In Australia, the number of new funded accounts doubled in the period, while the number of new trading customers jumped 69.7% on a quarterly basis. The US stock AIP feature introduced earlier has been widely lauded for its equal accessibility. During the reporting period, a 106.1% sequential growth was seen in the number of local customers who started AIP for the first time. For the second consecutive year, the company received the "Best for ETFs" award from local media WeMoney, and was also a finalist for the "Best for International Investments" award.
TigerGPT, the industry's first investment assistant, introduced
Options trading experience enhanced with feature updates
On the product side, the company has been placing investors' experience at the center of everything it does.
On Tiger Trade's mobile app, new features were presented, including updated display customization of the earnings calendar, dividend distribution, and macroeconomic data, as well as a new lite version for stock positions, and insights on anomalous movements. On the desktop platform, new functions such as one-click trading tool for all investment products, and at-auction orders for Hong Kong stocks were added.
An enhancement was also made to the options trading experience. An options screener was added on the Home/Discover page in Tiger Trade app so as to help investors better shape up their strategies. In another gesture to lower the costs of frequent options trades, a pricing ladder on the US options trading commission was launched to let investors select the periodical pricing plan in a flexible fashion.
Forty-five pieces of investor education materials were made in the period, covering topics from ETFs basics and hands-on, analysis of US stocks' financial results, encyclopedia of financial terms, and understanding of stocks' trendlines and technical indicators. By the end of the reporting period, this systematic education program had consisted of over 800 pieces of materials spanning from "basics learning" to "case studies" and to "technical manuals".
Thanks to the ever-improving user experience, during the period, the stock trading volume reached US$23.0 billion on the company's platform, up 12.4% QoQ. In addition, 7.89 million options and futures contracts were made, up 6.1% QoQ.
In the first quarter, the company's income from commission stood at US$25.44 million, and the interest-related income was US$37.44 million, up 119.9% YoY. In the meantime, the clearing costs in the period dropped by 46.1% YoY, signaling a boost in operational efficiency.
Tiger Vault AUM up 77% sequentially
A fifth of new customers try wealth management services in Singapore
In the first quarter, the company's wealth management business continued its growth in tandem with the widened global expansion. The asset under management (AUM) rose 79.1% on a sequential basis, with the number of wealth management-activated accounts up 34.0% QoQ.
Tiger Vault's seven-day annualized rate of return reached 4.8%* at its peak — a stable yield that had earned it more investors' recognition worldwide. During the period worldwide, Tiger Vault's AUM rose 77.4% on a sequential basis, with the number of Tiger Vault-activated accounts up 50.7% QoQ.
In Singapore, amid the buoying demand for a more diversified product portfolio and a growing interest in countering market volatility, nearly 20% of new funded accounts had tried wealth management services offered by the company. In the market, Tiger Vault's AUM rose 46.6% on a sequential basis, with the number of Tiger Vault-activated accounts up 30.5% QoQ.
Within wealth management services, new fund rankings were introduced to include different themed lists, including "most consistent performers", "top traded funds", and "best performing funds". Different levels of risk preference are covered with improved efficiency in fund selection. In Singapore, during the period, the Fund Mall further supported AIP and facilitated the investment process, where local customers can invest in Singapore dollar-denominated funds with the fund from their bank accounts.
Investment banking growth momentum continues
ESOP ARR doubled YoY
During the reporting period, other revenues from to-business corporate services, including investment banking and employee stock ownership plan (ESOP), reached US$3.45 million.
The company underwrote 7 Hong Kong IPOs, placing the company in third position worldwide among all investment bank institutions, according to third-party data provider Wind.
On the ESOP side, during the period, UponeShare signed 29 ESOP clients, bringing the total number of clients to 448, up 32.5% YoY.
Thanks to its closed-loop services which span all stock options-related scenarios, UponeShare's general client stickiness remained at a high level. During the period, the value of signed contracts rose 50.5% YoY, with the annual recurring revenue (ARR) up 103.8% YoY.
*4.8% was the seven-day annualized yield rate marked on March 30, 2023 for Tiger Vault's fund SGXZ99103178. Please note that this historical rate does not guarantee the fund's future yields.
About UP Fintech
UP Fintech Holding Limited (Nasdaq: TIGR), also known as Tiger Brokers, is a leading online brokerage firm with a focus on redefining global investing with technologies for the next generation.
Founded in 2014, the company relentlessly offers superior user experience in pursuit of becoming a world-leading online brokerage, to let everyone enjoy efficient and smart investing. Currently, we offer a multitude of quality financial products and services across brokerage, employee stock ownership plan (ESOP) management, investment banking, wealth management, investor community, and investor education.
UP Fintech strives to elevate financial technology R&D to a new level. While we inherit the best traditions from the financial sector and blend them with the best minds of tech experts, we develop our own technology infrastructure—an aggregation that enables multi-currency trading of various products across markets, guaranteeing our reliable, secure, and scalable services are accessible to all with low latency.
In March 2019, UP Fintech was listed on Nasdaq under the ticker TIGR. As of now, we serve over 9 million users and more than 2 million account holders worldwide on our flagship platform "Tiger Trade", own 69 licenses and qualifications in different markets, and have over 1,000 employees on the team in Singapore, New Zealand, the US, Hong Kong, Australia, and Mainland China.
For more information about UP Fintech as a company, please visit itigerup.com.
For media inquiries, please contact press@itiger.com
Safe Harbor Statement
This announcement contains forward−looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as "may," "might," "aim," "likely to," "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements or expressions. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward−looking statements. The Company may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including the earnings conference call. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the cooperation with Interactive Brokers LLC and Xiaomi Corporation and its affiliates; the Company's ability to effectively implement its growth strategies; trends and competition in global financial markets; changes in the Company's revenues and certain cost or expense accounting policies; the effects of the global COVID-19 pandemic; and governmental policies and regulations affecting the Company's industry and general economic conditions in China, Singapore and other countries. Further information regarding these and other risks is included in the Company's filings with the SEC, including the Company's annual report on Form 20-F filed with the SEC on April 26, 2023. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Further information regarding these and other risks is included in the Company's filings with the SEC.
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SOURCE UP Fintech (Tiger Brokers)
