UP Fintech Holding Limited (NASDAQ:TIGR) Q2 2024 Earnings Conference Call August 30, 2024 8:00 AM ET Company Participants Aaron Li - Head of Investor Relations Wu Tianhua - Chairman and Chief Executive Officer John Zeng - Chief Financial Officer Conference Call Participants Hua Fan - CICC Cindy Wang - China Renaissance Judy Zhang - Citi Operator Ladies and gentlemen, thank you for standing by, welcome to the UP Fintech Holding’s Limited Second Quarter 2024 Earnings Conference Call. At this time, all partici ...

SINGAPORE, Aug. 30, 2024 (GLOBE NEWSWIRE) -- UP Fintech Holding Limited (NASDAQ: TIGR) (“UP Fintech” or the “Company”), a leading online brokerage firm focusing on global investors, today announced its unaudited financial results for the second quarter ended June 30, 2024. Mr. Wu Tianhua, Chairman and CEO of UP Fintech stated: “In the second quarter, driven by a more active market environment and our comprehensive product offerings, trading volumes increased 23.9% quarter over quarter and 62.5% year over ye ...

Company Overview - UP Fintech Holding Limited is a leading online brokerage firm focusing on global investors [4] - The company offers a proprietary mobile and online trading platform that enables trading in equities and other financial instruments across multiple exchanges worldwide [4] - UP Fintech employs a "mobile first" strategy to enhance user experience and attract new customers while retaining existing ones [4] Financial Results Announcement - UP Fintech will report its financial results for the second quarter ended June 30, 2024, before the U.S. market opens on August 30, 2024 [1] - An earnings conference call is scheduled for 8:00 AM U.S. Eastern Time on August 30, 2024 [1] Conference Call Details - Participants must preregister online to receive dial-in numbers for the conference call [2] - A registration link is provided for participants to RSVP and obtain access information [3] - A live and archived webcast of the conference call will be available on the company's investor relations website [3]

Company Overview - The company is a leading US stock trading platform with rapid growth in both customer quantity and quality [1] - Founded in 2014, the company has expanded its licenses through acquisitions in regions including the US, Australia, Hong Kong, and Singapore [1] - The founder holds high voting rights as the largest shareholder, while Xiaomi is the second-largest shareholder [1] - The company achieved its first profitable quarter in 2023 under Non-GAAP standards [1] Financial Performance - Net revenue grew from $55 million in 2019 to $226 million in 2023, with a CAGR of 43% [15] - Commission and interest income remain the primary revenue sources, accounting for 80% of total revenue [15] - In 2023, the company achieved a Non-GAAP net profit of $43 million, with a net margin of 16% [16] - Customer assets reached $30.6 billion by the end of 2023, a 118% year-over-year increase [23] Market Expansion - The company entered the Singapore market in 2020 and has maintained a leading position with innovative products like the Tiger Boss card [48] - In Hong Kong, the company has expanded its licenses and is leading in the virtual asset sector [6] - The company has actively expanded into overseas markets, including the US, Australia, and New Zealand, with a relatively complete set of licenses in the US [6] User Growth - The number of funded accounts grew from 110,000 in 2019 to 900,000 in 2023, with a CAGR of 68% [21] - The conversion rate of funded accounts increased from 17% in 2019 to 41% in 2023 [21] - Average customer assets reached $35,000 by Q1 2024, a 77% year-over-year increase [23] Competitive Advantages - The company has a first-mover advantage in Singapore, entering the market earlier than competitors and continuously launching new products to solidify its position [48] - In Hong Kong, the company has made significant progress in virtual asset trading, becoming the first mainstream online brokerage to upgrade its license to include virtual asset trading services [6] - The company's commission rates are competitive, with lower fees compared to traditional brokers in Singapore and Hong Kong [45][46] Industry Trends - The company benefits from the beta resonance of US and Hong Kong stock markets, with commission income driven by market trends and interest income influenced by market interest rates [34] - In Singapore, the company has capitalized on the high proportion of Chinese residents and the growing interest in stock investments [38][39] - Hong Kong is expected to become the world's largest wealth management center by 2025, with a significant portion of assets invested in stocks, providing growth opportunities for the company [49][50]

Summary of UpFintech Holding Limited Q1 2024 Earnings Conference Call Company Overview - The conference call is regarding UpFintech Holding Limited, a financial services company focused on providing online brokerage services. Key Points - The call is part of the first quarter 2024 earnings report, indicating the company's ongoing financial performance and strategic direction [1]. - The conference was recorded on June 5, 2024, suggesting the information is current and relevant for investors and stakeholders [1]. Core Insights - The presentation will include a detailed overview of the company's financial results for Q1 2024, which is crucial for understanding its performance metrics and growth trajectory [1]. - A question and answer session will follow the presentation, allowing for direct engagement with analysts and investors, which can provide additional insights into the company's operations and market conditions [1]. Additional Important Content - The call is structured to ensure that all participants are in a listen-only mode initially, which may indicate a focus on delivering a clear and uninterrupted presentation of the financial results [1]. - The timing of the call in early June suggests that the company is aligning its reporting schedule with industry standards, which is important for maintaining investor confidence and transparency [1].

UP Fintech Holding Limited (NASDAQ:TIGR) Q1 2024 Earnings Conference Call June 5, 2024 8:00 AM ET Company Participants Aaron Li - Head of Investor Relations Tianhua Wu - Chairman and Chief Executive Officer John Fei Zeng - Chief Financial Officer Conference Call Participants Hua Fan - CICC Alan Chen - Citi Operator Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mod ...

EXHIBIT 99.1 UP Fintech Holding Limited Reports Unaudited First Quarter 2024 Financial Results Singapore, June 5, 2024 – UP Fintech Holding Limited (NASDAQ: TIGR) ("UP Fintech" or the "Company"), a leading online brokerage firm focusing on global investors, today announced its unaudited financial results for the first quarter ended March 31, 2024. Mr. Wu Tianhua, Chairman and CEO of UP Fintech stated: "Market backdrop was more active in the first quarter, total revenue in the first quarter was US$78.9 milli ...

Financial Performance - The company reported total revenue of US$78.9 million for Q1 2024, a 19% year-over-year increase, reaching a nearly three-year high [1] - Non-GAAP net income attributable to the company was US$14.7 million, representing a 12.9 times increase quarter-over-quarter and a 42.4% year-over-year surge [1] Client Growth and Trading Activity - In Q1 2024, the company added 51,700 new global account holders, an 8.1% increase quarter-over-quarter, bringing the total to 2.25 million accounts [2] - The total trading volume grew 27.4% year-over-year to US$85.4 billion, with net asset inflow reaching US$5.3 billion for the quarter [2] - Total client assets increased by 7.4% quarter-over-quarter and 103.8% year-over-year to an all-time high of US$32.9 billion [2] Product and Service Innovations - The company launched Singapore's first local debit card that rewards users with fractional shares, aimed at novice investors [3][5] - The Cash Boost trading account was introduced, allowing clients to trade without pre-depositing funds, enhancing capital efficiency [3][6] - In Hong Kong, the company pioneered virtual asset trading services for professional investors, with plans to extend this to retail investors [8] Market Expansion and Client Engagement - The company experienced a 40% quarter-over-quarter increase in client assets in Hong Kong, with an average net asset inflow of US$18,000 per newly funded client [7] - In Australia, trading accounts increased by 20.5% in Q1, with a nearly tripled net inflow of clients compared to the previous quarter [9] - New Zealand saw a 77% quarter-over-quarter increase in newly funded clients and an 87.9% increase in new trading clients [10] Wealth Management and Investment Banking - The company's wealth management services doubled year-over-year in both assets under management (AUM) and user numbers, with significant growth in the Tiger Vault service [12] - In investment banking, the company ranked third among Hong Kong IPO underwriters, facilitating multiple IPOs and block trades [13][14]

Financial Performance - Total revenues for the first quarter of 2024 were US$78.9 million, reflecting a 19.0% increase year-over-year and a 12.8% increase sequentially [3][11] - Commissions increased to US$27.8 million, up 9.2% from US$25.4 million in the same quarter last year, driven by higher trading volume [1][11] - Interest income rose to US$43.8 million, a 26.8% increase from US$34.6 million year-over-year, primarily due to increased margin financing and securities lending activities [1][11] - Net income attributable to ordinary shareholders was US$12.3 million, compared to US$8.0 million in the same quarter last year, marking a significant improvement [6][11] - Non-GAAP net income attributable to ordinary shareholders was US$14.7 million, a 42.4% increase year-over-year [6][11] Operating Costs and Expenses - Total operating costs and expenses were US$50.8 million, an increase of 10.6% from US$45.9 million in the same quarter last year [2][5] - Employee compensation and benefits expenses rose to US$27.8 million, up 13.9% from US$24.4 million year-over-year, due to an increase in global headcount [2][5] - Marketing and branding expenses decreased to US$4.4 million, down 15.3% from US$5.2 million in the same quarter last year, as the company optimized its marketing strategy [5] Customer Growth and Market Position - The company added 28,800 new funded accounts in the first quarter, bringing the total to 933,400, a 15% increase year-over-year [3][11] - The total account balance increased by 103.8% year-over-year to US$32.9 billion, with a net asset inflow of US$5.3 billion in the first quarter [3][11] - The average net asset inflows for new funded clients in Singapore and Hong Kong were approximately US$14,000 and US$18,000 respectively, indicating successful market penetration [3][11] Product and Service Innovations - The company launched several localized products, including the Tiger BOSS Debit Card in Singapore, which allows users to earn fractional shares for every dollar spent [3] - In Hong Kong, the company introduced spot cryptocurrency trading services for professional investors, enhancing its service offerings [3] - The company obtained a Type 9 license from Hong Kong's Securities and Futures Commission to provide asset management services, expanding its capabilities [3]

Core Insights - UP Fintech Holding Limited reported total revenues of US$78.9 million for Q1 2024, marking a 19.0% increase year-over-year and a 12.8% increase sequentially [3][11] - The company achieved a GAAP net income of US$12.3 million, a significant recovery from a net loss of US$1.8 million in the previous quarter, and a 54.8% increase year-over-year [3][6] - Non-GAAP net income reached US$14.7 million, representing a 12.9 times increase quarter-over-quarter and a 42.4% increase year-over-year [3][6] Revenue Breakdown - Commissions totaled US$27.8 million, up 9.2% from US$25.4 million in the same quarter last year, driven by increased trading volume [1][11] - Interest income rose to US$43.8 million, a 26.8% increase from US$34.6 million year-over-year, primarily due to higher margin financing and securities lending activities [1][11] - Other revenues increased by 30.2% to US$4.5 million, mainly from enhanced currency exchange services [1] Operating Costs and Expenses - Total operating costs and expenses were US$50.8 million, reflecting a 10.6% increase from US$45.9 million in the same quarter last year [2][5] - Employee compensation and benefits expenses rose to US$27.8 million, a 13.9% increase from US$24.4 million, attributed to a growing global workforce [2][5] - Marketing and branding expenses decreased by 15.3% to US$4.4 million as the company optimized its marketing strategy [5] Customer and Account Growth - The company added 28,800 new funded accounts in Q1 2024, bringing the total to 933,400, a 15% increase year-over-year [3] - Total account balance surged by 103.8% year-over-year to US$32.9 billion, with net asset inflow of US$5.3 billion in the first quarter [3][4] - The average net asset inflows for new funded clients in Singapore and Hong Kong were approximately US$14,000 and US$18,000, respectively [3] Product and Service Innovations - UP Fintech launched the Tiger BOSS Debit Card in Singapore, allowing users to earn fractional shares for every dollar spent [3] - The company introduced a Cash Boost Account in Singapore, enabling local users to engage in Contra Trading with an instant trading limit of up to SGD 20,000 [3] - In Hong Kong, the company launched spot cryptocurrency trading services for professional investors and obtained a Type 9 license for asset management services [3] Financial Position - As of March 31, 2024, the company's cash and cash equivalents totaled US$363.9 million, up from US$327.7 million at the end of 2023 [7][10] - Total assets increased to US$3.999 billion, while total liabilities rose to US$3.494 billion [10][12] - The allowance balance of receivables from customers was US$1.2 million, reflecting the growth in the user base and stock price fluctuations [7]