Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 reached $122.6 million, up 55.3% year over year [8] - Total trading volume reached $217 billion, driving commission income to a record high of $58.3 million, more than doubling year over year [8] - Net interest income increased to $53.8 million, a 22.7% year-over-year increase [9] - Non-GAAP net income attributable to UP Fintech increased to $36 million, reflecting an 18.3% sequential increase and a 145% increase year over year [9] - GAAP net income reached $30.4 million, up 8.4% quarter over quarter and 146.7% year over year [9] Business Line Data and Key Metrics Changes - Commission revenue breakdown: approximately 65% from cash equities, 30% from options, and the remainder from futures and other products [16] - Marketing financing and securities lending balance increased to $5.2 billion, an 89.4% year-over-year increase [8] - The company added 60,900 new funded accounts, representing a 2.9% increase quarter over quarter and a 111.2% growth year over year [10] Market Data and Key Metrics Changes - Client assets reached a record high of $45.9 billion, up 9.9% quarter over quarter and 39.5% year over year [10] - Client assets from the Greater China region increased by over 20% quarter over quarter [11] - Average net asset inflow of newly acquired clients from the Hong Kong market exceeded $30,000 [12] Company Strategy and Development Direction - The company is focusing on enhancing product offerings and improving user experience, including the upgrade of TigerGPT to Tiger AI [12] - The company aims to deepen its presence in the Hong Kong market, which has become a key strategic area [12] - The company plans to continue investing in both talent and marketing in Hong Kong to deliver a superior product experience [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter, noting a significant pickup in market volatility and trading volume [24] - Client assets have set another record high, with net asset inflow remaining strong [25] - The company expects customer acquisition costs to rise due to increased investment in high-value markets like Hong Kong [28] Other Important Information - The company enrolled four Hong Kong IPOs in the first quarter, including Chip and Go and Nanshan Aluminum [14] - The average customer acquisition cost is expected to rise to around $250 to $300 in the coming quarters [28] Q&A Session Summary Question: Impact of market volatility on run rate and early trends - Management noted a significant pickup in trading volume due to market volatility, with monthly trading volume crossing $100 billion for the first time [24] Question: Outlook on profitability and cost management - Management indicated that overall headcount growth will remain disciplined, with compensation expenses expected to grow about 10% to 20% per year [27] Question: Breakdown of net asset inflows by region - In the first quarter, approximately 60% of net asset inflows came from Greater China, 30% from Singapore, and 10% from the US and Australia/New Zealand [34] Question: Interest income and potential impact of Fed rate cuts - Management estimated that for every 25 basis points cut by the Federal Reserve, quarterly net interest income would be negatively impacted by about $1 to $1.5 million [35] Question: Regional breakdown of newly funded accounts - About 45% of newly funded accounts came from Singapore and Southeast Asia, while 35% were from Greater China [41]

Core Insights - UP Fintech Holding Limited reported a total revenue of US$122.6 million for Q1 2025, marking a 55.3% year-over-year increase [1] - Non-GAAP net income attributable to shareholders reached US$36 million, reflecting an 18.3% quarter-over-quarter and 145% year-over-year increase, achieving a historical record [1] - The company added 77,000 new accounts in Q1, a 49.8% increase year-over-year, bringing total global accounts to 2.53 million [1] - Funded accounts increased by 60,900, resulting in a total of 1.15 million funded clients, a 23.5% year-over-year growth [1] - Trading volume surged 154.6% year-over-year to US$217.5 billion [1] - Net deposits reached US$3.4 billion, with client assets climbing to US$45.9 billion, representing nearly a 10% quarter-over-quarter and 39.5% year-over-year increase [1] Financial Performance - The company achieved a record high in non-GAAP net profit, up 145% year-over-year [2] - Commission income for Q1 was US$58.3 million, up 109.8% year-over-year, while interest-related income grew 20.8% year-over-year to US$56.4 million [9] - Wealth management assets under custody (AUC) surged 205% year-over-year in Q1, with the number of users rising 85% year-over-year [11] Client Growth and Engagement - New funded clients in Hong Kong averaged over US$30,000 in net asset inflows, contributing to a 40% achievement of the annual guidance in Q1 [2] - In Singapore, trading volume and orders surged 81.5% and 65.8% year-over-year, respectively [3] - In Australia, deposit amounts and funded clients rose by 71% and 37% year-over-year [6] Product and Service Innovations - The company launched cryptocurrency deposit and withdrawal services in Hong Kong, allowing seamless management of cryptocurrencies like Bitcoin and Ethereum [2][4] - TigerAI was upgraded to enhance options, portfolio, and watchlist analysis, providing smarter investment insights [9] - The platform introduced new features for options trading, including position analysis and take-profit/stop-loss support [9] IPO and Investment Banking Activities - The company underwrote four Hong Kong IPOs and participated in the distribution of the top three Hong Kong IPOs by fundraising volume in Q1 [15] - The IPO subscription business saw explosive growth, with subscribers up 11x year-over-year and subscription volume soaring 800x year-over-year [10] Awards and Recognition - Tiger Brokers received three accolades at The Asset magazine's 2025 "AAA Digital Awards," including "Digital Broker of the Year" and "Best Brokerage App" in Singapore [3]

Core Viewpoint - UP Fintech Holding Limited reported strong financial results for the first quarter of 2025, with significant year-over-year growth in revenues and net income, driven by increased trading volume and customer acquisition. Financial Highlights - Total revenues reached US$122.6 million, a 55.3% increase year-over-year from US$78.9 million [6][10] - Net income attributable to ordinary shareholders was US$30.4 million, up 146.7% year-over-year from US$12.3 million [10][15] - Non-GAAP net income attributable to ordinary shareholders was US$36.0 million, a 145.0% increase from US$14.7 million in the same quarter last year [10][16] Customer Growth and Engagement - The company added 60,900 new customers with deposits in the first quarter, achieving 40% of its annual guidance of 150,000 new customers for 2025 [3] - Total number of customers with deposits increased to 1,152,900, a 23.5% rise compared to the same quarter last year [10] - Net asset inflow was US$3.4 billion, with a total account balance reaching US$45.9 billion, marking a 39.5% year-over-year increase [3][10] Operating Performance - Commissions generated were US$58.3 million, a 109.8% increase from US$27.8 million in the same quarter last year, attributed to higher trading volume [6][10] - Interest income rose to US$53.8 million, a 22.7% increase from US$43.8 million year-over-year, driven by margin financing and securities lending activities [7][10] - Total operating costs and expenses were US$67.1 million, up 32.1% from US$50.8 million in the same quarter last year [11][10] Product and Service Enhancements - New features were introduced to enhance user experience, including cryptocurrency deposit and withdrawal options for retail and professional investors [4] - The company launched Delivery Versus Payment (DVP) functionality and equity repo services to better serve institutional clients [4] - Tiger AI was improved to support portfolio analysis and risk alerts, enhancing investment decision-making for users [4] Corporate Activities - The company underwrote 4 Hong Kong IPOs in the first quarter, including notable listings such as "Chifeng Gold" and "Nanshan Aluminum" [5] - The ESOP business added 20 new clients, bringing the total to 633 as of March 31, 2025 [5]

Core Viewpoint - UP Fintech Holding Limited will report its financial results for Q1 2025 on May 30, 2025, before the U.S. market opens [1] Group 1: Earnings Conference Call - The earnings conference call is scheduled for 8:00 AM U.S. Eastern Time on May 30, 2025 [1] - Participants must preregister online to receive dial-in numbers for the call [2][3] - Confirmation emails with dial-in numbers and personal PINs will be sent to participants after registration [4] Group 2: Company Overview - UP Fintech is a leading online brokerage firm targeting global investors [6] - The company offers a proprietary mobile and online trading platform for trading equities and other financial instruments across multiple exchanges [6] - UP Fintech provides a range of services including trade order placement, margin financing, IPO subscription, and investor education [6]

Financial Performance - Adjusted net income for 2024 was US$71.1 million, up from US$43.2 million in 2023, reflecting a significant increase in profitability [762]. - Net cash provided by operating activities in 2024 was US$828.0 million, compared to a net income of US$61.4 million, driven by increased payables and receivables due to user base growth [772]. - The company maintained a minimum net capital requirement in compliance with SEC regulations, ensuring financial health [763]. Liquidity and Cash Flow - Cash and cash equivalents increased from US$322.6 million in 2023 to US$393.6 million in 2024, indicating improved liquidity [765]. - Net cash used in investing activities in 2024 was US$8.7 million, primarily for equity investments and property, equipment, and intangible assets [775]. - Net cash provided by financing activities in 2024 was US$103.8 million, mainly from a follow-on public offering [778]. Research and Development - Research and development expenses rose to US$80.1 million in 2024, up from US$63.5 million in 2023, highlighting a focus on technology development [787]. Capital Management - Capital expenditures were US$1.6 million in 2024, indicating a conservative approach to capital investment [781]. - The company has not paid dividends in the past and has no plans to do so in the foreseeable future, dependent on subsidiary earnings and regulatory conditions [783]. Financial Reporting and Compliance - The consolidated financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions affecting reported amounts of assets, liabilities, revenues, and expenses [790]. - Significant judgment is required in determining income tax expense based on tax laws in various jurisdictions, impacting the effective income tax rate [792]. - A valuation allowance is recorded to reduce deferred tax assets, requiring significant judgment regarding past and projected financial performance [793]. Risk Management - The company has not utilized any derivative financial instruments for currency risk hedging, monitoring exchange rate movements closely [762].

Summary of the Earnings Conference Call Company Overview - The conference call was held by U.S. Tiger Securities, led by CEO Mr. Huang Lei and financial controller Mr. Kenny Zhao, discussing the 4th quarter and annual financial results for 2024 [1][2]. Key Financial Highlights - **Net Profits**: The parent company's net profits for 2023 were $60.7 million, an increase of 86.5% year-over-year, while non-GAAP net profits were $70.5 million, up 65% [2][3]. - **4th Quarter Performance**: In Q4, net profits were $28.1 million (GAAP) and $30.5 million (non-GAAP), reflecting increases of 58% and 51.7% quarter-over-quarter [2][3]. - **Total Revenue**: Q4 total revenue reached $124.1 million, a 22.8% increase quarter-over-quarter and a 77.3% increase year-over-year. Full-year revenue was $391.5 million, up 43.7% from 2023 [2][6]. - **Profit Margins**: Non-GAAP net profit margin rose from 20% in Q3 to 25% in Q4 [2][3]. User Growth and Client Assets - **New Users**: 59,000 new recording users were added in Q4, a 17.2% increase from the previous quarter, exceeding the annual target of 150,000 new users [3][4]. - **Client Assets**: Total client assets reached $4.17 billion at the end of Q4, with net asset inflows of over $1.1 billion, 80% from retail users [3][4]. - **Market Performance**: Hong Kong's client assets grew by about 50% quarter-over-quarter, making it the third-largest market for the company [4][17]. Business Operations and Strategy - **Investment Banking**: The company underwrote 14 U.S. and Hong Kong ICOs in Q4, totaling 44 for the year [6]. - **Product Development**: The company upgraded its AI investment assistant to Tiger AI and received licenses for its cryptocurrency platform, YAX, making it a licensed virtual asset trading platform in Hong Kong [5][16]. - **Focus on Quality**: For 2025, the company aims to maintain a target of 150,000 new users while prioritizing user quality and ROI [9][10]. Market Dynamics and Challenges - **Cost Increases**: Employee compensation and benefits rose by 41% year-over-year due to increased headcount and bonuses [7][11]. - **Tax Rate Increase**: The effective tax rate increased from 14% in Q3 to 25% in Q4, attributed to higher profits from the U.S. market [11][12]. - **Market Volatility**: Despite fluctuations in the U.S. stock market, trading volumes remained steady, with higher daily trading volumes noted in March compared to earlier months [12][13]. Conclusion - The company demonstrated strong financial performance in 2024, with significant growth in user base, revenue, and profitability. The focus on enhancing user experience through product upgrades and maintaining high-quality user acquisition is expected to drive future growth. The management remains optimistic about navigating market challenges while leveraging opportunities in both traditional and virtual asset markets [1][5][17].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [8][16]. Core Insights - The company reported a total revenue of $390 million for 2024, reflecting a year-on-year growth of 43.7%, and a Non-GAAP net profit of $70 million, which is a 65% increase compared to the previous year [1]. - In Q4 2024, the company experienced a significant increase in commission income, which reached $56 million, a year-on-year growth of 154.9%, driven by a 182% increase in stock trading volume to $55.5 billion [2]. - The number of new funded clients exceeded expectations, with a total of 1.092 million clients by the end of 2024, marking a 20.7% increase year-on-year [3]. - The company has upgraded its AI investment assistant to TigerAI, enhancing its technological capabilities [5]. - The forecast for Non-GAAP net profit growth is projected at 71% for 2025, with earnings per ADS expected to be $0.78, leading to a corresponding PE ratio of 12.43 [6]. Financial Summary - For 2024, the company achieved a total revenue of $392 million, with projections for 2025, 2026, and 2027 at $517 million, $659 million, and $767 million respectively, indicating growth rates of 32.13%, 27.43%, and 16.39% [13]. - The Non-GAAP net profit for 2024 was $70 million, with estimates of $120 million, $156 million, and $197 million for the following three years, reflecting growth rates of 70.99%, 29.85%, and 25.60% [13]. - The average revenue per user (ARPU) for Q4 2024 was $116.8, showing a year-on-year increase of 48% [3].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company reported a significant increase in total revenue for 2024, achieving a year-on-year growth of 44% to reach $392 million, with net profit rising by 86% to $61 million [1]. - In Q4 2024 alone, total revenue surged by 77% year-on-year to $124 million, with net profit of $28 million, a turnaround from a loss of $1.8 million in the same quarter of the previous year [1]. - The increase in revenue is attributed to heightened trading activity in Hong Kong and U.S. markets, leading to a 72% rise in commission income to $159 million and a 28% increase in interest income to $192 million [8]. Revenue and Profitability - Total revenue projections for the company are as follows: $525 million in 2025, $652 million in 2026, and $776 million in 2027, with respective year-on-year growth rates of 34.1%, 24.2%, and 19% [20]. - The company expects net profit to reach $96 million in 2025, $116 million in 2026, and $137 million in 2027, reflecting growth rates of 58%, 21%, and 18% respectively [20]. Operational Performance - The company experienced a 31% increase in total operating costs and expenses to $252 million in 2024, driven by higher trading volumes and global business expansion [8]. - Key components of the cost increase included a 61% rise in settlement and execution fees, a 21% increase in salary and benefits, and an 80% increase in management and administrative expenses [8]. Market Position and Innovation - The company has introduced several innovative products to enhance user experience, including the launch of a trading account with Cash Boost and the approval of its cryptocurrency platform in Hong Kong [8]. - The company is positioned to expand its overseas market presence and accelerate user growth, indicating a strong long-term growth potential [8].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company reported a significant increase in total revenue for 2024, achieving a year-on-year growth of 44% to reach $392 million, with net profit rising by 86% to $61 million [1]. - In Q4 2024 alone, total revenue surged by 77% year-on-year to $124 million, with net profit of $28 million, a turnaround from a loss of $1.8 million in the same quarter of the previous year [1]. - The increase in revenue is attributed to heightened trading activity in Hong Kong and U.S. markets, leading to a 72% rise in commission income to $159 million and a 28% increase in interest income to $192 million [8]. Revenue and Profitability - The company’s total revenue is projected to grow from $273 million in 2023 to $525 million in 2025, with a compound annual growth rate (CAGR) of 34.1% [1]. - Net profit is expected to increase from $61 million in 2024 to $96 million in 2025, reflecting a growth rate of 58% [1]. - Earnings per share (EPS) is forecasted to rise from $0.02 in 2024 to $0.03 in 2025 [1]. Business Segments - Commission income is anticipated to grow from $159 million in 2024 to $210 million in 2025, while interest income is expected to increase from $192 million to $270 million in the same period [20]. - The company has seen a substantial increase in customer engagement, with the number of funded clients rising to 1.09 million, a 21% increase year-on-year [8]. Cost Structure - Total operating costs and expenses increased by 31% year-on-year to $252 million in 2024, driven by higher trading volumes and global business expansion [8]. - Key cost components include a 61% rise in settlement and execution fees, a 21% increase in salary and benefits, and a 26% increase in commission and market data expenses [8]. Market Position and Innovation - The company is actively enhancing user experience through product innovations, such as the launch of the Cash Boost trading account and the approval of its cryptocurrency platform in Hong Kong [8]. - The integration of AI technology into its investment platform positions the company as a leader in adopting advanced trading solutions [8]. Valuation Metrics - The current market capitalization is approximately $1.8 billion, with a price-to-earnings (P/E) ratio projected to decrease from 29.46 in 2024 to 18.59 in 2025, indicating potential for value appreciation [1][20]. - The report highlights a favorable long-term growth outlook, supported by the company's expansion into overseas markets and user base growth [8].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was US$124.1 million, representing a 22.8% increase quarter-over-quarter and a 77.3% increase year-over-year [9] - Full year total revenue reached US$391.5 million, a 43.7% increase from 2023 [9] - GAAP net income for Q4 was US$28.1 million, and non-GAAP net income was US$30.5 million, reflecting increases of 58% and 51.7% quarter-over-quarter respectively [10] - For the full year, GAAP net income was US$60.7 million, and non-GAAP net income was US$78.5 million, up 86.5% and 65% respectively from 2023 [10][22] - Non-GAAP net profit margin increased from 20% in Q3 to 25% in Q4 [11] Business Line Data and Key Metrics Changes - Commission income grew by 35.8% and interest income by 16.3% compared to the previous quarter [9] - In Q4, 70% of commission revenue came from cash equities, 30% from options, and the remainder from futures and other products [20] - The company underwrote 14 U.S. and Hong Kong IPOs in Q4, bringing the total for the year to 44 [16] Market Data and Key Metrics Changes - Total client assets grew by 2.4% quarter-over-quarter and 36.4% year-over-year, reaching US$41.7 billion [13] - Client assets in Hong Kong increased by about 50% quarter-over-quarter, making it the third largest market in terms of client assets [13] - In Q4, approximately 80% of net asset inflows came from retail users [12] Company Strategy and Development Direction - The company aims to acquire 150,000 new funded clients in 2025, focusing on user quality and ROI rather than just quantity [27] - The company has received licenses to operate as a virtual asset trading platform in Hong Kong, allowing it to offer spot trading and custody services for major cryptocurrencies [46] - The company plans to continue investing in the Hong Kong market to drive growth and attract high-quality users [48] Management's Comments on Operating Environment and Future Outlook - Management noted that the market was very active in Q4, benefiting margin financing and securities lending activities [34] - Despite recent market volatility, the company expects trading volume to remain steady, with an increase in average daily trading volume observed in March [39] - Management expressed confidence in the growth potential of the Hong Kong market, with significant increases in trading volume and commission income [47] Other Important Information - The company added 59,200 newly funded accounts in Q4, a 17.2% increase from the previous quarter, bringing the total number of funded accounts to 1.09 million [11] - The average net asset inflow for newly funded users in Hong Kong was over US$30,000, the highest among all markets [48] Q&A Session Summary Question: How does the company plan to achieve its 2025 guidance for new funded clients? - Management stated that the focus will be on acquiring high net worth users and improving customer quality metrics, maintaining the target of 150,000 new funded users [27] Question: Can you provide a breakdown of new funded clients by region in Q4? - Approximately 60% of new funded users came from Singapore and Southeast Asia, 25% from Greater China, 10% from Australia and New Zealand, and 5% from the U.S. [28] Question: What caused the rise in compensation expenses and the effective tax rate? - The increase in labor costs was attributed to year-end bonuses, and the effective tax rate rose due to higher profits from the U.S. market [34] Question: How will the VATP license contribute to growth in the crypto sector? - The license allows the company to offer spot trading and custody services for major cryptocurrencies, aiming to bridge traditional finance and cryptocurrency [46] Question: What explains the growth in interest income despite a flat micro finance and securities lending balance? - The increase in interest income was due to better rate terms negotiated with local banks and increased demand in the securities lending market [50]