Group 1 - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] - The author maintains a bullish stance on a specific company after evaluating its third quarter financial and operational performance [1] - The service provides a variety of watch lists with monthly updates, particularly emphasizing investment opportunities in the Hong Kong market [1]

UP Fintech Holding Limited (NASDAQ:TIGR) Q4 2024 Earnings Conference Call March 18, 2025 8:00 AM ET Company Participants Aaron Li - Head, IR Wu Tianhua - Chairman and CEO John Zeng - CFO Conference Call Participants Cindy Wang - China Renaissance Emma Xu - Bank of America Securities Hua Fan - CICC Operator Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, all participants are in a listen-on ...

Core Insights - UP Fintech Holding Limited reported record-high financial results for Q4 and full year 2024, with Q4 revenue of US$124.1 million, a 77.3% YoY increase, and full-year revenue of US$391.5 million, a 43.7% YoY increase [1] - Non-GAAP net income for Q4 reached US$30.5 million, up 51.7% QoQ and 2772.5% YoY, while full-year non-GAAP net income grew 65% YoY to US$70.5 million [1] Financial Performance - Q4 revenue was US$124.1 million, marking a 77.3% YoY increase, while full-year revenue reached US$391.5 million, a 43.7% YoY increase [1] - Non-GAAP net income for Q4 was US$30.5 million, a 51.7% QoQ increase and 2772.5% YoY increase, with full-year non-GAAP net income at US$70.5 million, a 65% YoY increase [1] Client Growth - In Q4, UP Fintech added 81,300 new account openings globally, a 70.1% YoY increase, bringing total global accounts to 2.4 million [2] - The company added 59,200 new funded clients in Q4, a 51.4% YoY increase, with total funded clients reaching 1,092,000, up 20.7% YoY [2] Trading Activity - Total trading volume in Q4 increased 142.2% YoY to US$198 billion, supported by active market trading [2] - Net asset inflows from individual and institutional clients reached US$1.1 billion in Q4, while total client assets grew 36.4% YoY to a record US$41.7 billion [2] Market Expansion - The company expanded its global presence, with significant growth in Singapore, Hong Kong, New Zealand, Australia, and the US [3][4] - Singapore remains the largest market, with record trading volume and commission income, increasing 196% and 66% YoY respectively [4] Product and Service Innovations - UP Fintech launched new trading features and tools, including a 24-hour trading option for US stocks and enhancements for options trading [10] - The company introduced TigerGPT, an AI-powered investment assistant, which saw a 1,000% increase in user interactions post-upgrade [11] Wealth Management - Wealth management assets under custody (AUC) rose 98.3% YoY, with a wealth user penetration rate of 23% among newly funded accounts in Q4 [13] - The company introduced new financial products tailored to high-net-worth clients, enhancing its wealth management offerings [13] Investment Banking - UP Fintech participated in 8 US IPO projects and underwrote 9 Hong Kong IPOs in Q4, ranking fifth in the Hong Kong IPO underwriting rankings [15] - The investment banking business saw a 33% YoY increase in the number of underwritings [15] Recognition and Awards - The company received multiple industry accolades, including recognition as a leading broker in Hong Kong and Australia [6][7]

Core Viewpoint - UP Fintech Holding Limited reported significant growth in both financial and operational performance for the fourth quarter and full year of 2024, achieving record revenues and net income [2][6]. Financial Highlights for Fourth Quarter 2024 - Total revenue reached US$124.1 million, a sequential increase of 22.8% and a year-over-year growth of 77.3% [2][6]. - Net income attributable to ordinary shareholders was US$28.1 million, representing a quarter-over-quarter growth of 58.0% and a turnaround from a net loss of US$1.8 million in the same quarter of the previous year [2][7]. - Non-GAAP net income attributable to ordinary shareholders was US$30.5 million, a quarter-over-quarter increase of 51.7% and a year-over-year increase of 2772.5% [2][7]. Financial Highlights for Fiscal Year 2024 - Total revenue for the year amounted to US$391.5 million, a 43.7% increase from 2023 [7][18]. - Net income attributable to ordinary shareholders for the year was US$60.7 million, an increase of 86.5% compared to the previous year [7][24]. - Non-GAAP net income for the year was US$70.5 million, a 65.0% increase from 2023 [7][25]. Operating Highlights as of Year End 2024 - The total number of customers with deposits reached 1,092,000, a 20.7% increase year-over-year [3][7]. - The total account balance rose to US$41.7 billion, reflecting a 36.4% year-over-year increase [7][19]. - The company added 59,200 customers with deposits in the fourth quarter, exceeding its yearly guidance of 150,000 [3][7]. Selected Operating Data for Fourth Quarter 2024 - The number of customer accounts increased to 2,449,300, up from 2,195,700 in the same quarter of the previous year [5][39]. - Trading volume reached US$198.0 billion, a significant increase from US$81.8 billion in the same quarter of the previous year [5][39]. - The number of options and futures contracts traded was 18,926.3 thousand, up from 8,044.5 thousand in the same quarter of the previous year [5][39]. Product and Service Developments - The company launched a licensed cryptocurrency trading platform in Hong Kong and upgraded its AI investment assistant, TigerGPT, to TigerAI, integrating leading AI models [4][34]. - The corporate business performed well, underwriting 14 U.S. and Hong Kong IPOs in the fourth quarter, totaling 44 for the year [5][34].

Core Viewpoint - UP Fintech Holding Limited will report its financial results for Q4 and the full year of 2024 on March 18, 2025, before the U.S. market opens [1] Group 1: Financial Reporting - The financial results announcement will occur before the U.S. market opens on March 18, 2025 [1] - An earnings conference call is scheduled for 8:00 AM U.S. Eastern Time on the same day [2] Group 2: Conference Call Details - Participants must preregister online to receive dial-in numbers for the conference call [3] - A registration link is provided for participants to RSVP for the earnings conference call [4] - Confirmation emails will include participant dial-in numbers and personal PINs, with a recommendation to dial in 10 minutes prior to the call [5] Group 3: Company Overview - UP Fintech is a leading online brokerage firm targeting global investors, offering a mobile and online trading platform [6] - The company employs a "mobile first" strategy to enhance user experience and attract new customers [6] - Services include trade order placement, margin financing, IPO subscription, and investor education among others [6]

Group 1 - The core focus of the research service is on identifying Asia-listed stocks that exhibit a significant gap between their market price and intrinsic value, particularly emphasizing deep value balance sheet bargains and wide moat stocks [1] - UP Fintech Holding Limited (NASDAQ: TIGR) is rated as a Buy, with trading volume and newly funded accounts more than doubling year-over-year in Q3 2024, indicating strong growth [1] - The shares of UP Fintech are considered undervalued, as the company's earnings multiple is lower compared to its peers [1] Group 2 - The research service provides a range of watch lists with monthly updates, targeting value investors interested in the Hong Kong market [1] - The author of the service is focused on finding hidden champions and high-quality businesses that can be purchased at a discount [1]

Investment Rating - The investment rating for the company is "Cautious Recommendation" [9] Core Views - The company reported a record high total revenue of $101 million in Q3 2024, representing a year-over-year increase of 44%, and a net income of $85.4 million, up 47% year-over-year [1] - The strong growth in brokerage commission income, which reached $41.2 million (41% of total revenue), was driven by a significant increase in trading volume, with total trading volume at $163 billion, a 103% year-over-year increase [2] - The company has successfully exceeded its annual target of adding 150,000 net new funded clients ahead of schedule, with total client assets reaching $40.8 billion, a 116% year-over-year increase [4] Summary by Sections Financial Performance - Q3 2024 total revenue was $101 million, with a net profit of $17.8 million, yielding a net profit margin of 18% [1][3] - Non-GAAP net profit was $20.1 million, with a Non-GAAP net profit margin of 20% [3] Revenue Breakdown - Brokerage commission income grew by 78% year-over-year to $41.2 million, driven by a total trading volume of $163 billion [2] - Interest income was $48 million, accounting for 48% of total revenue, reflecting a 25% year-over-year increase [2] - Other income, including IPO distribution revenue, increased by 70% year-over-year to $9.1 million [2] Cost Management - Total expenses included $3.5 million in execution clearing fees (up 48% year-over-year) and $28.8 million in employee compensation (up 11% year-over-year) [3] - Marketing expenses rose by 59% year-over-year to $8.2 million, with a customer acquisition cost (CAC) of $163 [3] Client Growth and Assets - The company added 51,000 net funded clients in Q3 2024, a 105% year-over-year increase, bringing total funded clients to 1.033 million [4] - Client total assets reached $40.8 billion, marking a continuous increase for eight consecutive quarters [4] Outlook - The company anticipates continued strong performance in Q4, with October showing record highs in trading volume and commission income [5] - The outlook remains positive, with expectations for sustained momentum in trading volume and client inflows [5]

Investment Rating - The report does not explicitly state the investment rating for Tiger Brokers (TIGR) [1][2] Core Views - Tiger Brokers achieved record-high revenue and a 3-year high in net income in Q3 2024, with total revenue reaching $101 million (yoy +44%) and net income of $17.8 million (yoy +34%) [1] - The strong growth in trading volume drove a significant increase in brokerage commission income, which accounted for 41% of total revenue at $41.2 million (yoy +78%) [1] - Interest income, primarily from margin financing, contributed 48% of total revenue at $48 million (yoy +25%) [1] - The company exceeded its annual target of 150,000 new funded clients, with total client assets reaching a record $40.8 billion (yoy +116%) [1] - Q4 trends are positive, with October commission income hitting a new high and trading volume in November showing strong performance [1] Revenue Breakdown - Brokerage commission income: $41.2 million (41% of total revenue, yoy +78%) [1] - Interest income: $48 million (48% of total revenue, yoy +25%) [1] - Margin financing service fee income: $2.8 million (3% of total revenue, yoy -15%) [1] - Other income: $9.1 million (9% of total revenue, yoy +70%) [1] Cost and Profit Analysis - Execution and clearing fees: $3.5 million (yoy +48%) [1] - Employee compensation and benefits: $28.8 million (yoy +11%) [1] - Occupancy, depreciation, and amortization: $2.2 million (yoy -3%) [1] - Communication and market data fees: $9.7 million (yoy +28%) [1] - Marketing expenses: $8.2 million (yoy +59%) [1] - General administrative expenses: $6.9 million (yoy +27%) [1] - Net profit margin: 18% (GAAP), 20% (Non-GAAP) [1] Client Metrics - Net new funded clients in Q3: 51,000 (yoy +105%) [1] - Total funded clients: 1.033 million (yoy +19%) [1] - Total client assets: $40.8 billion (yoy +116%) [1] Market Performance and Outlook - Q3 total trading volume: $163 billion (yoy +103%) [1] - October trading volume and commission income reached record highs, exceeding twice the average monthly levels in the first half of the year [1] - November trading activity showed strong performance, with order volume on November 6 (US election day) up 48% compared to October averages [1]

Financial Data and Key Metrics Changes - UP Fintech Holding Limited reported its third quarter 2024 earnings, with financial results available on their IR website [3] - The company will provide a detailed discussion of financial results during the call [4] Business Line Data and Key Metrics Changes - Specific details regarding the performance of various business lines were not provided in the available content [5] Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the provided content [5] Company Strategy and Development Direction and Industry Competition - The company will discuss corporate highlights and business operations during the call, indicating a focus on strategic direction [4] Management's Comments on Operating Environment and Future Outlook - Management will provide insights on the operating environment and future outlook during the Q&A session following their remarks [4] Other Important Information - The conference call is being recorded, and participants are in a listen-only mode [1] Q&A Session All Questions and Answers - No specific questions or answers from the Q&A session were included in the provided content [5]

NEW YORK, Nov. 12, 2024 /PRNewswire/ -- UP Fintech Holding Limited (NASDAQ: TIGR) ("UP Fintech" or the "Company"), announced its unaudited financial results for the third quarter ended September 30, 2024. UP Fintech reported record revenue of US$101.1 million in the third quarter, representing a 15.6% increase quarter-over-quarter (QoQ) and a 44.1% increase year-over-year (YoY). Non-GAAP net income attributable to UP Fintech shareholders was US$20.1 million, up 286.5% QoQ and 25.6% YoY. The Company added 60 ...