UP Fintech Holding Limited Reports Unaudited First Quarter 2024 Financial Results

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]