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UP Fintech Holding(TIGR) - 2025 Q1 - Earnings Call Transcript
TIGRUP Fintech Holding(TIGR)2025-05-30 13:00

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 reached 122.6million,up55.3122.6 million, up 55.3% year over year [8] - Total trading volume reached 217 billion, driving commission income to a record high of 58.3million,morethandoublingyearoveryear[8]−Netinterestincomeincreasedto58.3 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 36million,reflectingan18.336 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 5.2billion,an89.45.2 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]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusingonenhancingproductofferingsandimprovinguserexperience,includingtheupgradeofTigerGPTtoTigerAI[12]−ThecompanyaimstodeepenitspresenceintheHongKongmarket,whichhasbecomeakeystrategicarea[12]−ThecompanyplanstocontinueinvestinginbothtalentandmarketinginHongKongtodeliverasuperiorproductexperience[43]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinthesecondquarter,notingasignificantpickupinmarketvolatilityandtradingvolume[24]−Clientassetshavesetanotherrecordhigh,withnetassetinflowremainingstrong[25]−Thecompanyexpectscustomeracquisitioncoststoriseduetoincreasedinvestmentinhigh−valuemarketslikeHongKong[28]OtherImportantInformation−ThecompanyenrolledfourHongKongIPOsinthefirstquarter,includingChipandGoandNanshanAluminum[14]−Theaveragecustomeracquisitioncostisexpectedtorisetoaround30,000 [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 1to1 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]