UP Fintech Holding(TIGR) - 2021 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $60.8 million, an increase of 60% year-over-year and flat quarter-over-quarter [6][14] - Non-GAAP net income was $5.3 million, an improvement from the loss in the previous quarter [6] - Total client assets reached $20.6 billion, up 88% year-over-year but down 14% from the previous quarter [6] Business Line Data and Key Metrics Changes - Commission revenue for Q3 was $33.5 million, a 72% increase year-over-year, with an 8% increase quarter-over-quarter [13] - Interest-related income was $20.1 million, up 105% year-over-year and 5% quarter-over-quarter [13] - Underwriting revenue was $7.2 million, down 19% year-over-year and 30% quarter-over-quarter due to a weaker IPO market [14] Market Data and Key Metrics Changes - The company added 82,900 new accounts in Q3, with over 80% from outside Mainland China [5] - Total funded accounts reached 612,000, tripling from the same period last year [5] Company Strategy and Development Direction - The company is focusing on international expansion, having obtained a Hong Kong broker-dealer license and a self-clearing depository license in Singapore [7][26] - Plans to enhance user acquisition in Hong Kong and Singapore, with a focus on institutional business and retail marketing [31][32] - The company aims to exceed 1 million total funded accounts in the next year [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the internationalization strategy, noting that user acquisition remains strong despite regulatory challenges [20][22] - The company is monitoring market conditions closely to adjust marketing strategies and user acquisition efforts [28] Other Important Information - The company has obtained 46 licenses across various regions, including Hong Kong, Singapore, New Zealand, the U.S., and Australia [8] - The firm is applying for cryptocurrency trading licenses in the U.S. and Singapore to expand its service offerings [12] Q&A Session Summary Question: Current regulatory environment and its impact on business - Management emphasized compliance with KYC and AML procedures and readiness to adapt to new regulations [20] Question: Update on Q4 operations and user acquisition - Management noted a small net outflow following regulatory news, but user acquisition has returned to normal levels [22] Question: Key regions of focus for customer acquisition - The focus will be on Singapore and Hong Kong, with plans to ramp up trading infrastructure and marketing efforts [26][28] Question: Strategy for user acquisition in Hong Kong - The strategy includes targeting institutional investors and gradually moving to self-clearing for Hong Kong securities [31][32] Question: Development of the underwriting business - Management acknowledged short-term headwinds in underwriting but remains committed to leveraging the Hong Kong license for growth [34]