UP Fintech Holding Limited (NASDAQ:TIGR) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings report shows strong financial performance with a 77.3% increase in quarterly revenue and a 58% increase in net income, coupled with optimistic guidance. Despite increased expenses, the strategic focus on high-quality user acquisition and market expansion, especially in Hong Kong and the U.S., is promising. The Q&A section reveals positive sentiment towards the company's market strategy and growth potential in the crypto sector. However, unclear management responses on interest income growth could pose minor concerns. Overall, the strong financial metrics and strategic initiatives suggest a positive stock price movement.
Key Financial Performance
Total Revenue (Q4 2024) US$124.1 million, a 77.3% increase year-over-year due to expanded client base and active market environment.
Total Revenue (Full Year 2024) US$391.5 million, a 43.7% increase from 2023.
GAAP Net Income (Q4 2024) US$28.1 million, up 58% quarter-over-quarter.
Non-GAAP Net Income (Q4 2024) US$30.5 million, up 51.7% quarter-over-quarter.
GAAP Net Income (Full Year 2024) US$60.7 million, an increase of 86.5% from 2023.
Non-GAAP Net Income (Full Year 2024) US$70.5 million, an increase of 65% from 2023.
Net Asset Inflows (Q4 2024) US$1.1 billion, with approximately 80% from retail users.
Total Client Assets (Q4 2024) US$41.7 billion, a 36.4% increase year-over-year.
Total Operating Costs (Q4 2024) US$73.1 million, an increase of 39% from the same quarter of last year.
Employee Compensation and Benefits Expense (Q4 2024) US$37.2 million, an increase of 41% year-over-year due to an increase in global headcounts.
Marketing Expense (Q4 2024) US$9.5 million, increased 64% year-over-year due to increased marketing spending.
Communication and Market Data Expense (Q4 2024) US$11.8 million, an increase of 38% year-over-year due to an increase in user base and IT related services.
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Operating Highlights
AI Investment Assistant Upgrade: The AI investment assistant, TigerGPT, has been upgraded to TigerAI, integrating leading AI models to enhance user experience.
Cryptocurrency Platform Licensing: The cryptocurrency platform, YAX Hong Kong, received licenses from Hong Kong SFC for Type 1 and Type 7, making it a licensed virtual asset trading platform.
Client Asset Growth in Hong Kong: Client assets in Hong Kong increased by about 50% quarter-over-quarter, making it the third largest market in terms of client assets.
New Funded Accounts: In Q4, 59,200 new funded accounts were added, a 17.2% increase from the previous quarter, with a total of 187,400 for the year.
Revenue Growth: Total revenue for Q4 was $124.1 million, a 22.8% increase quarter-over-quarter and a 77.3% increase year-over-year.
Profitability Improvement: GAAP net income reached $28.1 million in Q4, reflecting a 58% increase quarter-over-quarter.
Investment Banking Performance: Underwrote 14 U.S. and Hong Kong IPOs in Q4, totaling 44 for the year.
Focus on User Quality: Targeting 150,000 new funded clients in 2025 while prioritizing user quality.
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Risk or Challenges
Regulatory Issues: The company has received licenses from the Hong Kong SFC for Type 1 and Type 7, making it a licensed virtual asset trading platform in Hong Kong, which may involve ongoing compliance and regulatory challenges.
Competitive Pressures: The company is operating in a highly competitive market, particularly in the U.S. and Hong Kong, which may impact market share and profitability.
Supply Chain Challenges: Increased trading volume has led to higher execution and clearing expenses, indicating potential supply chain challenges in managing operational costs.
Economic Factors: The company noted slight impacts from mark-to-market losses, which could be indicative of broader economic conditions affecting client assets and trading activities.
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Guidance & Outlook
New Funded Clients Target for 2025: UP Fintech targets 150,000 new funded clients in 2025, prioritizing user quality.
Client Assets Growth: Total client assets grew to $41.7 billion, with a 36.4% year-over-year increase.
AI Investment Assistant Upgrade: The AI investment assistant, TigerGPT, was upgraded to TigerAI, integrating leading AI models.
Licensing Expansion: The cryptocurrency platform YAX Hong Kong received licenses for Type 1 and Type 7 from Hong Kong SFC.
Investment Banking Performance: Underwrote 14 U.S. and Hong Kong IPOs in Q4, totaling 44 for the year.
Revenue Expectations for 2025: Total revenue for Q4 2024 was $124.1 million, with full-year revenue reaching $391.5 million, a 43.7% increase from 2023.
Profitability Outlook: GAAP net income for 2024 was $60.7 million, with a non-GAAP net income of $70.5 million, reflecting significant growth.
Client Asset Inflows: Net asset inflows for Q4 were $1.1 billion, with 80% from retail users.
Profit Margin Improvement: Non-GAAP net profit margin increased from 20% in Q3 to 25% in Q4.
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Shareholder Return Plan
Share Buyback Program: None
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Key Q&A
Q:In 2025 you are targeting to acquire 150,000 new founding clients, which is the same as 2024 guidance. However, new funded clients you acquired in 2024 was much higher than the guidance. How do we race through these guidance again in 2025, and the mixed contribution from each market?
A:In 2025, our focus on customer acquisition will prioritize user quality and ROI. We plan to expand our effort to acquire high net worth user base, rather than just pursuing user number growth. Therefore, we are setting a target of 150,000 newly funded users maintaining the same level as in 2024. However, we do expect to see the improvement in customer quality metrics, such as the average grant assets of the ARPU for this new user in 2025. Regarding the regional mix, we anticipate that the overall situation will pretty much in line with the actual breakdown in 2024 with Greater China region being the primary contributor. In 2025, while ensuring the quality of new users, we have higher expectation for growth in Hong Kong and U.S. market, and we will consider increasing our marketing input if the market condition is favorable.
Q:Could you give us new funded clients’ breakdown by regional in fourth quarter?
A:In Q4 about 60% of new funded users came from Singapore and Southeast Asia, about 25% were from Greater China area, well around 10% from Australia and New Zealand market, and the remaining 5% came from the U.S. market.
Q:Your compensation expenses have risen more than anticipated, and while there has been a notable increase in the effective tax rate sequentially. What are the reasons for this?
A:The rise in labor cost is mainly due to – we added extra employee incentive at the end of the year, which increased the year-end bonus accrual. The effective tax rate increased from 14% in the third quarter to 25% in the fourth quarter, primarily due to the increase in profit coming from the U.S. market, where tax rate is relatively higher.
Q:What’s your thoughts on recent volatilities in the U.S. market on your business?
A:From our perspective, as a broker-dealer, we value more on velocity. We believe that some volatility triggered by economic, or political events, or headline news actually drive trading volume. In the first three weeks of March, the average daily trading volume on our platform, for both Hong Kong and U.S. cash equity, has been higher than what we saw in the first two months of this year, and in the Q4 of last year.
Q:Since we have gained the VATP license, how will the license contribute to our growth in the crypto sector?
A:With those license, we can now legally offer spot trading and custody service for major cryptocurrencies like Bitcoin and Ether, as well as tokenized assets. By integrating our crypto service with our broker-dealer entity, we can create an ecosystem combining Web2 and Web3 assets.
Q:What causes the inconsistent trend in interest income growth despite flat micro finance and securities lending balance?
A:Although the margin financing balance as a whole remained flat quarter-over-quarter, but there was a notable shift in the mix in the fourth quarter. High-yield segments such as margin and hard-to-borrow securities lending, we saw an increase in balance, compared to the previous quarter, while the balance for lower-yield business like treasury management experienced quarter-over-quarter decrease.
Q:Review of Unclear Management Responses
A:Management's response to the question about the inconsistent trend in interest income growth lacked clarity, as it did not provide specific data or detailed explanations on how the balance shift directly impacted the overall income.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI Inc
AI investment
AI model
Brokers Hong
CEO Mr
CFO Mr
Chairman CEO
ESOP client
Geping Pony
Hong Kong
IPOs Mao
Inc WeRide
Inc number
Kong AI
Kong IPOs
Mr remark
Tiger Brokers
Type
client asset
end
experience
high
income
increase
investment assistant
investor
license
market
number account
platform
product
result statement
term client
user
TIGR Transcript
UP Fintech Holding Limited (TIGR) Q3 2025 Earnings Call Transcript
Positive12-4
The company demonstrated strong growth in user base, client assets, and market expansion, particularly in Singapore and Hong Kong. Despite increased expenses, the focus on high-value users and robust net asset inflows are promising. The Q&A revealed optimism in market trends and sustainable cost reductions, while the lack of specific guidance on Hong Kong's profit contribution was a minor concern. Overall, the positive financial metrics and optimistic outlook suggest a positive stock price movement over the next two weeks.
UP Fintech Holding Limited (TIGR) Q2 2025 Earnings Call Transcript
Positive8-27
The earnings call revealed strong financial performance, with record revenue, profit margin expansion, and significant net income growth. Despite increased expenses, the company showed robust client asset growth and strategic market expansions, particularly in digital assets. The Q&A highlighted promising developments in investment banking and crypto markets, though some uncertainties remain. Overall, the positive financial metrics and strategic advancements outweigh concerns, suggesting a positive stock price movement over the next two weeks.
UP Fintech Holding Limited (TIGR) Q1 2025 Earnings Call Transcript
Positive5-30
The earnings call presents strong financial performance with significant revenue and net income growth, despite increased operating costs. The Q&A highlights record trading volumes and client asset inflows, with management optimistic about market opportunities in Hong Kong. However, increased marketing expenses and execution costs suggest aggressive growth strategies. No share repurchase program was announced, but the overall sentiment remains positive due to strong financial metrics and optimistic guidance. The lack of market cap information limits precise impact prediction, but the positive outlook suggests a 2% to 8% stock price increase.
UP Fintech Holding Limited (NASDAQ:TIGR) Q4 2024 Earnings Call Transcript
Positive3-19
The earnings report shows strong financial performance with a 77.3% increase in quarterly revenue and a 58% increase in net income, coupled with optimistic guidance. Despite increased expenses, the strategic focus on high-quality user acquisition and market expansion, especially in Hong Kong and the U.S., is promising. The Q&A section reveals positive sentiment towards the company's market strategy and growth potential in the crypto sector. However, unclear management responses on interest income growth could pose minor concerns. Overall, the strong financial metrics and strategic initiatives suggest a positive stock price movement.
TIGR Report
Frequently Asked Questions
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
