UP Fintech Holding Limited (TIGR) 27 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holdings Limited Third Quarter 2023 Earnings Conference Call. [Operator Instructions] I must advise you that this conference is being recorded today, November 27, 2023.

I'd now like to hand the conference over to your first speaker today, Mr. Aron Lee, the Head of IR. you. Thank ahead. go Please

is Hello, call thank Limited's today. release as today XXXX operator. at IR us as ir.itigerup.com third for for earnings well and earlier distributed the UP services. was on everyone, you, our you website and GlobeNewswire joining quarter available Thank Fintech Holding

give business Q&A will the then operations discuss Securities; corporate Officer; to They Zhao, UP Lei, an financial will Chief available during our Zeng, Financial questions Financial session Mr. will Huang Zeng today On Mr. Wu that and Tianhua, answer overview John the from of your call Qingli Chairman be Mr. Wu both follows of and U.S. our Controller. highlights. their Mr. Tiger CEO discuss results. are our Fintech and Mr. Chief Executive Officer; Mr. remarks.

Act The any Now we Securities within meaning safe from of statements the forward-looking in to those of differ actual are materially results statements. about Reform XXXX. let the Private statements me make contain factors could the of contained cover U.S. cause forward-looking A number harbor. to Litigation

required please XXXX, information to to furnished on could any about factors statements, results applicable Form update obligation on We actual materially under our Form as from and law. forward-looking April XX, our more filed those annual the today, no XXF forward-looking cause November differ X-K in statements, XXXX. undertake For to that refer report except XX,

please your by English Mr. Chairman will followed Chinese, will Mr. in Chief It Wu, make which pleasure is Executive Officer, introduce my Wu go Mr. remarks. Wu. now and to with our be ahead translation. remarks

[Foreign Language]

Brokers the you Thank Conference XXXX joining [Interpreted] Earnings Hello, Tiger Third Quarter everyone. for Call.

we saw and in In interest-related income. the commission third both quarter, improvement

of and X.X% As XX total year-over-year. an was USD XX.X% quarter-over-quarter revenue increase million, a result,

and same income up UP slight of income line, approximately Non-GAAP we UP from the last to of USD this attributable net attributable XX a quarter USD million, last On million, from previous quarter see quarter X.X% quarter the increase increase of the year. year. more of leverage, to of same from the bottom an XX.X started net second to Xx XXX% Fintech was was year, that operating as Fintech

are full a in all quarters XXXX. X this line Total XXXX and X consistent see were glad already first We company's the year non-GAAP year to income net bottom growth this income the million, of non-GAAP quarter-over-quarter the USD quarters combined of for exceeding XX net year. of

adaptable different regulatory We are confident be in to and framework. market environments in our model business

funding of XX% quarter, In added total year the XX,XXX quarter the funded the accounts first in of third funded this the X new of a representing compared XXX,XXX, reached we number growth end Total XX,XXX. quarter quarters to number third of over accounts, year. new at same the to last bringing of the accounts of

increased XX.X total of from X.X current quarter by neutralizing remained and terms reaching of X.X% current net in assets, After billion asset billion. mark-to-market In the quarter. the the assets in over year-over-year, USD strong, inflow impact total XX.X% third inflow loss, quarter-over-quarter with USD this trend

our inflows see clients leading previous and the local position attract from solidify This we average a were in the cohort to Singapore of and net Singapore, asset terms high-quality from market, new strong. similar and quarter in local newly asset In our in USD XX,XXX, Specifically ability users approximately remain net stable Singapore market. acquired inflows users demonstrates quarterly the inflow trend in groups. our the in of net third

traders feature. the which quarter, key believe the long-term opportunities. on the their Community Sparks trading the platform and investment enhance is to our add we for can experience, continue platform third introduced new Tiger best-performing follow ideas success. Trading to our We our products leverage to on user In Users

dollar Hong our this Wealth and Wealth the in fund following Singapore. U.S. We in Management launching money platform of earlier we feature to business, on anticipate launch Kong dollar the Additionally, Management on new for market of added Treasury year, Hong Tiger recently December. Kong U.S. this users

total increased year-over-year. Our well. ESOP continues and the in end new by served X XX% business, clients including of ESOP to perform XX Hong added third XXXX, to XXX we number third quarter, U.S. the In Kong in we third banking, clients bringing In the XB our and business quarter, investment Earlyworks underwrote of IPOs for quarter the the of Keep.

Now financials. invite over John, our I CFO, like to our go would to

Hello, everyone. Thanks, Tianhua and Aron.

our Let All this dollar. Total for Both third and million income quarter-over-quarter and income revenues me interest-related quarter, sequential X.X% increased were are performance financial U.S. $XX.X a increase year-over-year. the saw numbers quarter. through this XX.X% go in quarter. commission

equities, from this comes rest was equity options, slightly bps XX% decreased comes quarter. Cash XX% the about revenue, X.X futures other rate products. cash and quarter, take Within last from from commission and from

Hong with Now from Interest XX% to on year, hike. self-clearing decreased expense the period primarily same from of $XX.X securities. clearing million, last in cost. last $X.X rate Execution more XXX% same year, million, of the line quarter U.S. and Kong due increased was in the expenses and were

as expense an to headcounts. $X.X declaration Depreciation office $XX and an million, of X% been of to depreciation benefits due expense XX% Employee increase completed. year-over-year the decreased in the million expense compensation headquarters global has increase were

as prudent market the third increase and of increase $X.X we quarter, XX% quarter. expense million, were $X.X Marketing the an our user base. due year-over-year remain in XX% this with approach in data to million were marketing expense Communication decreased year-over-year,

in the an year-over-year, million, fees. $XX.X of last administrative professional service expense and operating from year. of increase were XX% million, Total due $X.X increased were quarter to slightly X.X% expense General increase same

same and the the previous quarter GAAP up and of quarter the non-GAAP year. slightly and of was previous net about both X% last versus Xx X% net GAAP $XX from increased result, last increased same line was bottom quarter million, XXX% quarter-over-quarter a income and million, the $XX.X Non-GAAP of As increased year. year-over-year. that from quarter income

please the for line Operator, have Thanks. Q&A. open we concluded our Now presentation.

from comes CICC. from question the First Instructions] of Han line Pu [Operator

[Foreign Language]

[Interpreted] I questions. have X

could us line breakdown we year. you in profitability QX? Do have please give improvement bottom balance original positive for accounts we funded plans in in the markets? the and seen secondly, how new do have And the of Strategically, Firstly, this growth new the the you XXXX? any

[Foreign Language]

third the Among States XX% around the quarter, Kong, accounted first new in Australia [Interpreted] United Singapore. question, XX% region and So contributions approximately funded from and for The Zealand for accounts from came New the the each. Hong

year, first million. of bottom USD this line XX X quarters accumulating the over We've seen quarterly growth on throughout

end the the annual funded X.X% now, third by guidance of of billion. have and increased [Audio total asset year-over-year, already quarter of As Gap], has number clients XX.X% reaching XX.X new exceeded current of quarter-over-quarter at the USD our and

improved while under and base custody. our profitability So user assets growing have we

user in of clearing and on the growth can goes hand-in-hand the run. with with in believe of one help is growth expenses, cost I profitability, industry. a for base how lowest assets especially savings cap the the are profit long much some client our example, already costs, There the variable

increase high-quality So total the more users, get to to still key platform on more acquire income. revenue is and net access

why ourselves, and costs as a keep incur to question we we achieve subsidiaries. It's more it's period a question different you evaluate we important asked and CAC. asking that also use That's like payback our to leverage better how great ROI metrics if operating

As our of market profit sustained will continue be existing to now, in driving with focus investment. the on growth manageable

markets aspects evaluate for can pace company's all of carefully the want expansion, we Thank So will future of enter. build before determining new you. the direction we to we company's resources buffer and

Next line from up, we Wang have from China the Cindy Renaissance.

[Foreign Language]

X have I questions. [Interpreted]

the they coming to the start is question mid-XXXX. cycle rate is cut and market, rate interest hike end, First the Fed that is to in

So or this maintain operations you scenario, strategy adjust profit based how on even current and margin? higher to the would

quarter the is blended down sequentially. the rate in question second take third The was

the reasoning what's behind So it?

[Foreign Language]

I'll translate hedge to velocity velocity about in go model nature go answer Okay. first think broker-dealer in business rate. When down, is trading the good versa. general interest [Interpreted] up, vice for with tend trading commission a thing and question. We his risks

In our our fairly of interest income stable interest on interest Therefore, limited. we the spread. a from chunk securities interest lending, income financing where be of business, rate costs comes impact and a will big earn margin relatively

and we course, adjust based strategy also of And product on our operational different will market backdrop.

hikes, market example, rate the year Fed U.S. we yield For investments more products and Treasury. U.S. funds, dollar with money such as introduced for dollar in the in past Hong Kong future and

But and equity financing, cuts, margin income also business. activity lending the market investments. assets more securities shift interest investment rate from generated improves fixed treasury future, to with likely income will more as in We client through to management interest

on investor education catered We conditions. will roll and out market based promotions more

growth generate as cuts a line. more So future increased our on still overall, activity to signal, rate effect market likely is consider interest we positive given top beta

[Foreign Language]

to like in third was the [Interpreted] slight trading So due portion accounted quarter. Nvidia, high volume rate decrease price blended in Tesla our names a the of for big and take

So came of remained shares the the same. our Thanks. of even traded. by Since outpaced increase commission number increase price shares, we share last rate those versus in in take quarter, pricing names the the of number charge down blended slightly

the from line Kuang comes question next Alan The Citibank. of from

[Foreign Language]

up Tiger growth Citi the of in one seen we [Interpreted] And Recently, market and share with Singapore X I market. paying about This quarter. customer momentum Alan Research. have our the today. from during is is have the questions first one third decent Singapore building growth gain competitors

us As the comments Singapore have management forward-looking the give growth and if market latest on or update latest basis, some on strategy Singapore on local market, any Tiger's for core color a the is trends, market? management wondering could share

management And trading if the license. on crypto application? is updates question wondering the any second license I'm about have

[Foreign Language]

Okay. [Interpreted]

market Asian CAC, in throughout first X this the year. in USD those quarters, Thanks compound on in key Asian double-digit the for So low of XXX to foundation us solid quarters in the success is a and bottom our our brings X brand for we've regarding first advantage which seen Tiger. first Singapore has the Southeast the for growth question line The a future boosted market. Singapore. has average entire Singapore Tiger's business reputation Southeast into been market, profit staying driver the entry Also, below

in inflows showed the around third our importantly, Singapore around a existing clients played in In strong billion. from part similar reaching its terms the USD our asset market quarter net USD a in big net newly average with trend the users third momentum XX,XXX, inflows. inflow X.X with it, quarter, of acquired more and Singapore net asset asset continued of overall

trading of terms local XX%, Singapore a brokers retention equity shares The at XX%, and of our in the our cash saw among trading volumes quarter-over-quarter we assets volume. rate remain ranked in online at #X increase and users about with Singapore

are comfortable are in inflows So where of looking whether assets, we we retention position, we stand with strategic net profitability, at rates, client or Singapore. our

Our to success on is user quality closely to our tied and our focus locally ROI. commitment balancing

So strategy Thank we attracting users. will profitability this continue ensuring looking ahead, while high-quality you.

Language] [Foreign

It's [ view, natural a is technology business broker And add crypto Web important also So dealer a very is in our asset background Tiger's ] as a becoming extension a and integrated new class. knowhow. asset class. to X of the fintech with

for we licenses across applying So are multiple regions.

example, in PSA U.S., for applying Hong in for we each already In MSP we applying For state. are back licensing our following SFC's Kong, are license. VATP the consultation application In submitted we June. Singapore,

you. approval will trading next investors. and Thank So by hopefully, year, offer to an get we crypto

No questions.

the Now for management please. I hand would back like closing to remarks, call to

management call like call. joining on I everyone do the here closing thank at participation team today. our Tiger. to your I'm the this for to would behalf We of call appreciate now

have for you much very please Investor to reach call, your time. concludes team. out any thank Relations and questions, If the our you further This

Thank you.

call for and today. conference Ladies concludes gentlemen, that the

lines. now your may You disconnect

this transcript are spoken an [Portions live call.] interpreter on present [Interpreted] that of marked by the were