UP Fintech Holding Limited (TIGR) 20 Mar 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] I must advise you that this conference is being recorded today, March 20, 2024.

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

earlier Hello, NEWSWIRE call thank Limited today. Year as was and operator. our available us at website Fourth for on Full ir.itigerup.com distributed release earnings the UP as XXXX and everyone, you, is you on GLOBE and well joining Quarter today Services. Thank Fintech Holding

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

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

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

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

Today Quarter you NASDAQ. the the Thank marks on Conference everyone. and fifth Language]. [Interpreted] Call. [Foreign for Fourth joining Hello, Year of anniversary listing XXXX Language]. [Interpreted] Tiger's Earnings Full Brokers Tiger [Foreign

Southeast Asia, committed Hong the expanded X United the business Australia, past Singapore, States, years, we Kingdom. and have New that Kong to our global globally redefines mission investing Zealand, to the our and During technology United

improvement user including in and significant help market in profitability. That valuable know-how, turbulence, various sustainable has We've offering, industry This have product future. to uncertainties. growth and will aspects, experience regulatory made the us also navigated geopolitical through base

the the total assets oversea came majority XXXX, end of As of our market. users plant in of from

We are proud officially Benefiting revenue and and continue same XXXX, interest clients last dedication the X.X% innovation. [Foreign entered our Singapore we position quarter increase of we'll and continue Language]. [Interpreted] in Kong. total compared solidifying our million, reached USD In from to serve our advance international XX to reach to Hong year. higher strategy, and with environment, further leading the internationalization fourth rate of our period

to XXX full million, USD total Our year revenue XX% XXXX. representing from increase amounted a

primarily R&D in line resources efficiently. our and due strength which XXXX, we brand save Full bottom enabled saw in profit capabilities, net significant Additionally, USD improvement XX.X and deploy more reached year million. to us our to cost

million. [Foreign our other USD third a versus loss income non-GAAP exchange foreign X.X gain foreign quarter, against currencies, USD X quarter-over-quarter Language]. a in XXXX. we funding dollar of In drop quarter, reached USD to representing and X.Xx in the same of a XX.X high of XX.Xx Non-GAAP the and company depreciation net our since profit a U.S. period record million, X declined million resulted recorded noncash USD fourth due to million exchange the in net

China. our of annual funded an XX,XXX of quarter. increase guidance In previous from of fourth XXX,XXX accounts This markets majority exceeded year for we the of total number quarter, funding came [Interpreted] XXX,XXX the reached accounts, XX.X% the outside accounts. added from The funded our Mainland

leveraging initiatives our representing end the year. funded end quarter, XX.X% a in fourth of of exceeded XXXX In of the of number acquisition to last Singapore, total the customer below explore growth resulted to partners The by compared historical XXX. XXX,XXX, accounts while a with average at rise accounts strong USD to Southeast low quarterly in Asian the reducing presence funded a CC new which region, working of in are we

the We net assets, asset client saw asset of total X.X of quarter. remains billion USD strong. trend record inflow inflow terms In this

In addition jumped client to than XXXX. billion more mark-to-market the XX.X doubled quarter-over-quarter XX.X% to and X.X total year-over-year USD gain, at of USD billion assets end

our primarily client The increase to assets institutional in the meet development was clients. to due ongoing of needs product

in XX,XXX historic The are newly acquired Singapore see ] net newly the asset our quality average customers market. a inflows in the quarter, we further fourth the very to clients since in Singapore about quarter. high setting [ glad our improved into USD retail Additionally, acquired of of fourth was launch

net We Language]. [Interpreted] which combo platform that margin we our to believe fourth long-term user to options on feature, quarter, add introduced experience, to allows success. users key the [Foreign In enhance on continue a we based is our the new very options execute requirements. our product trades products multi-leg user-friendly strategy to

professional Fixed offering a management Additionally, experience. product, investors wealth the launched diversified Notes we Coupon more

In add asset broker-dealer important and new addition, business know-how. class globally, becoming it's to this extension as natural Tiger asset with crypto as of class is an background a Fintech

license upgrade. mainstream to for Bitcoin the In building services trading investors. in Hong to professional include This firm as X ETF brokerage started offer Kong, based to online Hong Hong us on Kong SFC license first our January, the In receive lifted frameworks. Type for Kong virtual of Type X XX local we regulatory positions X asset approval

[Foreign Language]

our Daotian J&T the of the as business, number banking business well. to total Kong XB Group fourth new total brings to in Our ESOP Hong for added XX to continues ESOP IPOs and clients a perform bringing the X, U.S. In of Hong the we investment and number XXXX. fourth including the underwritten Express, clients total quarter, of end IPOs XX. In underwrote in Kong of the service, served we of the [Interpreted] quarter, year Shiyue and U.S. XXX

go over financials. our John, [Foreign CFO, to Language] [Interpreted] I like would our to Now invite

Thanks, Tianhua and Aron.

increased U.S. were rate $XX through revenue the performance go $XXX.X me year. million was All are for in remained quarter last Total X.X% increased year-over-year. XX.X% this XX% rest and increased total X.X revenue numbers quarter-over-quarter quarter about and to million raising products. our futures Let financial flat dollar. year were and take quarter. Full last commission Cash this quarter, comes from revenue, equities, from cash from options other the compared from slightly the XX% come bps equity fourth

primarily lending to from Now last the [indiscernible] and for increased quarter was and XXX% recurring on self-clearing costs. rate both same interest expense in the decreased $X.X year, same to hike. more efficiency of quarter expense expense expense U.S. securities. Execution year by XX% Interest million, from to Kong $XX of securities million, increased and as due Hong were last

headcounts. $XX.X IT-related Occupancy, $X.X compensation an increased X% Employee and and increase to of an expense year-over-year due $X.X base of and increase benefits fees. of million, in to expense data to X.X% million increase expense Communication to were amortization XX% the an depreciation increase year-over-year increase million, due revenue. were due and in global user

professional net was X.X% $X.X quarter, GAAP costs the with in campaigns. from we to increase Total year-over-year fourth were were remain Non-GAAP due General an XX% as this last expenses income and XX% marketing prudent million. operating net were $X.X $X.X recorded decreased year. million. same of year-over-year the fees slightly Marketing of increased million million, $XX.X was expenses service $X.X administrative quarter loss million, quarter.

the of due noncash U.S. this during drop to The exchange depreciation foreign resulted was bottleneck losses primarily the in dollar sequential from quarter.

of year and net $XX.X was GAAP a in profit XXXX, our non-GAAP was history. the historical million, Total For income $XX.X high million, company's

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

the from comes question first Wang China line Our Instructions] from Renaissance. [Operator of Cindy

[Foreign Language]

giving Thanks [Interpreted] this for chance ask to questions.

X have I questions. So

has net the loss. but mainly in the is First QX was increased XXXX, dropped FX profitability in X profit because significantly sequentially of

quarter based the rate? So run have current you this seen in any improvement on year first

Any second enter give in us year? new of and well funded new business could region as is, development the the you markets And will you on each guidance this as breakdown XXXX accounts strategy.

So the Language]. [Interpreted] the non-GAAP line quarter versus decreased [Foreign third are factors. in the there fourth several quarter, bottom

-- due we during interest So hike is But incur quarter-over-quarter. the fourth rate cycle. revenue our flat is for first to quarter more total expense the X

million decreased quarter-over-quarter. net revenue total the So $X

is a in the The million second hit more that such will service as the professional are fourth there $X the book, cost. fees, jump resulting which in factor quarter, costs so

foreign The exchange losses. for the third is reason

first dollar So [indiscernible] RMB dollar. against the the and depreciated in quarter, U.S.

$X in the in gain we $X foreign a third losses million exchange noncash So in versus quarter. million a incurred the quarter fourth

in So we also a very inflow. on trading combining first to X increase factors, those during sequential activities basis. a strong year. of of saw run liability led client terms this it of net asset the so months have And X noncash an seen our in rate, we And decrease

the profitability quarter fourth exchange foreign quarter, in So first will much first better Thanks. be in relatively the the rate given we stable was in the quarter. the expect

XXX,XXX Language]. [Interpreted] for breakdown is new Asia. In XX% I'll and States Zealand XXXX, the XX% market accounts XXXX region. translate ROI results and Australia, the will after Southeast market and adjust our add accounts on to and for quite fleet About question. market XX%. Hong input regional of each, accounts. the come United in is will This opportunity target Kong and [Foreign our actual New second similar each based from Singapore to

example, have with from market course, already We Tiger Broker where the in that Taking high expect XXX,XXX the already target each relatively [ few increase Singapore, to accordingly. the we in potential. number market tremendous XXXX have of market for XXXX, from to And increase would entered ] incremental has believe XXX,XXX share. we

quarter. significant seen However, the in the fourth newly quality from acquired number Singapore can there's and be for This clients still our room growth. in of

to markets even In Hong have we more improve New room and like Australia, and Zealand Kong, expand.

enhance on efficiency more R&D our XXXX, our virtual to focus optimizing in So trading resources, by already asset the including ARPU markets features the product and our introducing entered will they've of profitability. remain

Thank Additionally, opportunities on to new based conditions. market markets we you. enter look will also

on Thank next Operator, to let's you. move the question.

Citi. of Our from next from the line Judy Zhang comes question

[Foreign Language]. I have X questions.

question commission and behind? customer AUM the but has underlying in turnover. the The reason what's turnover that much. regarding quarter, the improve significantly increased fourth commission the didn't first saw We the is the

funded regarding And customer. second question the is new

increased lot low level. the CAC new the us Can the paying company's with what's acquisition the strategy? management has new So to color customer give but on the a us -- Q-on-Q, record share some reached customer

end [Foreign billion. client of Language]. [Interpreted] increased compared this the to by assets the total few At growth. the factors doubled fourth the than a the Okay, more to compared XX% of previous There and to last quarter quarter, contributing $XX.X question. are year for end to first

in to high client a USD mark-to-market of the led in Firstly, fourth NIMs asset total our gain X.X billion, the quarter and rise index asset.

This assets have even considering seen around compared total would an asset that quarter. to the inflow, without increase XX% that previous of client our means

more quarter. gained market, as investors from inflow through In position the investment this this $X.X billion institutional of large retail trust to fourth total in to the transferred apart investors, have recognition quarter, such focusing Additionally, and banking. from who our contributed asset efforts their serving net and number efforts the we a on fourth been ESOP the of platform, significantly global

However, hedge fund. on honest, of be lower of institutional to primary investors velocity capital retail compared of some equity and to have market, which private this venture investors

of As a fourth this our quarter result, commission investors was the in the institutional of kind client limited and to contribution assets the increased fairly from revenue forth. so

second increase referrals of in For seen and banking we in They fourth enhanced the out high fourth a mark-to-market an more market by Asia question, accounts [Foreign new Southeast presence in our quarter. led Singapore quarter, traffic online the number in the brand advertising. to rolling organic and and Language]. [Interpreted] have

vary users the seen may in However, from different quality. acquisition approaches we've

moving ensure forward, the you, effectiveness our on healthy model. dynamically execution their So customer Thank and based to Judy. profit ARPU will strategies we adjust

Operator, please question. the move next on to

from Our Pu the Han of comes next CICC. from question line

[Foreign Language].

Pu, Han questions. is have CICC. This X I quick

original on for the of could in accounts trading founded really more business? breakdown crypto share the please please Hong business you could the operation, secondly, you color QX? Kong the us And Firstly, give especially

the new New around XX% in for the each. quarter, and Singapore fourth Zealand nearly about United Among Okay. Australia accounted from contribution States, the from Asia, came Language]. [Interpreted] and [Foreign region and from funded Southeast the XX% came XX% Kong accounts Hong

Language]. [Foreign

We Kong year. have X Hong market for entered retail

our progress. with And we are so far, satisfied relatively

in So our to Kong, friendly X most Hong such competitive a pricing of the explain we to market offer users.

Tiger Kong platform. improvement Hong in year, X they product we features. offering and now, Until current been of past can we level are over quite with still are plant satisfied fees, securities have on and optimizing enjoy our the trading our users the commission Also, X when [indiscernible] product

users Tiger features license spark In In the bonds U.S. allowing launched this in we trading quarter, we to fourth fee the the professional the the year, PI Hang quarter of on crypto Kong. with the to asset allowing Hong trade and platform. investors Type updated -- first X

We X expect or in this feature to the next go X live months.

user time. users implemented time took Our in already improved also the we the from gradually the market Kong, -- Hong stages fourth and In to time. local will is customer which quarter, of localized the In we understanding early may local business a acquisition more and quality our expanding, strategy. some

inflow for total the the in Hong Kong year. this quarters first of the exceeding As X a net asset result, the market

fourth in a user Additionally, the market the average future. from indicating the good inflow newly explore quarter Kong us debt the X,XXX, USD quality opportunity for growth to acquired big asset Hong a and clients exceeded in in

Thanks.

Let's move on.

at time. this There are no further questions

hand Aron for closing to I'll the call So back remarks.

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

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

conference call. for participating. Thank today's concludes you This

disconnect. may by. now stand You please Speakers,