UP Fintech Holding Limited (NASDAQ:TIGR), which operates the online brokerage brand Tiger Brokers, has announced its financial results for the third quarter ended September 30, 2024, showing both record quarterly Revenues and Profits for the company.
Net Revenue came in at $85.4 million in Q3-2024, up 16% over Q2’s previous record of $73.9 million, while Net Profit totaled $33.9 million, well above Tiger Brokers’ previous best quarterly profit of $11.6 million in Q3-2023.
Operating Highlights for Third Quarter 2024
- Total account balance increased 115.9% year-over-year to US$40.8 billion.
- Total margin financing and securities lending balance increased 101.8% year-over-year to US$4.5 billion.
- Total number of customers with deposit increased 19.3% year-over-year to 1,032,800.
Tiger Brokers saw monthly average trading volumes of $54 billion in Q3-2024, another record for the company, up from $35 billion in Q2.
On the expense side of the business, total operating costs and expenses were US$59.3 million, an increase of 21.7% from US$48.8 million in the same quarter of last year. Execution and clearing expenses were US$3.5 million, an increase of 48.3% from US$2.4 million in the same quarter of last year due to an increase in our trading volume. Employee compensation and benefits expenses were US$28.8 million, an increase of 10.8% from US$26.0 million in the same quarter of last year, primarily due to an increase of global headcount to support our global expansion.
Occupancy, depreciation and amortization expenses were US$2.2 million, a slight decrease of 3.2% from US$2.2 million in the same quarter of last year. Communication and market data expenses were US$9.7 million, an increase of 28.4% from US$7.6 million in the same quarter of last year due to increased IT-related fees. Marketing and branding expenses were US$8.2 million, an increase of 59.2% from US$5.2 million in the same quarter of last year, primarily due to higher marketing spending this quarter. General and administrative expenses were US$6.9 million, an increase of 27.3% from US$5.4 million in the same quarter of last year due to the increase in professional service expense and general expenses resulting from business expansion and changes.
Wu Tianhua, Chairman and CEO of UP Fintech stated:
“Both of our financial and operating performance have achieved significant growth in the third quarter. Total revenue reached US$101.1 million, a historical high and representing a sequential increase of 15.6% and a year-over-year growth of 44.1%. Bottom line also largely increased in GAAP and non-GAAP basis. Net income attributable to ordinary shareholders of UP Fintech reached US$17.8 million, representing a quarter-over-quarter growth of 584.6% and a year-over-year growth of 34.0%. Non-GAAP net income attributable to ordinary shareholders of UP Fintech amounted to US$20.1 million, a quarter-over-quarter increase of 286.5% and a year-over-year increase of 25.6%.
“In the third quarter, we added 50,500 customers with deposits, more than doubled from a year ago and the total number of customers with deposits at the end of the third quarter reached approximately 1,032,800. We took advantage of the active market condition in October and by now we have already achieved our annual guidance of acquiring 150,000 newly customers with deposits. Driven by strong net asset inflow from retail clients and mark to market gains, total account balance further increased 6.7% quarter-over-quarter and 115.9% year-over-year to US$40.8 billion, setting another historic high.
“We continued to add new products on our platform to enhance user experience, which we believe is key to our long-term success. In the third quarter, we officially launched Hong Kong stock option trading and short selling. In early November, we have upgraded the Hong Kong stock option feature by offering weekly option in addition to monthly option. Additionally, in September, we introduced the Tiger Boss debit card, along with the T+0 automatic subscription and redemption feature for our wealth management product, Tiger Vault. This integration allows users to manage their investment portfolios more conveniently, seamlessly bridging daily spending, wealth management, and stock investments.
“Our corporate businesses continued to perform well in the third quarter of 2024. During this period, we underwrote a total of 13 U.S. and Hong Kong IPOs, including “NIP Group” and “Voicecomm Technology” and we served as the exclusive lead bank for the U.S. IPOs of “NIP Group” and “XCHG Limited”. In our ESOP business, we added 18 new clients in the third quarter, bringing the total number of ESOP clients served to 597 as of September 30, 2024.”
