Nasdaq-listed UP Fintech, known as Tiger Brokers in Asia, reported a GAAP (or generally accepted accounting principles) net income of US$3.3 million ($4.6 million) for the 3QFY2022 ended Sept 30.
The net income attributable to UP Fintech was 83.9% lower than the GAAP income attributable to the company of US$20.5 million in the corresponding period the year before. It was, however, a reversal into the black from the previous quarter’s loss of US$0.9 million.
UP Fintech’s non-GAAP income stood at US$6.6 million, which was up by 26.2% y-o-y and 91.3% q-o-q. The company’s non-GAAP income excludes hare-based compensation and fair value change from convertible bonds.
Net income per American depositary share (ADS) was 2.1 US cents on a diluted basis, down from last year’s 12.7 US cents.
Non-GAAP net income per ADS was 4.1 US cents on a diluted basis, up from the 3.3 US cents in the year before.
For the 3QFY2022, UP Fintech’s weighted average number of ADSs used in calculating non-GAAP net income per ADS stood at 161.7 million.
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As at Sept 30, UP Fintech had a total of 153.97 million ADSs.
During the 3QFY2022, the company’s total revenues stood at US$55.4 million, which was 8.8% lower y-o-y but 3.6% higher on a q-o-q basis.
Total net revenues for the 3QFY2022 fell by 9.7% y-o-y but increased by 2.3% q-o-q to US$51.1 million.
In the period, commissions fell by 26.9% y-o-y to US$24.5 million due to lower trading volume and market activities.
Financing service fees fell by 14.6% y-o-y to US$2.1 million primarily due to lower margin financing and securities lending activities.
On the back of the increased interest rates, interest rate income rose by 41.0% y-o-y to US$24.8 million.
Other revenues fell by 44.8% y-o-y to US$4.0 million mainly due to the slowdown in underwriting-related business and currency exchange service.
Interest expense was US$4.3 million, up by 2.9% y-o-y.
During the 3QFY2022, UP Fintech saw a total trading volume of US$78.2 billion from its customers on the company’s platform. Of the amount, US$23.5 billion was on share trading and 7.7 million options and futures contracts were made.
Net asset inflow from the company’s customers exceeded US$700 million during the third quarter, and the company retained 98% of its customers with assets during the period.
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In Singapore, the average net deposit of newly-acquired clients grew for the second consecutive quarter, passing the US$11,000 threshold in the 3QFY2022.
The company’s brand-new Tiger Vault saw its assets under management (AUM) grew by 120.1% q-o-q; its number of users increased by 61.3% q-o-q.
“In the third quarter, the company witnessed steady sequential growth in key indicators. Our interest-related income was up by almost 70% q-o-q amid the Federal Reserve's interest rates hikes,” says CEO and founder of UP Fintech, Wu Tianhua.
“While thanks to further improved operational efficiency, our non-GAAP net income nearly doubled, all the more showing our resilience to global macroeconomic uncertainties. Among our global markets, in Australia and New Zealand, the public recognition of our services rose significantly, with the number of new funded clients accounting for 19% of the total worldwide,” Wu adds.
In the upcoming fourth quarter, Wu revealed that the company will “land [its] services” in Hong Kong, where it is “committed to providing investors in this global financial centre with the best possible products and services.”
