PriyaPatelTLDR:
UP Fintech Holding Limited (NASDAQ:TIGR) reported fourth-quarter FY23 results which led to a decline in their stock. Despite total revenues increasing by 9.6% year-over-year, total net revenues decreased by 4.7%. The company saw a decrease in commissions due to decreased trading volume, an increase in financing service fees due to higher interest rates, and a rise in interest income on margin financing and securities lending activities. Non-GAAP net income per ADS missed the consensus. The company introduced a new Combo Option Strategy feature and received approval to offer Virtual Asset dealing services to Professional Investors in Hong Kong. As a result, TIGR shares are down by 10.1% at $4.02.
Full Article:
UP Fintech Holding Limited (NASDAQ:TIGR) shares are trading lower after the company reported fourth-quarter FY23 results. Total revenues increased 9.6% year-over-year to $70.0 million, while total net revenues decreased 4.7% to $54.0 million. The decline in total net revenues was attributed to a decrease in commissions to $22.0 million, down 11.9% year-over-year, due to decreased trading volume. Financing service fees saw an increase to $3.2 million, up 18.4% year-over-year, primarily due to increased interest rates. Interest income also increased to $40.0 million, up 31.3% year-over-year, on higher margin financing and securities lending activities.
In the fourth quarter, UP Fintech added 39,034 new funded accounts, an increase of 42.8% year-over-year, surpassing the yearly guidance of 100,000. The total account balance rose 118.5% year-over-year to $30.6 billion, with the total number of customers with deposits increasing by 15.8% year-over-year to 904,600. The total margin financing and securities lending balance also increased by 17.9% year-over-year to $2.4 billion.
Despite these positive growth numbers, non-GAAP net income per ADS was $0.007, missing the consensus of $0.07. As of December 31, 2023, cash and cash equivalents and term deposits were $327.7 million. Wu Tianhua, Chairman and CEO, mentioned the introduction of the Combo Option Strategy feature and the approval to offer Virtual Asset dealing services to Professional Investors in Hong Kong.
However, the company’s stock price is down by 10.1% at $4.02 as a result of the earnings miss and the market’s reaction to the financial results. This decline reflects investor sentiment towards the company’s performance and future outlook.
