UP Fintech (TIGR) Q3 2024 earnings summary

Executive summary

• Achieved record total revenue of $101.1 million in Q3 2024, up 44.1% year-over-year and 15.6% quarter-over-quarter, driven by expanded client base and active U.S. market conditions.

• Net income attributable to shareholders reached $17.8 million (GAAP), up 34% year-over-year and 584.6% quarter-over-quarter; non-GAAP net income was $20.1 million, up 25.6% year-over-year and 286.5% quarter-over-quarter.

• Operating profit margin improved to 26%, reflecting enhanced operating leverage.

• Customer growth accelerated with 50,500 new deposit customers added in Q3, more than double last year.

• Total client assets reached $40.8 billion, up 115.9% year-over-year and 7% quarter-over-quarter, setting a new high.

Financial highlights

• Commission income was $41.2 million, up 21% quarter-over-quarter and 77.7% year-over-year, the highest in three years.

• Interest income rose to $48 million, up 9% quarter-over-quarter and 25.2% year-over-year.

• Margin financing and securities lending business reached $4.5 billion, up 29% quarter-over-quarter and 101.8% year-over-year.

• Total operating costs were $59.3 million, up 21.7% year-over-year.

• Net income per ADS-diluted was $0.110 (GAAP) and $0.124 (non-GAAP), both up year-over-year.

Outlook and guidance

• Annual guidance for 150,000 newly funded accounts already achieved by early November.

• October saw record trading volume and commission performance, both more than doubling the average monthly performance of the first half of the year.

• Q4 is off to a strong start, with solid trading volume and continued net asset inflows, though some uncertainty remains due to post-election and Fed rate decisions.

• Management highlights continued product innovation and market expansion as key growth drivers.