UP Fintech Holding Limited Reports Unaudited Second Quarter 2022 Financial Results
“Macro environment remained challenging in the second quarter. Weak market performance, particularly in the
We added 27,900 funded accounts in the second quarter, with over 70% coming from outside of
We continued to invest in research and development to improve operational efficiency and to enhance user experience. In the second quarter, execution and clearing cost as a percentage of trading commission further deceased to under 15%. To better help our users navigate the market turmoil, we have launched the 8.0 version of our app with both lite and pro models, which provides a more simplified interface and diversified products offering. We keep upgrading our
Our corporate business continued to grow despite market volatility. In the second quarter, we underwrote 7 U.S. IPOs and 4 Hong Kong IPOs, making us one of the most active underwriters globally, especially for
Financial Highlights for Second Quarter 2022
- Total revenues were
US$53.5 million , a decrease of 11.2% year-over-year and an increase of 1.6% quarter-over-quarter. - Total net revenues were
US$49.9 million , a decrease of 9.8% year-over-year and an increase of 2.0% quarter-over-quarter. - Net loss attributable to
UP Fintech wasUS$0.9 million compared to a net loss ofUS$21.5 million in the same quarter of last year. - Non-GAAP net income attributable to
UP Fintech wasUS$3.5 million , compared to a non-GAAP net loss ofUS$4.4 million in the same quarter of last year. A reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics is set forth below.
Operating Highlights for Second Quarter 2022
- Total account balance decreased 37.9% year-over-year to
US$14.9 billion . - Total margin financing and securities lending balance decreased 53.5% year-over-year to
US$1.6 billion . - Total number of customers with deposit increased 38.2% year-over-year to 731,400.
Selected Operating Data for Second Quarter 2022
As of and for the three months ended | ||||||||||||
2021 | 2022 | 2022 | ||||||||||
In 000's | ||||||||||||
Number of customer accounts | 1,649.0 | 1,896.2 | 1,935.0 | |||||||||
Number of customers with deposits | 529.1 | 703.5 | 731.4 | |||||||||
Number of options and futures contracts traded | 7,809.6 | 8,420.4 | 8,039.1 | |||||||||
In USD millions | ||||||||||||
Trading volume | 102,006.0 | 91,016.9 | 85,475.8 | |||||||||
Trading volume of stocks1 | 40,458.2 | 34,700.8 | 30,737.7 | |||||||||
Total account balance | 23,932.7 | 15,210.3 | 14,860.2 |
1 Refer to the disclosure under the heading “Changes of Operating Data Disclosure” below for a description of changes to how trading volume is presented compared to prior quarters.
Second Quarter 2022 Financial Results
REVENUES
Total revenues were
Commissions were
Financing service fees were
Interest income was
Other revenues were
Interest expense was
OPERATING COSTS AND EXPENSES
Total operating costs and expenses were
Execution and clearing expenses were
Employee compensation and benefits expenses were
Occupancy, depreciation and amortization expenses were
Communication and market data expenses were
Marketing and branding expenses were
General and administrative expenses were
NET LOSS/INCOME ATTRIBUTABLE TO UP FINTECH HOLDING LIMITED
Net loss attributable to
Non-GAAP net income attributable to
For the second quarter of 2022, the Company’s weighted average number of ADSs used in calculating non-GAAP net income per ADS – diluted was 154,509,515. As of
CERTAIN OTHER FINANCIAL ITEMS
As of
As of
Changes of Operating Data Disclosure:
For the purpose of providing more relevant information to facilitate investors’ understanding of our business, the Company had determined to provide the number of contracts traded of options and futures on a quarterly basis starting from the first quarter ended
As of and for the three months ended | ||||||||||||
2021 | 2022 | 2022 | ||||||||||
In USD millions | ||||||||||||
Historic presentation: trading volume | 102,006.0 | 91,016.9 | 85,475.8 | |||||||||
New presentation: trading volume of stocks | 40,458.2 | 34,700.8 | 30,737.7 |
We have adopted this change because our management has determined that the number of options and futures contracts traded is a more relevant metric for understanding and managing our business than the trading volume of options and futures presented on an aggregate basis with trading volume of stocks. In future disclosures of our earnings, we expect to report trading volume of stocks and the number of options and futures contracts traded in lieu of aggregate trading volume. This change did not affect previously disclosed operating data other than as described above.
Updates to Management
Effective
Conference Call Information:
UP Fintech’s management will hold an earnings conference call at
All participants wishing to attend the call must preregister online before they may receive the dial-in numbers. Preregistration may require a few minutes to complete.
Preregistration Information:
Please note that all participants will need to pre-register for the conference call, using the link:
https://register.vevent.com/register/BI4db5286a22c849018b3385c43c1c95bf
It will automatically lead to the registration page of "
Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information.
Additionally, a live and archived webcast of the conference call will be available at https://ir.itiger.com.
Use of Non-GAAP Financial Measures
In evaluating our business, we consider and use non-GAAP net loss or income attributable to
We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Non-GAAP net loss or income attributable to
These non-GAAP financial measures are not defined under
These non-GAAP financial measures should not be considered in isolation or construed as alternatives to total operating expenses, net loss or income attributable to
About
UP Fintech Holding Limited is a leading online brokerage firm focusing on global investors. The Company’s proprietary mobile and online trading platform enables investors to trade in equities and other financial instruments on multiple exchanges around the world. The Company offers innovative products and services as well as a superior user experience to customers through its “mobile first” strategy, which enables it to better serve and retain current customers as well as attract new ones. The Company offers customers comprehensive brokerage and value-added services, including trade order placement and execution, margin financing, IPO subscription, ESOP management, investor education, community discussion and customer support. The Company’s proprietary infrastructure and advanced technology are able to support trades across multiple currencies, multiple markets, multiple products, multiple execution venues and multiple clearinghouses.
For more information on the Company, please visit: https://ir.itiger.com.
Safe Harbor Statement
This announcement contains forward−looking statements. These statements are made under the “safe harbor” provisions of the
For investor and media inquiries please contact:
Investor Relations Contact
Email: ir@itiger.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in
As of |
As of |
|||||
2021 | 2022 | |||||
US$ | US$ | |||||
Assets: | ||||||
Cash and cash equivalents | 269,057,708 | 327,780,671 | ||||
Cash-segregated for regulatory purpose | 1,431,827,247 | 1,572,585,330 | ||||
Term deposits | 3,044,461 | 3,019,122 | ||||
Receivables from customers (net of allowance of |
664,657,453 | 617,731,258 | ||||
Receivables from brokers, dealers, and clearing organizations: | ||||||
Related parties | 804,639,024 | — | ||||
Others | 75,143,153 | 905,015,705 | ||||
Financial instruments held, at fair value | 3,902,987 | 6,630,745 | ||||
Prepaid expenses and other current assets | 16,051,623 | 14,699,323 | ||||
Amounts due from related parties | 2,947,871 | 4,649,322 | ||||
Total current assets | 3,271,271,527 | 3,452,111,476 | ||||
Non-current assets: | ||||||
Right-of-use assets | 6,613,520 | 10,301,296 | ||||
Property, equipment and intangible assets, net | 14,031,652 | 14,523,722 | ||||
2,492,668 | 2,492,668 | |||||
Long-term investments | 9,777,844 | 8,687,574 | ||||
Other non-current assets | 4,973,085 | 5,362,044 | ||||
Deferred tax assets | 12,258,360 | 13,685,454 | ||||
Total non-current assets | 50,147,129 | 55,052,758 | ||||
Total assets | 3,321,418,656 | 3,507,164,234 | ||||
Current liabilities: | ||||||
Payables to customers | 2,509,492,814 | 2,599,637,295 | ||||
Payables to brokers, dealers and clearing organizations: | ||||||
Related parties | 170,338,199 | — | ||||
Others | 499,978 | 271,388,492 | ||||
Accrued expenses and other current liabilities | 33,746,177 | 29,379,085 | ||||
Deferred income-current | 1,213,647 | 1,173,406 | ||||
Lease liabilities-current | 2,610,041 | 2,209,927 | ||||
Amounts due to related parties | 2,039,287 | 1,275,384 | ||||
Total current liabilities | 2,719,940,143 | 2,905,063,589 | ||||
Convertible bonds | ||||||
Related parties | 25,330,766 | — | ||||
Others | 123,510,910 | 153,074,190 | ||||
Deferred income-non-current | 1,382,091 | 808,453 | ||||
Lease liabilities- non-current | 3,092,913 | 7,784,443 | ||||
Deferred tax liabilities | 1,535,965 | 1,472,541 | ||||
Total liabilities | 2,874,792,788 | 3,068,203,216 | ||||
Shareholders’ equity: | ||||||
Class A ordinary shares | 20,599 | 22,113 | ||||
Class B ordinary shares | 2,221 | 976 | ||||
Additional paid-in capital | 484,335,291 | 489,097,002 | ||||
Statutory reserve | 3,562,888 | 3,562,888 | ||||
Accumulated deficit | (45,788,131 | ) | (52,395,963 | ) | ||
Treasury Stock | (2,172,819 | ) | (2,172,819 | ) | ||
Accumulated other comprehensive income | 6,665,819 | 846,821 | ||||
Total shareholder's equity | 446,625,868 | 438,961,018 | ||||
Total liabilities and equity | 3,321,418,656 | 3,507,164,234 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(All amounts in
For the three months ended | For the six months ended | ||||||||||||||
2021 | 2022 | 2022 | 2021 | 2022 | |||||||||||
US$ | US$ | US$ | US$ | US$ | |||||||||||
Revenues(a): | |||||||||||||||
Commissions | 30,943,412 | 30,470,318 | 28,216,614 | 83,837,515 | 58,686,932 | ||||||||||
Interest related income | |||||||||||||||
Financing service fees | 2,234,256 | 1,566,458 | 1,508,697 | 4,474,126 | 3,075,155 | ||||||||||
Interest income | 16,846,112 | 15,456,486 | 14,452,868 | 32,478,025 | 29,909,354 | ||||||||||
Other revenues | 10,210,600 | 5,135,441 | 9,297,933 | 20,722,088 | 14,433,374 | ||||||||||
Total revenues | 60,234,380 | 52,628,703 | 53,476,112 | 141,511,754 | 106,104,815 | ||||||||||
Interest expense(a) | (4,836,621 | ) | (3,650,690 | ) | (3,529,347 | ) | (10,369,311 | ) | (7,180,037 | ) | |||||
Total Net Revenues | 55,397,759 | 48,978,013 | 49,946,765 | 131,142,443 | 98,924,778 | ||||||||||
Operating costs and expenses: | |||||||||||||||
Execution and clearing(a) | (6,552,785 | ) | (4,508,760 | ) | (3,856,210 | ) | (14,766,507 | ) | (8,364,970 | ) | |||||
Employee compensation and benefits | (20,569,963 | ) | (27,475,391 | ) | (25,635,651 | ) | (37,032,499 | ) | (53,111,042 | ) | |||||
Occupancy, depreciation and amortization | (1,463,185 | ) | (2,047,168 | ) | (2,468,543 | ) | (2,678,433 | ) | (4,515,711 | ) | |||||
Communication and market data(a) | (5,120,366 | ) | (6,369,107 | ) | (7,181,403 | ) | (9,074,327 | ) | (13,550,510 | ) | |||||
Marketing and branding | (23,709,115 | ) | (9,956,833 | ) | (8,366,559 | ) | (36,512,489 | ) | (18,323,392 | ) | |||||
General and administrative | (5,098,401 | ) | (4,547,384 | ) | (4,342,120 | ) | (9,149,835 | ) | (8,889,504 | ) | |||||
Total operating costs and expenses | (62,513,815 | ) | (54,904,643 | ) | (51,850,486 | ) | (109,214,090 | ) | (106,755,129 | ) | |||||
Other (expense) income: | |||||||||||||||
Fair Value Change from convertible bonds(a) | (13,733,130 | ) | — | — | (13,763,000 | ) | — | ||||||||
Others, net | (954,500 | ) | (425,643 | ) | 1,680,037 | (1,889,329 | ) | 1,254,394 | |||||||
(Loss) income before income tax | (21,803,686 | ) | (6,352,273 | ) | (223,684 | ) | 6,276,024 | (6,575,957 | ) | ||||||
Income tax benefits (expenses) | 296,772 | 473,690 | (663,366 | ) | (6,726,610 | ) | (189,676 | ) | |||||||
Net loss | (21,506,914 | ) | (5,878,583 | ) | (887,050 | ) | (450,586 | ) | (6,765,633 | ) | |||||
Net loss attributable to |
(21,506,914 | ) | (5,878,583 | ) | (887,050 | ) | (450,586 | ) | (6,765,633 | ) | |||||
Other comprehensive loss, net of tax: | |||||||||||||||
Unrealized loss on available-for-sale investments | — | (265,687 | ) | — | — | (265,687 | ) | ||||||||
Changes in cumulative foreign currency translation adjustment | 627,201 | 993,440 | (6,546,751 | ) | 391,351 | (5,553,311 | ) | ||||||||
Total Comprehensive income loss | (20,879,713 | ) | (5,150,830 | ) | (7,433,801 | ) | (59,235 | ) | (12,584,631 | ) | |||||
Net loss per ordinary share: | |||||||||||||||
Basic | (0.010 | ) | (0.003 | ) | (0.000 | ) | (0.000 | ) | (0.003 | ) | |||||
Diluted | (0.010 | ) | (0.003 | ) | (0.000 | ) | (0.000 | ) | (0.003 | ) | |||||
Net loss per ADS (1 ADS represents 15 Class A ordinary shares): | |||||||||||||||
Basic | (0.149 | ) | (0.039 | ) | (0.006 | ) | (0.003 | ) | (0.044 | ) | |||||
Diluted | (0.149 | ) | (0.039 | ) | (0.006 | ) | (0.003 | ) | (0.044 | ) | |||||
Weighted average number of ordinary shares used in calculating net loss per ordinary share: |
|||||||||||||||
Basic | 2,165,360,496 | 2,279,261,602 | 2,293,793,839 | 2,146,848,196 | 2,286,567,867 | ||||||||||
Diluted | 2,165,360,496 | 2,279,261,602 | 2,293,793,839 | 2,146,848,196 | 2,286,567,867 |
(a) Includes the following revenues, costs and expenses resulting from transactions with related parties as follow:
For the three months ended | For the six months ended | ||||||||||||||
2021 | 2022 | 2022 | 2021 | 2022 | |||||||||||
US$ | US$ | US$ | US$ | US$ | |||||||||||
Revenues: | |||||||||||||||
Commissions | 5,923,448 | 3,986,037 | 5,221 | 19,257,976 | 3,991,258 | ||||||||||
Interest related income | |||||||||||||||
Financing service fees | 2,234,256 | 1,329,490 | — | 4,474,126 | 1,329,490 | ||||||||||
Interest income | 8,528,598 | 4,692,011 | 33,864 | 17,810,278 | 4,725,875 | ||||||||||
Other revenues | 3,767,259 | 1,805,126 | — | 9,724,269 | 1,805,126 | ||||||||||
Interest expense | (3,570,503 | ) | (2,056,556 | ) | — | (7,830,268 | ) | (2,056,556 | ) | ||||||
Execution and clearing | (4,099,296 | ) | (1,751,505 | ) | — | (10,007,409 | ) | (1,751,505 | ) | ||||||
Communication and market data | (44,333 | ) | (25,000 | ) | (29,267 | ) | (44,333 | ) | (54,267 | ) | |||||
Fair Value Change from convertible bonds | (9,363,498 | ) | — | — | (9,383,864 | ) | — | ||||||||
Reconciliations of Unaudited Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures
(All amounts in
For the three months ended 2021 |
For the three months ended 2022 |
For the three months ended 2022 |
|||||||||||||||
non-GAAP | non-GAAP | non-GAAP | |||||||||||||||
GAAP | Adjustment | non-GAAP | GAAP | Adjustment | non-GAAP | GAAP | Adjustment | non-GAAP | |||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||
3,420,845 | (1) | 3,459,283 | (1) | 4,355,016 | (1) | ||||||||||||
— | (2) | 472,605 | (2) | — | (2) | ||||||||||||
13,733,130 | (3) | — | (3) | — | (3) | ||||||||||||
Net (loss) income attributable to Limited |
(21,506,914 | ) | 17,153,975 | (4,352,939 | ) | (5,878,583 | ) | 3,931,888 | (1,946,695 | ) | (887,050 | ) | 4,355,016 | 3,467,966 | |||
Net (loss) income per ADS - diluted | (0.149 | ) | (0.030 | ) | (0.039 | ) | (0.013 | ) | (0.006 | ) | 0.022 | ||||||
Weighted average number of ADSs used in calculating diluted net (loss) income per ADS | 144,357,366 | 144,357,366 | 151,950,773 | 151,950,773 | 152,919,589 | 154,509,515 |
(1) Share-based compensation.
(2) Impairment loss from long-term investments
(3) Fair value change from convertible bonds
UP Fintech Holding Limited