“The macro environment was more difficult in the first quarter versus a year ago, as investors were wary of geopolitical conflicts, high inflation in the
We added 30,150 funded accounts this quarter, bringing total number of funded accounts to 703,500, an increase of 87.1% from the same quarter last year. Total client assets decreased year over year due to mark-to-market loss, but we saw strong net asset inflow of
We continued to invest in research and development to improve operational efficiency and to enhance user experience. In the first quarter, we started to self-clear
Our corporate businesses continue to perform despite the weak market backdrop. We underwrote 7 U.S. IPOs in the first quarter, making us one of the most active underwriters for
Financial Highlights for First Quarter 2022
- Total revenues decreased 35.2% year-over-year to
US$52.6 million . - Total net revenues decreased 35.3% year-over-year to
US$49.0 million . - Net loss attributable to
UP Fintech wasUS$5.9 million compared to a net income ofUS$21.1 million in the same quarter of last year. - Non-GAAP net loss attributable to
UP Fintech wasUS$1.9 million , compared to a non-GAAP net income ofUS$23.5 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 First Quarter 2022
- Total account balance decreased 29.0% year-over-year to
US$15.2 billion . - Total margin financing and securities lending balance decreased 27.8% year-over-year to
US$1.7 billion . - Total number of customers with deposit increased 87.1% year-over-year to 703,500.
Selected Operating Data for First Quarter 2022
As of and for the three months ended | ||||||||||||
2021 | 2021 | 2022 | ||||||||||
In 000's | ||||||||||||
Number of customer accounts | 1,400.2 | 1,845.9 | 1,896.2 | |||||||||
Number of customers with deposit | 376.0 | 673.4 | 703.5 | |||||||||
Number of options and futures contracts traded | 11,115.3 | 8,200.3 | 8,420.4 | |||||||||
In USD millions | ||||||||||||
Trading volume | 123,831.5 | 85,896.3 | 91,016.9 | |||||||||
Trading volume of stocks1 | 60,919.2 | 33,302.9 | 34,700.8 | |||||||||
Total account balance | 21,414.6 | 17,082.5 | 15,210.3 |
_____________________________________________________________________________________________________________________________________________
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.
First 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 loss attributable to
For the first quarter of 2022, the Company’s weighted average number of ADSs used in calculating non-GAAP net loss per ADS – diluted was 151,950,773. 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 has determined to provide the number of contracts traded of options and futures on a quarterly basis starting from this quarter. Historically, the Company has disclosed total trading volume of stocks, options and futures (notional volume) on an aggregate basis. Beginning this quarter, the Company will be disclosing the trading volume of stocks on a stand-alone basis, and will disclose the number of contracts traded of options and futures. As a result of this change, our trading volume as reported for prior quarters will be retrospectively recast to represent trading volume of stocks on a stand-alone basis in addition to trading volume on an aggregate basis. The effect of this recast is illustrated in the table below:
As of and for the three months ended | ||||||||||||
2021 | 2021 | 2022 | ||||||||||
In USD millions | ||||||||||||
Historic presentation: trading volume | 123,831.5 | 85,896.3 | 91,016.9 | |||||||||
New presentation: trading volume of stocks | 60,919.2 | 33,302.9 | 34,700.8 |
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.
Director Resignation:
Mr.
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:
Participants may register for the conference call by navigating to:
http://apac.directeventreg.com/registration/event/2768763
Once preregistration has been complete, participants will receive dial-in numbers, direct event passcode, and registrant id. The conference ID: is 2768763
To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly.
A telephone replay of the call will be available after the conclusion of the conference call through
International: +61 2 90034211
Passcode: 2768763
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 | 349,805,441 | ||||||
Cash-segregated for regulatory purpose | 1,431,827,247 | 1,772,966,318 | ||||||
Term deposits | 3,044,461 | 3,054,318 | ||||||
Receivables from customers (net of allowance of | 664,657,453 | 613,202,051 | ||||||
Receivables from brokers, dealers, and clearing organizations: | ||||||||
Related parties | 804,639,024 | — | ||||||
Others | 75,143,153 | 825,960,699 | ||||||
Financial instruments held, at fair value | 3,902,987 | 5,626,713 | ||||||
Prepaid expenses and other current assets | 16,051,623 | 15,508,929 | ||||||
Amounts due from related parties | 2,947,871 | 5,141,174 | ||||||
Total current assets | 3,271,271,527 | 3,591,265,643 | ||||||
Non-current assets: | ||||||||
Right-of-use assets | 6,613,520 | 5,537,458 | ||||||
Property, equipment and intangible assets, net | 14,031,652 | 13,940,530 | ||||||
2,492,668 | 2,492,668 | |||||||
Long-term investments | 9,777,844 | 8,839,312 | ||||||
Other non-current assets | 4,973,085 | 4,001,683 | ||||||
Deferred tax assets | 12,258,360 | 14,050,854 | ||||||
Total non-current assets | 50,147,129 | 48,862,505 | ||||||
Total assets | 3,321,418,656 | 3,640,128,148 | ||||||
Current liabilities: | ||||||||
Payables to customers | 2,509,492,814 | 2,823,156,568 | ||||||
Payables to brokers, dealers and clearing organizations: | ||||||||
Related parties | 170,338,199 | — | ||||||
Others | 499,978 | 175,904,744 | ||||||
Accrued expenses and other current liabilities | 33,746,177 | 36,650,505 | ||||||
Deferred income-current | 1,213,647 | 1,191,515 | ||||||
Lease liabilities-current | 2,610,041 | 1,628,525 | ||||||
Amounts due to related parties | 2,039,287 | 1,662,927 | ||||||
Total current liabilities | 2,719,940,143 | 3,040,194,784 | ||||||
Convertible bonds | ||||||||
Related parties | 25,330,766 | — | ||||||
Others | 123,510,910 | 152,454,838 | ||||||
Deferred income-non-current | 1,382,091 | 1,088,225 | ||||||
Lease liabilities- non-current | 3,092,913 | 2,923,316 | ||||||
Deferred tax liabilities | 1,535,965 | 1,474,786 | ||||||
Total liabilities | 2,874,792,788 | 3,198,135,949 | ||||||
Shareholders’ equity: | ||||||||
Class A ordinary shares | 20,599 | 21,948 | ||||||
Class B ordinary shares | 2,221 | 976 | ||||||
Additional paid-in capital | 484,335,291 | 484,694,547 | ||||||
Statutory reserve | 3,562,888 | 3,562,888 | ||||||
Accumulated deficit | (45,788,131 | ) | (51,508,913 | ) | ||||
(2,172,819 | ) | (2,172,819 | ) | |||||
Accumulated other comprehensive income | 6,665,819 | 7,393,572 | ||||||
Total shareholders’ equity | 446,625,868 | 441,992,199 | ||||||
Total liabilities and shareholders’ equity | 3,321,418,656 | 3,640,128,148 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
(All amounts in |
For the three months ended | ||||||||||||
2021 | 2021 | 2022 | ||||||||||
US$ | US$ | US$ | ||||||||||
Revenues(a): | ||||||||||||
Commissions | 52,894,103 | 29,859,784 | 30,470,318 | |||||||||
Interest related income | ||||||||||||
Financing service fees | 2,239,870 | 2,281,978 | 1,566,458 | |||||||||
Interest income | 15,631,913 | 20,267,624 | 15,456,486 | |||||||||
Other revenues | 10,511,488 | 9,785,272 | 5,135,441 | |||||||||
Total revenues | 81,277,374 | 62,194,658 | 52,628,703 | |||||||||
Interest expense(a) | (5,532,690 | ) | (3,831,380 | ) | (3,650,690 | ) | ||||||
Total Net Revenues | 75,744,684 | 58,363,278 | 48,978,013 | |||||||||
Operating costs and expenses: | ||||||||||||
Execution and clearing(a) | (8,213,722 | ) | (6,868,211 | ) | (4,508,760 | ) | ||||||
Employee compensation and benefits | (16,462,536 | ) | (28,366,044 | ) | (27,475,391 | ) | ||||||
Occupancy, depreciation and amortization | (1,215,248 | ) | (1,800,886 | ) | (2,047,168 | ) | ||||||
Communication and market data(a) | (3,953,961 | ) | (7,733,877 | ) | (6,369,107 | ) | ||||||
Marketing and branding | (12,803,374 | ) | (11,594,222 | ) | (9,956,833 | ) | ||||||
General and administrative | (4,051,434 | ) | (8,527,769 | ) | (4,547,384 | ) | ||||||
Total operating costs and expenses | (46,700,275 | ) | (64,891,009 | ) | (54,904,643 | ) | ||||||
Other income (expense): | ||||||||||||
Others, net | (964,699 | ) | 195,214 | (425,643 | ) | |||||||
Income (loss) before income tax | 28,079,710 | (6,332,517 | ) | (6,352,273 | ) | |||||||
Income tax (expenses) benefits | (7,023,382 | ) | 953,401 | 473,690 | ||||||||
Net income (loss) | 21,056,328 | (5,379,116 | ) | (5,878,583 | ) | |||||||
Net income (loss) attributable to | 21,056,328 | (5,379,116 | ) | (5,878,583 | ) | |||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Unrealized loss on available-for-sale investments | — | — | (265,687 | ) | ||||||||
Changes in cumulative foreign currency translation adjustment | (235,850 | ) | 1,519,564 | 993,440 | ||||||||
Total Comprehensive income (loss) | 20,820,478 | (3,859,552 | ) | (5,150,830 | ) | |||||||
Net income (loss) per ordinary share: | ||||||||||||
Basic | 0.010 | (0.002 | ) | (0.003 | ) | |||||||
Diluted | 0.010 | (0.002 | ) | (0.003 | ) | |||||||
Net income (loss) per ADS (1 ADS represents 15 Class A ordinary shares): | ||||||||||||
Basic | 0.148 | (0.036 | ) | (0.039 | ) | |||||||
Diluted | 0.143 | (0.036 | ) | (0.039 | ) | |||||||
Weighted average number of ordinary shares used in calculating net income (loss) per ordinary share: | ||||||||||||
Basic | 2,128,130,208 | 2,266,866,528 | 2,279,261,602 | |||||||||
Diluted | 2,210,465,791 | 2,266,866,528 | 2,279,261,602 |
(a) Includes the following revenues, costs and expenses resulting from transactions with related parties as follow:
For the three months ended | ||||||||||||
2021 | 2021 | 2022 | ||||||||||
US$ | US$ | US$ | ||||||||||
Revenues: | ||||||||||||
Commissions | 13,334,528 | 4,865,912 | 3,986,037 | |||||||||
Interest related income | ||||||||||||
Financing service fees | 2,239,870 | 2,281,978 | 1,329,490 | |||||||||
Interest income | 9,281,680 | 6,696,241 | 4,692,011 | |||||||||
Other revenues | 5,957,010 | 2,847,951 | 1,805,126 | |||||||||
Interest expense | (4,259,765 | ) | (2,859,934 | ) | (2,056,556 | ) | ||||||
Execution and clearing | (5,908,113 | ) | (3,348,491 | ) | (1,751,505 | ) | ||||||
Communication and market data | — | (25,000 | ) | (25,000 | ) |
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 2021 | 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 | |||||||||||||||||||||||||||||||
1,799,208 | (1 | ) | 5,455,318 | (1 | ) | 3,459,283 | (1 | ) | |||||||||||||||||||||||||||||||
600,000 | (2 | ) | — | (2 | ) | 472,605 | (2 | ) | |||||||||||||||||||||||||||||||
29,870 | (3 | ) | — | (3 | ) | — | (3 | ) | |||||||||||||||||||||||||||||||
Net income (loss) attributable to | 21,056,328 | 2,429,078 | 23,485,406 | (5,379,116 | ) | 5,455,318 | 76,202 | (5,878,583 | ) | 3,931,888 | (1,946,695 | ) | |||||||||||||||||||||||||||
Net income (loss) per ADS - diluted | 0.143 | 0.159 | (0.036 | ) | 0.000 | (0.039 | ) | (0.013 | ) | ||||||||||||||||||||||||||||||
Weighted average number of ADSs used in calculating diluted net income (loss) per ADS | 147,364,386 | 147,364,386 | 151,124,435 | 161,049,884 | 151,950,773 | 151,950,773 |
(1) Share-based compensation.
(2) Impairment loss from long-term investments
(3) Fair value change from convertible bonds
Source:
2022 GlobeNewswire, Inc., source