Futu added 273,000 net paying clients in 2021 Q1, reflects 7x growth YoY

Rhea-AI Summary

Futu Holdings Limited (Nasdaq: FUTU) reported outstanding results for Q1 2021, with total revenue soaring 349.4% YoY to $283.6 million, marking triple-digit growth for five quarters. Non-GAAP adjusted net income surged 6.3 times to $151.7 million. The user base expanded to 14.2 million, a 69.7% increase, with paying clients rising 231.0% to 789,652. Trading volume jumped 277.5% YoY to $289.0 billion, driven by U.S. stocks, which made up 63% of this volume.

Positive

• Total revenue increased 349.4% YoY to $283.6 million.
• Non-GAAP adjusted net income up 6.3 times YoY to $151.7 million.
• User base reached 14.2 million, up 69.7% YoY.
• Paying clients increased 231.0% YoY to 789,652.
• Total trading volume soared 277.5% YoY to $289.0 billion.

Negative

• None.

Operational highlights of the unaudited financial results for the first quarter ended March 31, 2021:

• Total revenue in the first quarter increased 349.4% year-over-year ("YoY") to $283.6 million, achieving triple-digit growth for five consecutive quarters.
• Non-GAAP adjusted net income^[1] was up 6.3 times YoY to $151.7 million.
• The number of Futu users reached 14.2 million, an increase of 69.7% YoY; the number of registered clients reached 1,957,436, an increase of 140.2% YoY; the number of Futu's paying clients reached 789,652, an increase of 231.0% YoY.
• During Q1, Futu's total trading volume soared 277.5% YoY to $289.0 billion.

PALO ALTO, Calif., May 19, 2021 /PRNewswire/ -- Futu Holdings Limited ("Futu" or the "Company") (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, announces its unaudited financial results for the first quarter ended March 31, 2021 ("Q1").

Futu continued to deliver strong growth during Q1, with total revenues increasing 349.4% year- over-year ("YoY") to $283.6 million, reflecting triple-digit growth for five consecutive quarters. Non-GAAP adjusted net income was up 6.3 times YoY to $151.7 million.

Relying on its superior product experience and laser focus on meeting diverse investment needs, the Company achieved historic business expansion worldwide. As of the first quarter, the total number of paying clients increased 231.0% YoY to 789,652. Net paying client addition was approximately 273,000, almost a 7x increase compared to the 40,000 net paying client addition recorded for the first quarter of 2020. Seventy percent of new net paying clients came from high growth markets – namely Hong Kong, Singapore and the US; the total number of users increased 69.7% YoY to 14.2 million, and the number of registered clients increased 140.2% YoY to 1,957,436. In addition to rapid client base expansion, client retention remained high at 98.2% during Q1. And  as of March 31, 2021 total client assets reached $59.4 billion, a YoY increase of 367.6%. In the first quarter, clients' trading activity continued to thrive with Daily Average Revenue Trades (DARTs) increasing 321.0% YoY to 902,533.

During Q1, all three business segments recorded 3-times growth: Brokerage commission and handling charge income increased 342.8% YoY to $170.4 million; interest income was $84.7 million, an increase of 355.8%; and other income (including wealth management, enterprise services, etc.) increased by 370% YoY to $28.4 million.

[1] Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses.

Quarterly trading volume soared to $289.0 billion, US stocks business continued to ramp up

Total trading volume in the first quarter of 2021 increased 277.5% YoY to $289.0 billion, in which trading volume for US stocks was $180.9 billion. US stocks accounted for 63% of the total trading volume, a new milestone reflecting Futu's competitive advantage as a one-stop global investment platform.

During Q1, Futu launched the innovative "2020 Q4 Earnings Analysis" session, which provides content related to different Nasdaq listed companies, such as NIO Inc., XPeng Inc., Baidu Inc., KE Holdings Inc., etc. From a market accessibility perspective, Futu empowers clients to seize investment opportunities by supporting 24/7 US market updates, where global financial news and stock analysis are all at users' fingertips. Further propelled by an active investment community wherein millions of users seamlessly exchange thoughts and ideas to help make informed investment decisions, Futu's US stock business continues to thrive.

Futu is constantly improving the user investment experience with continuous product updates. In the first quarter, Futu fully launched Global Futures and further enhanced trading categories, with a focus on Hong Kong, US and Singapore futures products. In keeping with the mission of "making investing easier and not alone," Futu also provides complimentary global market data, such as Hong Kong Stocks, US Stocks and China A-shares stock market quotes, as well as easy-to-use investing tools.

Futu capitalizes on global market opportunities with rapid expansion in the US and Singapore

Futu has rapidly expanded in high-growth financial markets around the world, such as Hong Kong, Singapore and the US, where paying clients on a net basis accounted for more than 70% of growth in Q1.

Executing against its mission to become an influential global financial services platform, Futu secured multiple licenses covering major financial markets, improved its products, R&D and operations and has continuously improved the investment experience of individual investors. In addition to deepening its presence in the US, in the first quarter, Futu announced that it officially entered the Singapore market as the headquarters of South East Asia market and launched the international version of the Futu APP, moomoo. The moomoo app provides Singapore investors with a new, one-stop investment experience, complete with investment transactions, up-to-date news, real-time market data and trading community interaction.

Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee, said, "Our outperformed growth this quarter reflects an important milestone in Futu's global expansion strategy and serves as a solid proof point in support of prioritizing our users' needs. As the one-stop platform in connecting 14 million users and global financial markets, Futu never ceases to pursue a better investment experience with its relentless efforts in driving technology innovation across products and services offering, as well as extending the brand's reach with licensing. For the next quarter, we will continue to execute our global expansion strategy, aiming to connect more individual investors, corporates and asset managers worldwide as the leading global platform cultivating interactions between the investor and capital markets communities."

Outstanding performance in Enterprise Services helps more than 100 China concept stocks list on US and Hong Kong stock markets

During Q1, FUTU I&E accelerated the delivery of a variety of value-added services in IPO distribution and new-gen of investor and public relations services. As of the first quarter, Futu provided IPO distribution and IR services to 152 companies and has helped more than 100 new economy companies, including Baidu Inc., Bilibili Inc., and Kuaishou Technology, successfully enter the US and Hong Kong stock markets. During Q1, Futu underwrote all new economy China concept stocks listed in the US and those new economy companies that returned to Hong Kong for secondary listings.

As of the first quarter, FUTU I&E marked a new milestone of a total 200 ESOP solution clients, including leading companies in the healthcare, consumer & retail, automotive, logistics and TMT industries. By providing new economy and traditional enterprises with a full suite of services from granting, vesting, exercise, and settlement of the stock awards, FUTU I&E has become the preferred one-stop ESOP solution provider for leading companies across all industries.

In its wealth management business, Money Plus saw assets under management reach US$1.68 billion during Q1, a YoY increase of 108.0%. During Q1, Money Plus established new partnerships with four reputable asset managers, namely Wells Fargo, Income Partners, Aberdeen Standard and BNY Mellon. Money Plus also had more than 40 global top fund company partners.

About Futu Holdings Limited

Futu Holdings Limited ("Futu") (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering a fully digitized brokerage and wealth management platform. Futu provides investing services - including stock trading and clearing, margin financing, wealth management, market data and information, and interactive social features for Hong Kong, US and China Connect stocks - to individual investors through its proprietary one-stop digital platforms, Futubull and moomoo. Futu also provides Employee Stock Ownership Plan (ESOP) solutions and IPO distribution services through its enterprise service brand FUTU I&E, with a focus on providing employee stock ownership plans to corporate clients.

Futu aims to become an influential financial services platform globally, by building a complete financial technology ecosystem with the mission of "making investment easier and not alone." For more information about Futu, please visit the www.futuholdings.com.

About Moomoo Inc.

Headquartered in Palo Alto, California, Moomoo Inc. is an indirect wholly-owned subsidiary of Futu Holdings Limited (Nasdaq: FUTU), with its mission to transform personal investing experience with an intuitive user interface, fully digitized trading platform in the US and globally. 

View original content to download multimedia:http://www.prnewswire.com/news-releases/futu-added-273-000-net-paying-clients-in-2021-q1--reflects-7x-growth-yoy-301294738.html

SOURCE Futu Holdings Limited

FAQ

What were Futu's total revenues for Q1 2021?

Futu's total revenues for Q1 2021 were $283.6 million, a 349.4% increase year-over-year.

How much did Futu's net income increase in Q1 2021?

Non-GAAP adjusted net income increased 6.3 times year-over-year to $151.7 million.

What is the growth rate of paying clients for Futu in Q1 2021?

Futu's paying clients grew by 231.0% year-over-year, reaching 789,652.

What percentage of Futu's trading volume was from US stocks in Q1 2021?

In Q1 2021, US stocks accounted for 63% of Futu's total trading volume.

How many new clients did Futu add in Q1 2021?

Futu added approximately 273,000 net paying clients in Q1 2021.