Futu Records US$292.3 Million Total Revenues for Fourth Quarter 2022, a YoY Increase of 42.3%

Rhea-AI Summary

Futu Holdings Limited (NASDAQ: FUTU) reported robust financial results for Q4 2022, with total revenues reaching US$292.3 million, a 42.3% year-over-year increase. The full-year results also showcased growth, totaling US$976 million in revenues. Key performance indicators included a 90.2% increase in non-GAAP adjusted net income to US$130 million for Q4, and a client assets surge to US$53.5 billion. Moomoo achieved significant user growth, expanding total users by 12.7% to 19.58 million, while its client engagement and wealth management segments demonstrated strong momentum, contributing to these positive outcomes.

Positive

• Total revenues of US$292.3 million for Q4 2022, up 42.3% YoY.
• Annual revenues reached US$976 million, reflecting strong growth.
• Non-GAAP adjusted net income surged by 90.2% to US$130 million in Q4.
• Client assets increased to US$53.5 billion, a healthy sign of investor confidence.
• Total registered clients grew 17.5% to 3.23 million, with paying clients rising by 19.5%.
• Client assets in wealth management business grew 68% YoY to US$4.05 billion.

Negative

• None.

 Its subsidiary moomoo further diversifies businesses and sharpens long-term globalization strategy in Q4

PALO ALTO, Calif., March 28, 2023 /PRNewswire/ -- Moomoo's parent company Futu Holdings Limited (Nasdaq: FUTU) ("Futu", the "Company"), a leading tech-driven digital brokerage and wealth management platform, reported its unaudited financial results for the fourth quarter of 2022. The Company recorded US$292.3 million (HK$2.28 billion) total revenues and US$130 million (HK$1.01 billion) non-GAAP adjusted net income, representing a year-over-year increase of 42.3% and 90.2% respectively. 

The Company recorded US$976 million (HK$7.61 billion) total revenues and US$401.4 million (HK$3.13 billion) non-GAAP adjusted net income for full year ended December 31, 2022.

Strategic highlights of the fourth quarter:

• As of quarter end, the total number of users of moomoo and its sister brand Futubull increased 12.7% year-over-year to 19.58 million.
• Total number of registered clients increased 17.5% year-over-year to 3.23 million.
• Total number of paying clients increased 19.5% year-over-year to 1.49 million.
• By the end of the fourth quarter, the total client assets amounted to US$53.5 billion (HK$417.5 billion). In Singapore, the total client assets increased by 45.4% year-over-year.
• The quarterly client retention rate remained high at 98%.
• Corporate services maintained strong momentum with ESOP clients totaling 638, an increase of 59% sequentially.
• According to a third-party data provider, Futu has participated in 41 IPO projects as their sponsor, bookrunner, underwriter, global coordinator or lead manager for Hong Kong listed companies, ranking first across the industry in 2022.
• Total client assets in Futu's wealth management business achieved US$4.05 billion (HK$31.58 billion) in the fourth quarter, representing a 68% growth from the previous year. The company has collaborated with 73 world-renowned global financial institutions in offering diverse fund products to clients, with five new partners onboarded this quarter.

"In the fourth quarter of 2022, we focused on long-term globalization plans and sharpened our product and service offerings to meet various demands from investors of all kinds. The financial results for the fourth quarter reflect stable business operation and momentum in our wealth management business and corporate services," said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO and Chairman of the Technology Committee.

In November, the Company was pleased to announce that it was ranked 2^nd on Fortune's "100 Fastest-Growing Companies" list of 2022, thanks to its outstanding operational performance. Futu is the top-ranked financial company on the list (View Disclosures at the end).

Futu Becomes the Go-To Trading Platform Across Generations with a 14% Surge in Senior Investor Activity

As a pioneering fintech brokerage in Hong Kong, Futu has further strengthened its leading position by garnering higher recognition from investors of all ages in the fourth quarter. Its number of users continued to grow, representing 43% of the HK adult population ^[1] in Q4. Additionally, investors aged 45 and above showed increased activity, with a 14% increase of trading frequency as compared to the previous quarter.

Futubull, Futu's proprietary one-stop digital financial services platform in Hong Kong, has made investing in various asset classes more accessible. In 2022, investors were able to subscribe to the Hong Kong SAR government's Green Bond and Silver Bond through this platform, further cementing Futu's position as a preferred bond subscription platform in Hong Kong.

Futu also participated in the flagship event of the fintech industry, FinTech Week 2022, in Hong Kong, where it showcased its innovative solutions for business development, corporate services, and product extension. In addition, the company organized an investment forum in November that was attended by experts from renowned partnered fund houses and other institutions, which was well-received by participants.

Moomoo Captures 25% of Market Share in Singapore

During the fourth quarter, moomoo, Futu's overseas one-stop investment super app, deepened its market penetration in the Singapore market with its user number surpassing 25% of the local population aged between 20 to 70 ^[2].

With financial literacy slated to play a greater role in advancing financial inclusion, the Company is cognizant of rolling out a school-focused program, giving students first-hand exposure to digitalized investing and personal finance. In the fourth quarter, moomoo partnered with tertiary institutions namely National University of Singapore, Nanyang Technological University, Singapore Management University and Singapore University of Social Sciences to equip students with essential financial knowledge via seminars and workshops. Moomoo seeks to foster greater financial inclusion by imparting knowledge of personal finance, investing fundamentals and trading psychology, empowering the future pillars with a better financial and digital savviness for both personal and wealth growth.

To benefit the wider community, moomoo also engaged fund houses, asset management companies and other industry partners to conduct about 10 Lunch & Learn investing seminars and made all the course content available publicly.

Moomoo's Pursuit of Technology Innovation Is Recognized by the Market

Moomoo continued to gain popularity in the US with its relentless efforts to drive technology innovation to transform investing experience. During the fourth quarter, the moomoo app launched new features, supporting bracket orders for Hong Kong and US listed stocks and Automated Customer Account Transfer Service (ACATS).

In December, moomoo received Benzinga's 2022 Best Investment Research Tech Award (View Disclosures at the end). The award is in recognition of moomoo's commitment to enabling smarter trading through its digital financial services platform with comprehensive data, strategic insights and advanced tools.

The brand kept its growth momentum with creative events. During the holiday season, moomoo launched the $60,000 Holiday Magic Sweepstakes campaign, which had attracted more than 12,000 US participants by December 14.

New Moomoo Features Continue to Help Diversify Australian Investors' Portfolio

In the fourth quarter, moomoo Australia launched Hong Kong stock trading feature, enabling its clients to further diversify their portfolios. Investors can now trade AU, US and Hong Kong shares and ETFs on the one-stop platform, with full access to moomoo's suite of professional-level analytics tools.

Moomoo Australia also introduced an Earnings Calendar feature in the fourth quarter. Investors can simply tap and follow to gain access to earnings information about US, Australia or Hong Kong SAR listed companies and A-share listed companies.

Wealth Management Business Reached a New Milestone with AUM Exceeding HK$30 Billion

Futu's wealth management business AUM had reached $4.05 billion (HK$31.58 billion) by the end of the fourth quarter, an increase of 68% year-over-year. The AUM in mutual funds and alternative assets (incl. bonds) realized a year-over-year growth of 61% and 183% respectively.

In Singapore, the wealth management AUM increased by 64.2% from the previous quarter, with paying clients going up 75.1% sequentially. Moomoo added private investment funds and structured notes to its product offerings, further diversifying its product mix. The app also expanded its capability by enabling the rebalancing feature for model portfolios and a more comprehensive SmartSave feature, which helps investors to better manage their idle funds.

In Hong Kong, investors can trade US Treasuries via Futubull, with a minimum purchase amount of $1,000. Investors can also read weekly Market Outlook produced by Futu analysts to have a more in-depth understanding of the market.

Futu's wealth management business continued to deepen its cooperation with more well-known global financial institutions. By the end of 2022, the business had partnered with 73 global financial institutions, including five new partners onboarded in the fourth quarter. In December, Futu's wealth management platform Money Plus became the first distributor of a BlackRock fund in Hong Kong and successfully raised funds for a deal-by-deal private equity fund as its exclusive distributor.

Corporate Services Business Achieves Milestones in 2022

According to third-party financial data provider Wind, Futu has participated in 41 Hong Kong listed initial public offerings (IPOs) as their sponsor, bookrunner, underwriter, global coordinator or lead manager, ranking first across the industry in 2022. Meanwhile, Futu was entrusted by China Tourism Group Duty Free Corporation, Tianqi Lithium and CALB, the top three Hong Kong listed IPOs in terms of subscription amount in 2022, to be their corporate services provider.

Moomoo Financial Singapore Pte. Ltd (moomoo SG) took part in the IPO project of NoonTalk Media Limited as its sub placement agent, as well as acted as a participating dealer for the listing of UOBAM Ping An ChiNext ETF, and CSOP CSI STAR and CHINEXT 50 Index ETF.

Meanwhile, Futu's employee stock ownership plan service debuted in Singapore, marking another milestone for the Company's globalization strategy.

By the end of the fourth quarter, more than 1,500 investing institutions, financial media and listed companies had opened their Futu Page in Futu's highly interactive community. More than 500 companies had joined the earnings season events offering over 900 live streams. Futu is also devoted to enhancing the communication between listed companies and investors by holding industry roundtables and reward-based discussions.

Building Social Accountability Through Engagements with Communities

Futu is committed to social responsibility. On its tenth anniversary, the Company partnered with Make-A-Wish International (MAW), the charity organization that helps fulfill the wishes of children diagnosed with a life-threatening illness. The Company, together with MAW, will bring joy and hope to eligible children from Singapore, Hong Kong SAR, the US and Australia.

In aid of the MAW Foundation, an additional fundraising virtual stock trading contest was held in Singapore, attracting over 15,000 participants. In Hong Kong, an offline charity fete was also organized by the Company to raise more funds, helping wish kids in need realize their dreams.

Futu encourages its employees to participate in their community through volunteer work. In Hong Kong SAR, around 100 people, including Futu staff and children, joined the beach clean-up volunteer activity in November.

Meanwhile, the Company continues pursuing the goal of empowering investors of all kinds with better financial literacy. By the end of the fourth quarter, the Company had rolled out more than 3,200 online courses in multiple languages, including 1,249 on moomoo. More than 480,000 users had taken investing courses on moomoo and Futu's other platforms during the fourth quarter.

[1] HK adult population refers to the 2022 year-end number reported by the Census and Statistics Department of the HKSAR government.

[2] Adults include locals aged 20 to 70; the adult population is from the Singapore Department of Statistics' population data by H1 2022

 

Disclosures 

Accolades are not indicative of future performance. Futu is not affiliated with Fortune. For more information, please visit https://fortune.com/franchise-list-page/methodology-fastest-growing-companies-2022

Accolades are not indicative of future performance. Moomoo Technologies Inc. is not affiliated with Benzinga. For additional information, please visit: https://www.benzinga.com/events/fintech-awards/winners/

About moomoo

Moomoo is a next-generation one-stop digital financial services platform created by Moomoo Technologies Inc., a fintech company based in Palo Alto, California.

Moomoo integrates trading, market data, and social networking with advanced features, such as AI-powered analytics and anomaly detection functions. It supports free online account-opening and provides access to trade stocks and ETFs in multiple global markets such as the United States, Hong Kong SAR, Singapore, and Australia. Moomoo and its brand affiliates also offer rich investor education content and an interactive online community with over 18 million users in more than 200 countries globally.

Moomoo is an indirect wholly owned subsidiary of Futu Holdings Limited, a Nasdaq-listed fintech company headquartered in Hong Kong SAR.

For more information, please visit moomoo's official website at www.moomoo.com.

About Futu

Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering a fully digitalized brokerage and wealth management platform. The Company primarily serves the emerging affluent population, pursuing a massive opportunity to facilitate a once-in-a-generation shift in the wealth management industry and build a digital gateway into broader financial services. The Company provides investing services through its proprietary digital platforms, Futubull and moomoo, each a highly integrated application accessible through any mobile device, tablet, or desktop. The Company's primary fee-generating services include trade execution—which allows its clients to trade securities, such as stocks, ETFs, warrants, options, and futures across different markets—as well as margin financing and securities lending. Futu features embedded social media tools creating a network centered around its users and providing an investment community for users, investors, companies, analysts, media, and key opinion leaders.

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SOURCE Futu Holdings

FAQ

What are Futu's Q4 2022 financial results?

Futu Holdings reported total revenues of US$292.3 million for Q4 2022, a 42.3% increase year-over-year.

How did Futu perform for the full year 2022?

For the full year ended December 31, 2022, Futu reported total revenues of US$976 million.

What is the user growth for Futu's moomoo platform?

As of the quarter end, moomoo's user base increased by 12.7% year-over-year, totaling 19.58 million users.

What is the non-GAAP adjusted net income for Futu in Q4 2022?

Futu's non-GAAP adjusted net income for Q4 2022 was US$130 million, showcasing a 90.2% increase year-over-year.

How much did Futu's client assets grow in Q4 2022?

Futu's total client assets amounted to US$53.5 billion by the end of Q4 2022.