Moomoo's Parent Company Futu Holdings Reports US$303.8 M and US$1.281 B in Revenues for Q4 and for Full Year 2023

Rhea-AI Summary

Futu Holdings Ltd. announces impressive Q4 2023 earnings with revenues of US$303.8 million, up 4.1% YoY, and non-GAAP adjusted net income of US$121.7 million. The Company's overseas digital brokerage brand, moomoo, sees significant growth with 21.64 million global users and 1.71 million paying clients. Futu expands into new markets, achieves profitability in Singapore, and introduces innovative product offerings in the US and Australia.

Insights

Financial Analyst

Futu Holdings Ltd.'s reported revenue and non-GAAP adjusted net income growth are indicative of strong financial health and market expansion. The YoY increase in revenue and adjusted net income by 31.4% and 45.9%, respectively, signifies a robust growth trajectory that outpaces many traditional financial service providers. This performance is particularly compelling given the backdrop of a competitive digital brokerage landscape. The reported retention rate of 98% for paying clients and the significant growth in total client assets suggest a loyal customer base and increasing trust in the company's services, which is crucial for long-term sustainability.

The launch of Moomoo MY and the rapid acquisition of over 30,000 new clients underscore the company's aggressive international expansion and its ability to scale quickly in new markets. Such milestones are not just operational achievements but also strategic moves that can lead to diversified revenue streams and risk mitigation against market-specific headwinds. The growth in high-net-worth clients in Singapore and the recognition by industry awards point towards a successful penetration into the premium segment of the market, which typically offers higher margins.

Market Research Analyst

The increase in global users and paying clients for Futu's moomoo platform reflects a broader trend in the democratization of investment and the growing appetite for digital financial services. The company's strategic partnerships, such as the collaboration with CBOE Global Markets, are likely to enhance product offerings and attract a demographic interested in more sophisticated investment products like index options. The recognition by Benzinga and Money magazine not only serves as a testament to moomoo's platform capabilities but also acts as a marketing tool that can improve brand perception and aid in customer acquisition efforts.

Furthermore, the rapid user growth in new markets like Malaysia and Canada, as well as the introduction of new features in Australia, demonstrate Futu's ability to localize its offerings and cater to specific market needs. This level of customization is essential for user engagement and retention, as evidenced by the increase in daily active users and the success of educational initiatives like Moo Learn. The company's technology advancements, such as the patented Charting Tools feature, highlight a commitment to innovation that is likely to resonate with tech-savvy investors and maintain a competitive edge.

Economist

The reported earnings and strategic moves by Futu Holdings Ltd. can be seen as a reflection of broader economic trends, such as the globalization of financial markets and the increasing importance of FinTech innovation. The company's significant AUM growth amidst rallies in various equity markets indicates a strong correlation with overall market performance and investor sentiment. As global markets recover and investor confidence returns, platforms like moomoo are well-positioned to capitalize on increased trading activity.

The entry into the Malaysian market and the swift growth in that region suggest that there is untapped potential in emerging markets for digital brokerage services. The ability to quickly adapt and offer relevant products, such as the Cash Plus solution in Australia, demonstrates agility in responding to changing economic conditions, such as fluctuating interest rates. Such responsiveness is key to maintaining relevance and competitive advantage in a rapidly evolving global financial landscape.

JERSEY CITY, N.J., March 14, 2024 /PRNewswire/ -- Moomoo's parent company Futu Holdings Ltd. ("Futu" or "the Company"), a leading tech-driven online brokerage and wealth management platform, announced its unaudited Q4 2023 earnings with US$303.8 million in revenues, up 4.1% year-over-year ("YoY") and US$121.7 million in non-GAAP adjusted net income.

For the year ended December 31, 2023, the Company recorded US$1.281 billion in revenues and US$585.1 million in non-GAAP adjusted net income, representing a YoY increase of 31.4% and 45.9%, respectively.

According to the earnings results, the Company's overseas digital brokerage and investment brand moomoo, alongside with its sister brands, had amassed 21.64 million global users and 1.71 million paying clients by the end of 2023, up 10.5% and 15.0% respectively, compared to the previous year. During the full year 2023, the Company had acquired more than 220,000 new paying clients, including over 59,000 newly added in the fourth quarter, a growth of 41.0% compared to that of Q4 2022. 

Meanwhile, the paying client retention rate remained strong at 98%, with the total client assets achieving US$62.164 billion, up 16.3% YoY.

The Company also mentioned that the net increases in paying client acquisitions and AUM recorded for the first two months of 2024 have already exceeded those of the fourth quarter in 2023, due to rallies in various equity markets.

In February 2024, Futu Malaysia Sdn. Bhd. ("Moomoo MY") commenced its trading services, marking a significant milestone as it is among the first global digital brokerage firm to be granted the Capital Market Services License by the Securities Commission Malaysia. Within a week of its launch, Moomoo MY attracted over 30,000 new clients, marking another notable achievement in the Company's globalization strategy across Southeast Asia.

During the fourth quarter, Futu's affiliate companies achieved new accomplishments as its business expanded into more markets with more diverse product offerings to meet the multiple demands of global investors. At this stage, Futu's overseas affiliate companies provide stock trading and financial services in the US, Australia, Singapore, Japan, Canada and Malaysia.

Moomoo Singapore Achieves Profitability for First Time on a Quarterly Basis, Shows Strong Growth in High-Net-Worth Segment

In Singapore, moomoo continues to lead the way for the retail industry, with several key indicators ranking first among its peers. According to third-party data provider Data.ai, moomoo has achieved the highest number of accumulated downloads among stock trading apps in the Singapore market as of December 31, 2023, and recorded the highest number of daily active users (DAUs) among stock trading apps in the Singapore market from January 1 to December 31, 2023.

At the end of Q4, Moomoo Singapore (Moomoo SG) recorded profit on a quarterly basis and recorded AUM growth of 115.8% on a YoY basis. Notably, the average account balance of Singapore paying clients surpassed S$17,000 at the end of 2023, with a strong growth in the high-net-worth segment.

Moomoo SG was selected as the winner of Best Retail Broker Award, a testament to its hard work in delivering the best investment platform and investing experience for Singapore clients, by the Securities Investors Association (Singapore).

In addition, Moomoo SG was a sponsor for the SGX Cares Bull Charge Charity Run, as well as a series of financial literacy programs, as we seek to make a positive social impact on the community that we operate in.

Moomoo Empowers Investors in US and AU with Various Product Offerings and Investing Tools, Garnering Praises From Local Markets

To help fulfill many investors' surging demand of option trading in the US, moomoo announced its collaboration with CBOE Global Markets (CBOE) to offer index options products to eligible US moomoo brokerage customers. The collaboration represents a major breakthrough in moomoo's mission to expand the options market's accessibility for both current and potential customers.

Meanwhile, Moomoo US updated its Cash Sweep program in the US, with a compelling annual percentage yield ("APY") for eligible clients, expanding the toolkit to help boost the cash management efficiency of their securities accounts.

In December, 2023 Global FinTech Awards, powered by the renowned financial media Benzinga, granted moomoo the Best Day Trading Software award, marking moomoo being named a Benzinga Fintech award winner in various categories for three years in a row.

In Australia, the renowned financial magazine Money awarded moomoo the prestigious title of Best of the Best 2024 - Online Broker Rising Star. This tribute recognizes moomoo as a cutting-edge trading platform, providing Australian investors with access to global markets and an array of innovative trading tools to enhance their trading and investment experiences.

During the fourth quarter, moomoo introduced additional features to enhance Australian investors' journey. The notable launching of US stock Insider Activity and Candlestick Patterns empower investors to swiftly analyze market data and make informed decisions within moomoo's all-in-one platform. Furthermore, moomoo's Charting Tools feature received a patent from IP Australia, solidifying its commitment to cutting-edge technology.

Starting from December 2023, Moomoo AU introduced the Cash Plus wealth management solution to Australian clients. This additional cash management tool equips investors to navigate the high-interest rate environment prevailing in Australia.

Brand Impact and Technology Advancements Enable Moomoo to Rapidly Gain Tractions in Newly Launched Markets

Within six months of its entry into Malaysia, moomoo became the leading investment and trading platform ranking number one in accumulated downloads. (Based on Data.ai's comparison of stock trading apps on Apple and Google app stores as of December 31, 2023). Additionally, in the fourth quarter, Moomoo MY hosted a stock paper trading competition supported by Bursa Malaysia, attracting almost 5,000 participants.

In the fourth quarter, the number of moomoo registered users in Canada increased 258% QoQ. Based on the Data.ai's comparison from October 1 to December 31, 2023, moomoo climbed to the second place of Android stock trading app downloads ranking in the Canada market.

In the fourth quarter, Moomoo Japan introduced US stock trading services to Japan, further enriching the spectrum of investments for Japanese investors. Thanks to moomoo's comprehensive and localised operation strategy, moomoo app's daily active user (DAU) level consistently shattered records in Japan, based on Data.ai's data between October 1 and December 31, 2023.

Furthermore, moomoo's Moo Learn investing courses and community provide immersive learning experience to global moomoo users, including non-English speaking countries and areas in Japan, Canada and Malaysia. In Q4, the number of Moo Learn users jumped 71.44% QoQ.

About moomoo

Moomoo is a leading global investment and trading platform dedicated to empowering investors with user-friendly tools, data, and insights. Our platform is designed to provide essential information and technology, enabling users to make well-informed investment decisions. With advanced charting tools, pro-level analytical features, Moomoo evolves alongside our users, fostering a dynamic community where investors can share, learn, and grow together.

Founded in the US, Moomoo operates globally, serving investors in countries such as the US, Singapore, Australia, Japan, Canada and Malaysia. As a subsidiary of a Nasdaq-listed company, we take pride in our role as a global strategic partner of the New York Stock Exchange (NYSE), earning numerous international accolades from renowned industry leaders such as Best Trading Technology 2021, Best Investment Research Tech 2022, and Best Active Trading App 2021 awards from Benzinga and the Best Trading Platform 2022 award from Fintech Breakthrough. Moomoo has also received multiple awards in the US, Singapore, and Australia for its cutting edge, inclusive approach to investing.

For more information, please visit moomoo's official website at www.moomoo.com or feel free to email: pr@moomoo.com.

About Futu

Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services.

Disclosure

Options trading is risky and not appropriate for everyone. Read the Options Disclosure Document (j.us.moomoo.com/00xBBz) before trading. Supporting docs for any claims will be furnished upon request.

View original content to download multimedia:https://www.prnewswire.com/news-releases/moomoos-parent-company-futu-holdings-reports-us303-8-m-and-us1-281-b-in-revenues-for-q4-and-for-full-year-2023--302089216.html

SOURCE moomoo

FAQ

What were Futu Holdings Ltd.'s Q4 2023 revenues?

Futu Holdings Ltd.'s Q4 2023 revenues were US$303.8 million, up 4.1% YoY.

How many global users and paying clients does moomoo have?

Moomoo has 21.64 million global users and 1.71 million paying clients.

In which markets does Futu's overseas affiliate companies provide services?

Futu's overseas affiliate companies provide services in the US, Australia, Singapore, Japan, Canada, and Malaysia.

What milestone did Futu achieve in Malaysia in February 2024?

Futu achieved a significant milestone in Malaysia by commencing trading services through Moomoo MY, attracting over 30,000 new clients.

What award did Moomoo SG win in Singapore?

Moomoo SG won the Best Retail Broker Award in Singapore.

What collaboration did moomoo announce in the US for option trading?

Moomoo announced a collaboration with CBOE Global Markets to offer index options products to eligible US moomoo brokerage customers.

What award did moomoo receive in the Global FinTech Awards 2023?

Moomoo received the Best Day Trading Software award in the Global FinTech Awards 2023.

What new feature did moomoo introduce for Australian investors?

Moomoo introduced US stock Insider Activity and Candlestick Patterns for Australian investors.

How did moomoo perform in newly launched markets like Malaysia and Canada?

Moomoo became the leading investment platform in Malaysia and climbed to the second place of Android stock trading app downloads ranking in Canada.

What learning experience does moomoo provide to its users?

Moomoo provides immersive learning experience through Moo Learn investing courses and community, with a 71.44% increase in users in Q4.