UP Fintech Holding Limited Reports Unaudited First Quarter 2022 Financial Results
UP Fintech (NASDAQ: TIGR) reported a 35.2% decrease in total revenues for Q1 2022, totaling US$52.6 million due to declining trading volumes. Net loss attributable to the company was US$5.9 million, down from a net income of US$21.1 million year-over-year. Despite challenging market conditions, the company added 30,150 funded accounts, increasing total accounts to 703,500, reflecting an 87.1% year-over-year growth. The firm also experienced a net asset inflow of US$3.5 billion.
- Added 30,150 funded accounts, a 87.1% increase year-over-year.
- Net asset inflow of US$3.5 billion demonstrates user confidence.
- Total revenues decreased 35.2% year-over-year to US$52.6 million.
- Net loss attributable to UP Fintech was US$5.9 million compared to net income of US$21.1 million in the prior year.
SINGAPORE, June 10, 2022 (GLOBE NEWSWIRE) -- UP Fintech Holding Limited (NASDAQ: TIGR) (“UP Fintech” or the “Company”), a leading online brokerage firm focusing on global investors, today announced its unaudited financial results for the first quarter ended March 31, 2022.
“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 U.S and Federal Reserve tightening,” stated Mr. Wu Tianhua, CEO and Director of UP Fintech, “Total revenues were US
We added 30,150 funded accounts this quarter, bringing total number of funded accounts to 703,500, an increase 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 Singapore equities, which will lower clearing and custodian cost for our Singapore users in the future. For U.S. securities, by the end of the first quarter, over
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 U.S equity issuance. We also added 25 ESOP clients in the first quarter and serve 338 ESOP clients in total as of March 31, 2022. In wealth management, we continued to add new funds to our Fund Mall to provide users with diversified investment options.
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 was US
$5.9 million compared to a net income of US$21.1 million in the same quarter of last year. - Non-GAAP net loss attributable to UP Fintech was US
$1.9 million , compared to a non-GAAP net income of US$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 | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 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 US
Commissions were US
Financing service fees were US
Interest income was US
Other revenues were US
Interest expense was US
OPERATING COSTS AND EXPENSES
Total operating costs and expenses were US
Execution and clearing expenses were US
Employee compensation and benefits expenses were US
Occupancy, depreciation and amortization expenses were US
Communication and market data expenses were US
Marketing and branding expenses were US
General and administrative expenses were US
NET LOSS/INCOME ATTRIBUTABLE TO UP FINTECH HOLDING LIMITED
Net loss attributable to UP Fintech was US
Non-GAAP net loss attributable to UP Fintech, which excludes share-based compensation, impairment loss from long-term investments and fair value change from convertible bonds, was US
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 March 31, 2022, the Company had a total of 2,292,492,101 Class A and B ordinary shares outstanding, or the equivalent of 152,832,807 ADSs.
CERTAIN OTHER FINANCIAL ITEMS
As of March 31, 2022, the Company's cash and cash equivalents and term deposits were US
As of March 31, 2022, the allowance balance of receivables from customers was US
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 | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 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. Lei Huang has tendered his resignation as a director of the Company, effective on June 9, 2022, due to personal reasons. Mr. Huang remains the CEO of US Tiger Securities Inc and TradeUP Securities, Inc. and he will focus on the Company’s business operation in the U.S.A. His resignation did not result from any disagreement with the Company.
Conference Call Information:
UP Fintech’s management will hold an earnings conference call at 8:00 AM on June 10, 2022, U.S. Eastern Time (8:00 PM on June 10, 2022 Singapore/Hong Kong Time).
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 June 18, 2022. Dial-in numbers for the replay are as follows:
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 UP Fintech Holding Limited and non-GAAP net loss or income per ADS - diluted as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”). We define non-GAAP net loss or income attributable to UP Fintech Holding Limited as net loss or income attributable to UP Fintech Holding Limited excluding share-based compensation, impairment loss from long-term investments and fair value change from convertible bonds. Non-GAAP net loss or income per ADS - diluted is non-GAAP net loss or income attributable to UP Fintech Holding Limited divided by the weighted average number of diluted ADSs.
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 UP Fintech Holding Limited enables our management to assess our operating results without considering the impact of share-based compensation, impairment loss from long-term investments and fair value change from convertible bonds. We also believe that the use of these non-GAAP financial measures facilitates investors' assessment of our operating performance.
These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expenses that affect our operations. Share-based compensation, impairment loss from long-term investments and fair value change from convertible bonds have been and may continue to be incurred in our business and are not reflected in the presentation of non-GAAP net loss or income attributable to UP Fintech Holding Limited. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.
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 UP Fintech Holding Limited or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review these historical non-GAAP financial measures in light of the most directly comparable GAAP measures. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing our data comparatively. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
About UP Fintech Holding Limited
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 U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as “may,” “might,” “aim,” “likely to,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements or expressions. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward−looking statements. The Company may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including the earnings conference call. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the cooperation with Interactive Brokers LLC and Xiaomi Corporation and its affiliates; the Company’s ability to effectively implement its growth strategies; trends and competition in global financial markets; changes in the Company’s revenues and certain cost or expense accounting policies; the effects of the global COVID-19 pandemic; and governmental policies and regulations affecting the Company’s industry and general economic conditions in China, Singapore and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC, including the Company’s annual report on Form 20-F filed with the SEC on April 28, 2022. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Further information regarding these and other risks is included in the Company’s filings with the SEC.
For investor and media inquiries please contact:
Investor Relations Contact
UP Fintech Holding Limited
Email: ir@itiger.com
UP FINTECH HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in U.S. dollars ("US$"))
| As of December 31, | As of March 31, | |||||||
| 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 US US | 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 | ||||||
| Goodwill | 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 | ) | ||||
| Treasury stock | (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 | ||||||
| UP FINTECH HOLDING LIMITED |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
| (All amounts in U.S. dollars ("US$"), except for number of shares (or ADSs) and per share (or ADS) data) |
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2021 | 2021 | 2022 | ||||||||||
| US$ | 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 UP Fintech Holding Limited | 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 | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 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 U.S. dollars ("US$"), except for number of ADSs and per ADS data)
| For the three months ended March 31, 2021 | For the three months ended December 31, 2021 | For the three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||
| non-GAAP | non-GAAP | non-GAAP | |||||||||||||||||||||||||||||||||||||
| GAAP | Adjustment | non-GAAP | GAAP | Adjustment | non-GAAP | GAAP | Adjustment | non-GAAP | |||||||||||||||||||||||||||||||
| US$ | 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 UP Fintech Holding Limited | 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
FAQ
What were the financial results of UP Fintech for Q1 2022?
How many funded accounts does UP Fintech have as of March 31, 2022?
What was UP Fintech's net income for Q1 2022?
What significant changes did UP Fintech implement in its operations?
How did trading volumes and commissions change for UP Fintech?
