UP Fintech Holding Limited Reports Unaudited Fourth Quarter 2020 Financial Results
UP Fintech Holding Limited (NASDAQ: TIGR) reported strong financial results for Q4 and the full year of 2020. Total revenues reached US$47.2 million, up 136.5% YoY, driven by commissions and interest income. Non-GAAP net income for Q4 was US$10.3 million, marking a significant improvement from last year. The total account balance soared 215.9% to US$16.0 billion. For the fiscal year, total revenues were US$138.5 million, an increase of 136.1% YoY, with net income rising to US$16.1 million from a loss of US$6.6 million in 2019.
- Total revenues increased 136.5% YoY to US$47.2 million in Q4 2020.
- Non-GAAP net income for Q4 2020 was US$10.3 million, compared to US$0.3 million in Q4 2019.
- Total account balance grew 215.9% YoY to US$16.0 billion.
- Total revenues for 2020 reached US$138.5 million, a 136.1% increase from 2019.
- Net income for 2020 was US$16.1 million, recovering from a loss of US$6.6 million in 2019.
- Financing service fees declined 17.0% YoY to US$6.6 million for the fiscal year, attributed to lower interest rates.
- Total operating costs rose 65.8% YoY to US$107.4 million, impacting profit margins.
BEIJING, March 26, 2021 (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 fourth quarter and the year ended December 31, 2020.
“Continuous investment in our platform and innovative range of services drove robust financial performance for our Company in the fourth quarter of 2020,” stated Mr. Wu Tianhua, CEO and Director of UP Fintech. “Total revenues were US
We added 44,000 funded accounts in the fourth quarter, 3.9 times the number of new funded accounts in the same quarter of last year; the total number of funded accounts more than doubled in 2020 to reach 258,700. Clients continued to entrust our Company with more of their assets; total account balance increased by US
Our corporate businesses continued to perform well. In the fourth quarter we participated in eight IPOs, of which we underwrote three. The growth in adoption of our ESOP system accelerated as we added 35 clients in the fourth quarter for a cumulative total of 124 clients. Our capabilities to serve corporate clients has already attracted a distinguished range of clients and we expect positive momentum going forward as more companies select our comprehensive service offering.
Financial Highlights for Fourth Quarter 2020
- Total revenues increased
136.5% year-over-year to US$47.2 million . - Total net revenues increased
132.4% year-over-year to US$42.9 million . - Net income increased to US
$9.4 million from negative US$0.2 million in the same quarter of last year. - Net income attributable to UP Fintech increased to US
$8.5 million from negative US$0.6 million in the same quarter of last year. - Non-GAAP net income attributable to UP Fintech increased to US
$10.3 million , compared to US$0.3 million in the same quarter of last year.
Financial Highlights for Fiscal Year 2020
- Total revenues were US
$138.5 million , a136.1% increase from 2019. - Total net revenues were US
$128.4 million , a135.3% increase from 2019. - Net income increased to US
$19.2 million from negative US$5.9 million in 2019. - Net income attributable to UP Fintech increased to US
$16.1 million from negative US$6.6 million in 2019. - Non-GAAP net income attributable to UP Fintech increased to US
$22.3 million from negative US$1.8 million in 2019.
Operating Highlights as of Year End 2020
- Total account balance increased
215.9% year-over-year to US$16.0 billion . - Total margin financing and securities lending balance increased
101.0% year-over-year to US$2.0 billion . - Total number of customers with deposits increased
128.4% year-over-year to 258.7K.
Selected Operating Data for Fourth Quarter 2020
| As of and for the three months ended | ||||||
| December 31, | September 30, | December 31, | ||||
| 2019 | 2020 | 2020 | ||||
| In 000's | ||||||
| Number of customer accounts | 649.0 | 975.6 | 1,104.1 | |||
| Number of customers with deposits | 113.2 | 214.7 | 258.7 | |||
| In USD millions | ||||||
| Trading volume | 21,799.6 | 62,810.7 | 65,449.4 | |||
| Total account balance | 5,051.6 | 10,915.7 | 15,956.9 | |||
Fourth Quarter 2020 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 INCOME/LOSS ATTRIBUTABLE TO UP FINTECH HOLDING LIMITED
Net income attributable to UP Fintech was US
Non-GAAP net income attributable to UP Fintech, which excludes share-based compensation and impairment loss from equity investments, was US
For the fourth quarter of 2020, the Company’s weighted average number of ADSs used in calculating diluted net income per ADS, was 144,502,750. As of December 31, 2020, the Company had a total of 2,121,539,851 Class A and B ordinary shares outstanding, or the equivalent of 141,435,990 ADSs.
Full Year 2020 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 INCOME/LOSS ATTRIBUTABLE TO UP FINTECH HOLDING LIMITED
Net income attributable to UP Fintech was US
Non-GAAP net income attributable to UP Fintech, which excludes share-based compensation and impairment loss from equity investments, was US
One of the significant subsidiaries of the Company, Tiger Brokers (NZ) Limited, has decided to change its functional currency after evaluation of the appropriateness of functional currency. The evaluation performed by the subsidiary took into account the nature and development of the business and was approved by its management and board of directors. The Company believes this change provides a more accurate view of both the subsidiary’s and the group’s business and results of operations. The financial impact of this change has been reflected in the financial statements for the year ended December 31, 2020.
CERTAIN BALANCE SHEET ITEMS
As of December 31, 2020, the Company's cash and cash equivalents and term deposits were US
Conference Call Information
UP Fintech’s management will hold an earnings conference call at 8:00 AM on March 26, 2021, U.S. Eastern Time (8:00 PM on March 26, 2021 Beijing/Hong Kong Time).
Participants may register for the conference call by navigating to: http://apac.directeventreg.com/registration/event/6867145
Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and registrant ID. The conference ID is: 6867145.
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 April 2, 2021.
Dial-in numbers for the replay are as follows:
| International: | +61-2-8199-0299 |
| Passcode: | 6867145 |
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 and impairment loss from equity investments. 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 and impairment loss from equity investments. 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 and impairment loss from equity investment has been and may continue to be incurred in our business and was 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 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. 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 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; foreign and international regulations and policies and actions by foreign governmental or regulatory authorities that may affect our internationalization strategy; and governmental policies relating to the Company’s industry and general economic conditions in China and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. 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
Clark S. Soucy
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 December 31, | ||||
| 2019 | 2020 | ||||
| US$ | US$ | ||||
| Assets: | |||||
| Cash and cash equivalents | 59,408,555 | 79,652,897 | |||
| Cash-segregated for regulatory purpose | 317,915,092 | 867,946,754 | |||
| Term deposits | 65,601,207 | 18,698,143 | |||
| Receivables from customers (net of allowance of nil and US | 106,113,896 | 373,703,918 | |||
| Receivables from brokers, dealers, and clearing organizations: | |||||
| Related parties | 185,047,211 | 764,318,932 | |||
| Others | 9,274,205 | 32,547,428 | |||
| Financial instruments held, at fair value | 14,881,240 | 562,536 | |||
| Prepaid expenses and other current assets | 8,020,192 | 11,214,430 | |||
| Amounts due from related parties | 3,484,434 | 3,576,949 | |||
| Total current assets | 769,746,032 | 2,152,221,987 | |||
| Non-current assets: | |||||
| Right-of-use assets | 5,732,559 | 7,280,763 | |||
| Property, equipment and intangible assets, net | 9,535,541 | 9,693,034 | |||
| Goodwill | 2,421,403 | 2,421,403 | |||
| Long-term investments | 6,017,219 | 6,480,951 | |||
| Other non-current assets | 3,045,732 | 4,299,246 | |||
| Deferred tax assets | 12,561,461 | 11,368,967 | |||
| Total non-current assets | 39,313,915 | 41,544,364 | |||
| Total assets | 809,059,947 | 2,193,766,351 | |||
| Current liabilities: | |||||
| Payables to customers | 512,481,679 | 1,696,164,267 | |||
| Payables to brokers, dealers and clearing organizations: | |||||
| Related party | 53,774,882 | 218,574,120 | |||
| Others | 1,355,112 | 5,135,941 | |||
| Accrued expenses and other current liabilities | 16,881,957 | 27,138,201 | |||
| Deferred income-current | 697,330 | 844,558 | |||
| Lease liabilities-current | 2,401,566 | 3,514,592 | |||
| Total current liabilities | 587,592,526 | 1,951,371,679 | |||
| Deferred income-non-current | 1,552,595 | 1,565,843 | |||
| Lease liabilities-non-current | 3,440,092 | 3,692,701 | |||
| Deferred tax liabilities | 1,449,000 | 1,449,000 | |||
| Total liabilities | 594,034,213 | 1,958,079,223 | |||
| Mezzanine equity: | |||||
| Redeemable non-controlling interest of sponsored fund | 3,084,122 | - | |||
| Total Mezzanine equity | 3,084,122 | - | |||
| Shareholders’ equity: | |||||
| Class A ordinary shares | 17,772 | 17,944 | |||
| Class B ordinary shares | 3,376 | 3,376 | |||
| Additional paid-in capital | 285,767,622 | 291,827,379 | |||
| Statutory reserve | 724,008 | 2,663,551 | |||
| Accumulated deficit | (73,704,745 | ) | (59,579,495 | ) | |
| Treasury stock | - | (2,172,819 | ) | ||
| Accumulated other comprehensive (loss)/income | (866,421 | ) | 2,927,192 | ||
| Total equity | 211,941,612 | 235,687,128 | |||
| Total liabilities, mezzanine equity and equity | 809,059,947 | 2,193,766,351 | |||
| UP FINTECH HOLDING LIMITED | ||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME | ||||||||||||||
| (All amounts in U.S. dollars ("US$"), except for number of shares (or ADSs) and per share (or ADS) data) | ||||||||||||||
| For the three months ended | For the year ended | |||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||
| 2019 | 2020 | 2020 | 2019 | 2020 | ||||||||||
| US$ | US$ | US$ | US$ | US$ | ||||||||||
| Revenues: | ||||||||||||||
| Commissions | 7,326,634 | 19,472,847 | 25,237,560 | 26,697,958 | 77,628,521 | |||||||||
| Interest related income | ||||||||||||||
| Financing service fees | 2,030,324 | 1,656,407 | 1,579,264 | 7,926,766 | 6,576,622 | |||||||||
| Interest income | 6,618,836 | 8,143,590 | 11,682,806 | 16,505,185 | 31,754,541 | |||||||||
| Other revenues | 3,994,125 | 8,815,702 | 8,736,450 | 7,532,991 | 22,537,006 | |||||||||
| Total revenues | 19,969,919 | 38,088,546 | 47,236,080 | 58,662,900 | 138,496,690 | |||||||||
| Interest expense | (1,513,329 | ) | (2,900,990 | ) | (4,341,848 | ) | (4,101,528 | ) | (10,102,290 | ) | ||||
| Total Net Revenues | 18,456,590 | 35,187,556 | 42,894,232 | 54,561,372 | 128,394,400 | |||||||||
| Operating costs and expenses: | ||||||||||||||
| Execution and clearing | (900,255 | ) | (3,882,200 | ) | (4,165,559 | ) | (2,519,238 | ) | (12,645,113 | ) | ||||
| Employee compensation and benefits | (10,555,672 | ) | (12,710,024 | ) | (15,549,026 | ) | (35,787,458 | ) | (50,039,073 | ) | ||||
| Occupancy, depreciation and amortization | (1,138,710 | ) | (1,188,225 | ) | (1,273,780 | ) | (3,572,260 | ) | (4,735,881 | ) | ||||
| Communication and market data | (1,933,425 | ) | (2,464,133 | ) | (3,916,530 | ) | (6,494,006 | ) | (10,320,505 | ) | ||||
| Marketing and branding | (1,732,222 | ) | (3,710,125 | ) | (6,538,162 | ) | (7,103,178 | ) | (15,871,777 | ) | ||||
| General and administrative | (2,847,910 | ) | (3,855,960 | ) | (4,838,561 | ) | (9,259,484 | ) | (13,748,818 | ) | ||||
| Total operating costs and expenses | (19,108,194 | ) | (27,810,667 | ) | (36,281,618 | ) | (64,735,624 | ) | (107,361,167 | ) | ||||
| Other income/(expense): | ||||||||||||||
| Others, net | (622,289 | ) | (128,036 | ) | 377,953 | 869,028 | 996,559 | |||||||
| (Loss)/income before income tax | (1,273,893 | ) | 7,248,853 | 6,990,567 | (9,305,224 | ) | 22,029,792 | |||||||
| Income tax benefits/(expenses) | 1,034,861 | (1,459,705 | ) | 2,434,661 | 3,355,366 | (2,850,547 | ) | |||||||
| Net (loss)/income | (239,032 | ) | 5,789,148 | 9,425,228 | (5,949,858 | ) | 19,179,245 | |||||||
| Less: | ||||||||||||||
| Net income attributable to redeemable non-controlling interests | 317,936 | 1,015,266 | 930,589 | 639,573 | 3,114,452 | |||||||||
| Net (loss)/income attributable to UP Fintech Holding Limited | (556,968 | ) | 4,773,882 | 8,494,639 | (6,589,431 | ) | 16,064,793 | |||||||
| Other comprehensive (loss)/ income, net of tax: | ||||||||||||||
| Unrealized gain on available-for-sale investments | - | - | 41,149 | - | 41,149 | |||||||||
| Changes in cumulative foreign currency translation adjustment | 2,592,364 | 987,879 | 2,106,619 | (321,433 | ) | 3,752,464 | ||||||||
| Total Comprehensive income/(loss) | 2,353,332 | 6,777,027 | 11,572,996 | (6,271,291 | ) | 22,972,858 | ||||||||
| Net (loss)/income per ordinary share: | ||||||||||||||
| Basic | (0.000 | ) | 0.002 | 0.004 | (0.004 | ) | 0.008 | |||||||
| Diluted | (0.000 | ) | 0.002 | 0.004 | (0.004 | ) | 0.007 | |||||||
| Net (loss)/income per ADS (1 ADS represents 15 Class A ordinary shares): | ||||||||||||||
| Basic | (0.004 | ) | 0.034 | 0.060 | (0.056 | ) | 0.114 | |||||||
| Diluted | (0.004 | ) | 0.033 | 0.059 | (0.056 | ) | 0.111 | |||||||
| Weighted average number of ordinary shares used in calculating net (loss)/income per ordinary share: | ||||||||||||||
| Basic | 2,114,715,062 | 2,114,362,687 | 2,120,016,218 | 1,751,784,176 | 2,117,904,025 | |||||||||
| Diluted | 2,114,715,062 | 2,161,052,034 | 2,167,541,257 | 1,751,784,176 | 2,162,232,325 | |||||||||
| Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures | |||||||||||||||||||
| (All amounts in U.S. dollars ("US$"), except for number of ADSs and per ADS data) | |||||||||||||||||||
| For the three months ended December 31, 2019 | For the three months ended September 30, 2020 | For the three months ended December 31, 2020 | |||||||||||||||||
| non-GAAP | non-GAAP | non-GAAP | |||||||||||||||||
| GAAP | Adjustments | non-GAAP | GAAP | Adjustments | non-GAAP | GAAP | Adjustments | non-GAAP | |||||||||||
| US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||
| 902,117 | (1) | 1,486,460 | (1) | 1,616,918 | (1) | ||||||||||||||
| - | (2) | - | (2) | 150,978 | (2) | ||||||||||||||
| Net (loss)/income attributable to UP Fintech Holding Limited | (556,968 | ) | 902,117 | 345,149 | 4,773,882 | 1,486,460 | 6,260,342 | 8,494,639 | 1,767,896 | 10,262,535 | |||||||||
| Net (loss)/income per ADS -diluted | (0.004 | ) | 0.002 | 0.033 | 0.043 | 0.059 | 0.071 | ||||||||||||
| Weighted average number of ADSs used in calculating diluted net (loss)/income per ADS | 140,981,004 | 143,201,410 | 144,070,136 | 144,070,136 | 144,502,750 | 144,502,750 | |||||||||||||
| (1) Share-based compensation. | |||||||||||||||||||
| (2) Impairment loss from equity investments | |||||||||||||||||||
| Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures | |||||||||||||
| (All amounts in U.S. dollars ("US$"), except for number of ADSs and per ADS data) | |||||||||||||
| For the year ended December 31, 2019 | For the year ended December 31, 2020 | ||||||||||||
| non-GAAP | non-GAAP | ||||||||||||
| GAAP | Adjustments | non-GAAP | GAAP | Adjustments | non-GAAP | ||||||||
| US$ | US$ | US$ | US$ | US$ | US$ | ||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||
| 4,062,600 | (1) | 6,054,612 | (1) | ||||||||||
| 755,524 | (2) | 150,978 | (2) | ||||||||||
| Net (loss)/income attributable to UP Fintech Holding Limited | (6,589,431 | ) | 4,818,124 | (1,771,307 | ) | 16,064,793 | 6,205,590 | 22,270,383 | |||||
| Net (loss)/income per ADS -diluted | (0.056 | ) | (0.015 | ) | 0.111 | 0.154 | |||||||
| Weighted average number of ADSs used in calculating diluted net (loss)/income per ADS | 116,785,612 | 116,785,612 | 144,148,822 | 144,148,822 | |||||||||
| (1) Share-based compensation | |||||||||||||
| (2) Impairment loss from equity investments | |||||||||||||
FAQ
What were UP Fintech's revenues for Q4 2020?
How did UP Fintech's net income change in 2020?
What is the total account balance for UP Fintech as of Q4 2020?
What were the financial highlights for UP Fintech in 2020?
What were the major factors affecting UP Fintech's profitability in 2020?
