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, 2021.
“We are pleased to announce that our Company
delivered strong growth in revenue, profits, and client assets in
the first quarter of 2021”, stated Mr. Wu Tianhua, CEO and Director
of UP Fintech. Total revenues were US$81.3 million, a 255.5%
increase from the first quarter of 2020, and were bolstered by
solid increases in commissions, interest income, and revenues
derived from our corporate business. The profitability of our
Company continued to improve as net income attributable to UP
Fintech in the first quarter was US$21.1 million, a significant
improvement from net loss of US$0.2 million in the first quarter of
2020, and Non-GAAP net income attributable to UP Fintech in the
first quarter was US$23.5 million, 22.1 times that of the first
quarter of 2020.”
Due to our expanding geographic footprint and
rich range of services, the total number of accounts as well as the
total account balance achieved notable milestones. We added over
117,000 funded accounts, and the aggregate value of assets clients
allocated to our platform surpassed US$21.4 billion. Total trading
volume also surged past US$123.8 billion dollars, nearly triple the
same period in 2020.
The growth in our corporate businesses
accelerated in the first quarter. Market adoption of our ESOP
service has been phenomenal; we added 41 clients in the first
quarter and now serve 165 in total. On the investment banking side,
in the first quarter we participated in 14 IPOs, of which we
underwrote eight. Most notably, our U.S. subsidiary served as the
lead bank in an IPO for the first time. In just over two short
years, we have become a leading underwriter for assisting new
economy corporate clients raise financing on international capital
markets and we look forward to serving them with the wide range of
capabilities integrated into our fintech ecosystem.
Finally, our innovative platform is attracting
new investors across a diverse range of countries. We continue to
gain momentum in the Singapore market and added new features to our
suite of trading products available for local clients, namely U.S.
over the counter (OTC) equities, Daily Leverage Certificates, as
well as our digital wealth management product, The Fund Mall, which
empowers investors to allocate their capital across a rich range of
global mutual funds that span numerous countries and asset classes.
Going forward we intend to continue enhancing the functionality of
our platform for our investors, augmenting our comprehensive
capability to serve corporate clients, and executing on our global
expansion strategy.
Financial Highlights for First Quarter 2021
- Total revenues
increased 255.5% year-over-year to US$81.3 million.
- Total net revenues
increased 245.7% year-over-year to US$75.7 million.
- Net income
increased to US$21.1 million from net loss of US$0.5 million in the
same quarter of last year.
- Net income attributable to
UP Fintech increased to US$21.1 million from net loss of
US$0.2 million in the same quarter of last year.
- Non-GAAP net income
attributable to UP Fintech increased to US$23.5 million,
compared to US$1.1 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
2021
- Total account
balance increased 289.8% year-over-year to US$21.4
billion.
- Total margin financing and
securities lending balance increased 177.3% year-over-year
to US$2.3 billion.
- Total number of customers
with deposits increased 180.4% year-over-year to
376.0K.
Selected Operating Data for First Quarter
2021
|
As of and for the three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2020 |
|
2020 |
|
2021 |
In 000's |
|
|
|
|
|
Number of customer accounts |
743.3 |
|
1,104.1 |
|
1,400.2 |
Number of customers with deposits |
134.1 |
|
258.7 |
|
376.0 |
|
|
|
|
|
|
In USD millions |
|
|
|
|
|
Trading volume |
44,109.9 |
|
65,449.4 |
|
123,831.5 |
Total account balance |
5,493.9 |
|
15,956.9 |
|
21,414.6 |
First Quarter 2021 Financial Results
REVENUES
Total revenues were US$81.3 million, up 255.5%
from US$22.9 million in the same quarter of last year.
Commissions were US$52.9 million, up 277.2% from
US$14.0 million in the same quarter of last year, driven by an
increase in our user base and favorable market backdrop.
Financing service fees were US$2.2 million, up
36.3% from US$1.6 million in the same quarter of last year,
primarily due to an increase in margin trading balance.
Interest income was US$15.6 million, up 228.6%
from US$4.8 million in the same quarter of last year. This was also
due to an increase in our user base and margin activities.
Other revenues were US$10.5 million, up 330.5%
from US$2.4 million in the same quarter of last year, primarily due
to the growth of our underwriting business and currency exchange
service.
Interest expense was US$5.5 million, an increase
of 480.2% from US$1.0 million in the same quarter of last year,
primarily due to an increase in our user base and margin
activities.
OPERATING COSTS AND EXPENSES
Total operating costs and expenses were US$46.7
million, an increase of 131.1% from US$20.2 million in the same
quarter of last year.
Execution and clearing expenses were US$8.2
million, an increase of 365.9% from US$1.8 million in the same
quarter of last year, due to an increase in user base and trading
volume.
Employee compensation and benefits expenses were
US$16.5 million, an increase of 57.5% from US$10.5 million in the
same quarter of last year, primarily due to a headcount increase to
accompany the rapid growth of the business.
Occupancy, depreciation and amortization
expenses were US$1.2 million, a slight increase of 4.6% from US$1.2
million in the same quarter last year.
Communication and market data expenses were
US$4.0 million, an increase of 116.1% from US$1.8 million in the
same quarter last year, due to rapid user growth and expanded
market data usage.
Marketing and branding expenses were US$12.8
million, an increase of 371.3% from US$2.7 million in the same
quarter last year. This increase was derived from our continuous
efforts to expand globally in accordance with our
internationalization strategy.
General and administrative expenses were US$4.1
million, an increase of 77.6% from US$2.3 million in the same
quarter last year, primarily due to increased professional services
expenses resulting from business expansion.
NET INCOME/LOSS ATTRIBUTABLE TO UP FINTECH HOLDING
LIMITED
Net income attributable to UP Fintech was
US$21.1 million, as compared to a net loss of US$0.2 million in the
same quarter of last year. Net income per ADS – diluted was
US$0.143, as compared to a net loss per ADS – diluted of US$0.001
in the same quarter of last year.
Non-GAAP net income attributable to UP Fintech,
which excludes share-based compensation and impairment loss from
equity investments, was US$23.5 million, as compared to a US$1.1
million non-GAAP net income attributable to UP Fintech in the same
quarter of last year. Non-GAAP net income per ADS – diluted was
US$0.159, as compared to a non-GAAP net income per ADS – diluted of
US$0.007 in the same quarter of last year.
For the first quarter of 2021, the Company’s
weighted average number of ADSs used in calculating diluted net
income per ADS, was 147,364,386. As of March 31, 2021, the Company
had a total of 2,145,193,351 Class A and B ordinary shares
outstanding, or the equivalent of 143,012,890 ADSs.
CERTAIN
BALANCE SHEET ITEMS
As of March 31, 2021, the Company's cash and
cash equivalents and term deposits were US$193.4 million, compared
to US$98.4 million as of December 31, 2020.
Conference Call Information
UP Fintech’s management will hold an earnings
conference call at 8:00 AM on May 25, 2021, U.S. Eastern Time (8:00
PM on May 25, 2021 Beijing/Hong Kong Time).
Participants may register for the conference call by navigating
to: http://apac.directeventreg.com/registration/event/7164159
Once preregistration has been complete, participants will
receive dial-in numbers, direct event passcode, and registrant id.
The conference ID: is 7164159
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 2, 2021.Dial-in
numbers for the replay are as follows:International:
+61-2-8199-0299Passcode: 7164159A 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 equity 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 equity
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 equity investment and fair value change from
convertible bonds have 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, 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 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
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,
including the Company’s annual report on Form 20-F filed with the
SEC on April 28, 2021. 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 ContactClark S. SoucyUP
Fintech Holding LimitedEmail: 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, |
|
2020 |
2021 |
|
US$ |
|
US$ |
Assets: |
|
|
|
Cash and cash equivalents |
79,652,897 |
|
|
174,696,373 |
|
Cash-segregated for regulatory purpose |
867,946,754 |
|
|
2,312,040,145 |
|
Term deposits |
18,698,143 |
|
|
18,680,327 |
|
Receivables from customers (net of allowance of US$91,788 and
US$99,914 as of December 31, 2020 and March 31, 2021) |
372,215,645 |
|
|
527,378,775 |
|
Receivables from brokers, dealers, and clearing organizations: |
|
|
|
Related party |
764,318,932 |
|
|
1,121,259,847 |
|
Others |
32,547,428 |
|
|
66,554,710 |
|
Financial instruments held, at fair value |
562,536 |
|
|
1,297,967 |
|
Prepaid expenses and other current assets |
11,214,430 |
|
|
11,110,946 |
|
Amounts due from related parties |
5,065,222 |
|
|
6,094,568 |
|
Total current
assets |
2,152,221,987 |
|
|
4,239,113,658 |
|
Non-current
assets: |
|
|
|
Right-of-use assets |
7,280,763 |
|
|
6,778,316 |
|
Property, equipment and intangible assets, net |
9,693,034 |
|
|
10,202,296 |
|
Goodwill |
2,421,403 |
|
|
2,421,403 |
|
Long-term investments |
6,480,951 |
|
|
5,833,982 |
|
Other non-current assets |
4,299,246 |
|
|
4,003,638 |
|
Deferred tax assets |
9,919,967 |
|
|
9,393,173 |
|
Total non-current
assets |
40,095,364 |
|
|
38,632,808 |
|
Total
assets |
2,192,317,351 |
|
|
4,277,746,466 |
|
Current
liabilities: |
|
|
|
Payables to customers |
1,696,164,267 |
|
|
3,674,857,572 |
|
Payables to brokers, dealers and clearing organizations: |
|
|
|
Related party |
218,574,120 |
|
|
148,690,781 |
|
Others |
5,135,941 |
|
|
105,179,152 |
|
Accrued expenses and other current liabilities |
27,138,201 |
|
|
37,655,905 |
|
Deferred income-current |
844,558 |
|
|
816,892 |
|
Lease liabilities-current |
3,514,592 |
|
|
3,551,882 |
|
Total current
liabilities |
1,951,371,679 |
|
|
3,970,752,184 |
|
Convertible bonds |
|
|
|
Related party |
- |
|
|
29,965,160 |
|
Others |
- |
|
|
13,983,742 |
|
Deferred income-non-current |
1,565,843 |
|
|
1,364,420 |
|
Lease liabilities- non-current |
3,692,701 |
|
|
3,093,984 |
|
Total
liabilities |
1,956,630,223 |
|
|
4,019,159,490 |
|
Shareholders’
equity: |
|
|
|
Class A ordinary shares |
17,944 |
|
|
18,301 |
|
Class B ordinary shares |
3,376 |
|
|
3,151 |
|
Additional paid-in capital |
291,827,379 |
|
|
293,906,617 |
|
Statutory reserve |
2,663,551 |
|
|
2,663,551 |
|
Accumulated deficit |
(59,579,495 |
) |
|
(38,523,167 |
) |
Treasury Stock |
(2,172,819 |
) |
|
(2,172,819 |
) |
Accumulated other comprehensive income |
2,927,192 |
|
|
2,691,342 |
|
Total
shareholders’ equity |
235,687,128 |
|
|
258,586,976 |
|
Total liabilities
and shareholders’
equity |
2,192,317,351 |
|
|
4,277,746,466 |
|
|
|
|
|
|
|
__________________________________________________________________________________________________________________________
UP FINTECH HOLDING LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE 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 |
|
March 31, |
|
December 31, |
|
March 31, |
|
2020 |
|
|
2020 |
|
|
2021 |
|
|
US$ |
|
US$ |
|
US$ |
Revenues(a): |
|
|
|
|
|
Commissions |
14,021,149 |
|
|
25,237,560 |
|
|
52,894,103 |
|
Interest related income |
|
|
|
|
|
Financing service fees |
1,642,942 |
|
|
1,579,264 |
|
|
2,239,870 |
|
Interest income |
4,757,724 |
|
|
11,682,806 |
|
|
15,631,913 |
|
Other revenues |
2,441,646 |
|
|
8,736,450 |
|
|
10,511,488 |
|
Total
revenues |
22,863,461 |
|
|
47,236,080 |
|
|
81,277,374 |
|
Interest expense(a) |
(953,615 |
) |
|
(4,341,848 |
) |
|
(5,532,690 |
) |
Total Net
Revenues |
21,909,846 |
|
|
42,894,232 |
|
|
75,744,684 |
|
Operating costs and
expenses: |
|
|
|
|
|
Execution and clearing(a) |
(1,763,111 |
) |
|
(4,165,559 |
) |
|
(8,213,722 |
) |
Employee compensation and benefits |
(10,452,029 |
) |
|
(15,549,026 |
) |
|
(16,462,536 |
) |
Occupancy, depreciation and amortization |
(1,161,367 |
) |
|
(1,273,780 |
) |
|
(1,215,248 |
) |
Communication and market data |
(1,829,783 |
) |
|
(3,916,530 |
) |
|
(3,953,961 |
) |
Marketing and branding |
(2,716,486 |
) |
|
(6,538,162 |
) |
|
(12,803,374 |
) |
General and administrative |
(2,281,658 |
) |
|
(4,838,561 |
) |
|
(4,051,434 |
) |
Total operating costs
and expenses |
(20,204,434 |
) |
|
(36,281,618 |
) |
|
(46,700,275 |
) |
Other
(expense)/income: |
|
|
|
|
|
Others, net |
(1,257,690 |
) |
|
377,953 |
|
|
(964,699 |
) |
Income before income
tax |
447,722 |
|
|
6,990,567 |
|
|
28,079,710 |
|
Income tax (expenses)/benefits |
(906,515 |
) |
|
2,434,661 |
|
|
(7,023,382 |
) |
Net
(loss)/income |
(458,793 |
) |
|
9,425,228 |
|
|
21,056,328 |
|
Less: |
|
|
|
|
|
Net (loss)/income attributable to redeemable non-controlling
interests |
(305,715 |
) |
|
930,589 |
|
|
- |
|
Net (loss)/income
attributable to UP Fintech Holding Limited |
(153,078 |
) |
|
8,494,639 |
|
|
21,056,328 |
|
|
|
|
|
|
|
Other comprehensive
income/(loss), net of tax: |
|
|
|
|
|
Unrealized gain on available-for-sale investments |
- |
|
|
41,149 |
|
|
- |
|
Changes in cumulative foreign currency translation adjustment |
723,991 |
|
|
2,106,619 |
|
|
(235,850 |
) |
Total Comprehensive
income |
265,198 |
|
|
11,572,996 |
|
|
20,820,478 |
|
|
|
|
|
|
|
Net (loss)/income per
ordinary share: |
|
|
|
|
|
Basic |
(0.000 |
) |
|
0.004 |
|
|
0.010 |
|
Diluted |
(0.000 |
) |
|
0.004 |
|
|
0.010 |
|
Net (loss)/income per
ADS (1 ADS represents 15 Class A ordinary shares): |
|
|
|
|
|
Basic |
(0.001 |
) |
|
0.060 |
|
|
0.148 |
|
Diluted |
(0.001 |
) |
|
0.059 |
|
|
0.143 |
|
Weighted average
number of ordinary shares used in calculating net (loss)/income per
ordinary share: |
|
|
|
|
|
Basic |
2,118,759,654 |
|
|
2,120,016,218 |
|
|
2,128,130,208 |
|
Diluted |
2,143,712,304 |
|
|
2,167,541,257 |
|
|
2,210,465,791 |
|
(a) Includes the following revenues, costs and
expenses resulting from transactions with related parties for the
three months ended March 31, 2021:
|
|
|
|
|
For the three months ended |
|
|
|
|
|
March 31, |
|
|
|
|
|
2021 |
|
|
|
|
|
US$ |
Revenues: |
|
|
|
|
|
Commissions |
|
|
|
|
13,334,528 |
|
Interest related income |
|
|
|
|
|
Financing service fees |
|
|
|
|
2,239,870 |
|
Interest income |
|
|
|
|
9,281,680 |
|
Other revenues |
|
|
|
|
5,957,010 |
|
Interest expense |
|
|
|
|
(4,259,765 |
) |
|
|
|
|
|
|
Execution and clearing |
|
|
|
|
(5,908,113 |
) |
Reconciliations of Non-GAAP Results of Operations Measures
to the Nearest Comparable GAAP Measures |
(All amounts in U.S. dollars ("US$"), except for number of
ADSs and per ADS data) |
|
|
For the three months ended March 31, 2020 |
|
For the three months ended December 31, 2020 |
|
For the three months ended March 31, 2021 |
|
|
|
non-GAAP |
|
|
|
|
|
non-GAAP |
|
|
|
|
|
non-GAAP |
|
|
|
GAAP |
|
Adjustments |
|
non-GAAP |
|
GAAP |
|
Adjustments |
|
non-GAAP |
|
GAAP |
|
Adjustments |
|
non-GAAP |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,217,014 |
(1) |
|
|
|
|
1,616,918 |
(1) |
|
|
|
|
1,799,208 |
(1) |
|
|
|
|
- |
(2) |
|
|
|
|
150,978 |
(2) |
|
|
|
|
600,000 |
(2) |
|
|
|
|
- |
(3) |
|
|
|
|
- |
(3) |
|
|
|
|
29,870 |
(3) |
|
Net (loss)/income attributable to UP Fintech Holding
Limited |
(153,078 |
) |
|
1,217,014 |
|
1,063,936 |
|
8,494,639 |
|
1,767,896 |
|
10,262,535 |
|
21,056,328 |
|
2,429,078 |
|
23,485,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income per ADS
-diluted |
(0.001 |
) |
|
|
|
0.007 |
|
0.059 |
|
|
|
0.071 |
|
0.143 |
|
|
|
0.159 |
Weighted average number of
ADSs used in calculating diluted net (loss)/income
per ADS |
141,250,644 |
|
|
|
|
142,914,154 |
|
144,502,750 |
|
|
|
144,502,750 |
|
147,364,386 |
|
|
|
147,364,386 |
(1) Share-based compensation. |
(2) Impairment loss from equity investments |
(3) Fair value change from convertible bonds |
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