Priya PatelTLDR:
UP Fintech Holding Limited’s stock is declining after reporting fourth-quarter FY23 results. Total revenues increased 9.6% year-over-year to $70.0 million, but total net revenues decreased 4.7% to $54.0 million. The company added 39,034 new funded accounts in the fourth quarter, exceeding guidance. Non-GAAP net income per ADS was $0.007, missing consensus. TIGR shares are down 10.1% at $4.02.
UP Fintech Holding Limited (TIGR) shares are trading lower after the company reported its fourth-quarter FY23 results. While total revenues increased by 9.6% year-over-year to $70.0 million, total net revenues decreased by 4.7% to $54.0 million. This decline was primarily attributed to a decrease in commissions due to lower trading volume, offset by an increase in financing service fees and interest income.
In the fourth quarter, UP Fintech added 39,034 new funded accounts, marking a 42.8% increase year-over-year and surpassing the guidance of 100,000. The total account balance also rose significantly by 118.5% year-over-year to $30.6 billion, with a total of 904,600 customers holding deposits. Additionally, the company saw an uptick in total margin financing and securities lending balance, which increased by 17.9% year-over-year to $2.4 billion.
However, despite these positive metrics, the company’s Non-GAAP net income per ADS was reported at $0.007, falling short of the consensus estimate of $0.07. As of December 31, 2023, UP Fintech had cash and cash equivalents along with term deposits totaling $327.7 million.
UP Fintech’s Chairman and CEO, Wu Tianhua, highlighted the introduction of the Combo Option Strategy feature in the fourth quarter, allowing users to execute multi-leg options trades using net margin calculation. Furthermore, the company received an uplift in its Type 1 License from the Hong Kong SFC in January 2024, enabling it to offer Virtual Asset dealing services to Professional Investors, positioning UP Fintech as one of the first mainstream online brokerage firms in Hong Kong to receive such approval.
Following the news, UP Fintech Holding Limited’s stock (TIGR) experienced a decline of 10.1% and was trading at $4.02 at the time of the last check on Tuesday.
