UP Fintech Holding Ltd (TIGR) Q2 2024 Earnings Report

Revenue and profitability
- Revenue: $87.44 million in Q2 2024, up 32.0% YoY and 10.8% QoQ.
- Gross profit: $55.98 million; gross margin 0.6403.
- Operating income: $16.45 million; operating margin 18.81%.
- EBITDA: $20.52 million.
- Net income (GAAP): $2.59 million; net income margin 2.97%.
- Non-GAAP net income: $5.20 million.
- EPS (GAAP): $0.015; EPS diluted: $0.0164; weighted average shares outstanding (GAAP) 172.89 million; diluted 158.58 million.
- Pre-tax profit excluding loss provision: $18.40 million, +14% QoQ, +8% YoY.

Business mix and efficiency
- Trading commissions: $34.1 million, up 22.7% QoQ and 54.9% YoY.
- Take rate on cash equities: 6.7 basis points this quarter (vs 6.3 bps prior quarter).
- Composition of commission revenue: ~65% cash equities, ~30% options, remainder futures and others.
- Operating costs: total operating costs $69.0 million, +52% YoY; interest expense $13.56 million (+30% YoY); employee comp and benefits $28.6 million (+20% YoY).
- Clearing and other costs as a percentage of cash equity commissions: ~2.1% (cash equity clearing expense of $2.8 million).

Liquidity, assets and balance sheet
- Total assets: $4.793 billion.
- Current assets: $4.738 billion; total current liabilities: $4.122 billion (implied current ratio ~1.15x).
- Net receivables: $2.449 billion (significant receivables activity from client flows).
- Cash and equivalents: $392.5 million; short-term investments: $176.6 million; cash and short-term investments: $569.1 million.
- Long-term debt: $166.3 million; total debt: $170.8 million; net debt: -$221.8 million (net cash position).
- Stockholders’ equity: $501.2 million; total liabilities and stockholders’ equity consistent with assets.

Cash flow
- Net income (cash basis) provided by operating activities: $155.1 million.
- Free cash flow: $153.8 million.
- Net change in cash: $2.094 billion; cash at end of period reported as $2.094 billion (note: cash and cash equivalents appear lower in balance sheet; structural items may reflect timing or consolidation of cash equivalents and investments).

Valuation metrics and peer context (selected)
- Price toSales: TIGR 8.34x (vs FUTU 25.56x; XP 26.94x; QFIN 2.66x; BEKE 1.79x).
- Price toBook: 1.456x; P/E: 70.34x; Enterprise Value/Revenue: 24.75x.
- Dividend yield: 0%; implied growth expectations embedded in a higher P/S multiple.

Commentary highlights
- Client activity and asset growth: Q2 saw 48,900 newly funded accounts (+69% QoQ; +68% YoY) with Singapore and Southeast Asia as primary growth engines; total client assets rose to $38.2 billion, up 16% QoQ and 121% YoY, aided by a $3.6 billion market-to-market gain.
- Market backdrop and product expansion: Wu noted a favorable U.S. market environment driving higher trading volumes; August and July results point to ongoing momentum, with August being particularly active to date. HK and SG product enhancements (Hong Kong stock options, HK short selling, and Singapore Tiger Vault debit card) contributed to account growth and activity.
- Risk and one-off impairment: The quarter included a $13.2 million loss provision tied to a Hong Kong stock pledging transaction; excluding this, pre-tax profit would be stronger (+14% QoQ, +8% YoY).
- 2B business and wealth management: Investment banking activity remained robust (12 U.S./HK IPOs in Q2); ESOP clients up 21% YoY to 579; wealth management assets grew over 20% QoQ and ~50% YoY with elevated yields across money market products; platform upgrades positioned wealth mgmt as an increasingly central revenue contributor.