Why Online Brokerage Firm UP Fintech's Stock Is Declining Today

UP Fintech Holding Limited TIGR shares are trading lower after the company after the company reported fourth-quarter FY23 results.

Total revenues increased 9.6% year-over-year to $70.0 million, while total net revenues decreased 4.7% to $54.0 million.

Segments: Commissions were $22.0 million, down 11.9% Y/Y, due to decreased trading volume. Financing service fees were $3.2 million, up 18.4% Y/Y, primarily due to increased interest rates.

Interest income was $40.0 million, up 31.3% Y/Y, on higher margin financing and securities lending activities. 

In the fourth quarter, the company added 39,034 new funded accounts, an increase of 42.8% Y/Y, bringing the yearly total to 123,110, exceeding the guidance of 100,000.

The total account balance rose 118.5% Y/Y to $30.6 billion, with the total number of customers with deposits increased by 15.8% Y/Y to 904,600.

Total margin financing and securities lending balance increased 17.9% Y/Y to $2.4 billion.

Non-GAAP net income per ADS was $0.007, missing the consensus of $0.07. 

As of December 31, 2023, cash and cash equivalents and term deposits were $327.7 million.

Wu Tianhua, Chairman and CEO, said, “In the fourth quarter, we introduced the Combo Option Strategy feature, allowing users to execute multi-leg options trades using net margin calculation.”

“Furthermore, in January of 2024, Hong Kong SFC uplifted our Type 1 License, now we can offer Virtual Asset dealing services to Professional Investors. This positions us as one of the first mainstream online brokerage firms in Hong Kong to receive approval for such a license upgrade.”

Price Action: TIGR shares are down by 10.1% at $4.02 on the last check Tuesday.