UP Fintech Registers 9% Revenue Decline In Q3 As Macro Headwinds Weigh On Its Business
UP Fintech Holding Ltd (NASDAQ: TIGR) reported a third-quarter FY22 revenue decline of 8.8% year-on-year to $55.4 million. The revenue grew 3.6% Q/Q.
Segments: Commissions were $24.5 million, down 26.9% Y/Y due to a decrease in trading volume and market activities. Financing service fees were $2.1 million, down 14.6% Y/Y, primarily due to the decline in margin financing and securities lending activities.
Interest income was $24.8 million, up 41% Y/Y.
Drivers: The total account balance decreased 36.9% Y/Y to $13 billion. The total number of customers with deposits increased by 23.2%.
Total margin financing and securities lending balance decreased 48.1% Y/Y to $1.6 billion.
Non-GAAP net income per ADS was $0.04.
UP Fintech held $287.5 million in cash and equivalents.
UP Fintech added 22,700 funded accounts in the quarter. As of Q3, UP Fintech acquired 754,100 funded accounts, up 23.2% Y/Y.
Wu Tianhua, Chairman and CEO of UP Fintech, stated: "The macro environment showed no significant improvement over the third quarter. The continued Federal Reserve tightening of monetary policy and increases in short-term interest rates slowed down market activities, client asset growth, as well as IPO issuances, while our margin business benefited due to higher interest rate."
Price Action: TIGR shares closed higher by 2.38% at $4.51 on Tuesday.
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