UP Fintech Holding Ltd. Q4 FY2024 earnings call

• In Q4 2024, driven by expanded client base and active markets in US and Hong Kong, financial and operating results grew substantially. - Full year 2024 total revenue up 43.7% from 2023, GAAP and non-GAAP net income also saw significant increases. - Q4 added 59,200 newly funded accounts, full year exceeded annual target for newly funded accounts. - Total client assets had strong net inflows, with Hong Kong client assets growing notably. - Acquired Hong Kong SFC Type 1 and Type 7 licenses for crypto platform, making it a licensed virtual asset trading platform. - Officially upgraded AI investment assistant to TigerAI and integrated with leading AI models. - Investment banking underwrote 14 US and Hong Kong IPOs in Q4, ESOP business added 16 new clients in Q4.

In the fourth quarter, total revenue was US$124.1 million, a 22.8% quarter-over-quarter increase and 77.3% year-over-year increase. Commission income grew 35.8% QoQ and interest income 16.3% QoQ. For the full year, total revenue reached US$391.5 million, a 43.7% increase from 2023. GAAP net income for 2024 was US$60.7 million and non-GAAP net income was US$70.5 million, up 86.5% and 65% respectively from 2023. In Q4, GAAP and non-GAAP net profit were US$28.1 million and US$30.5 million, up 58% and 51.7% QoQ. Q4 added 59,200 newly funded accounts, a 17.2% QoQ increase. Full year newly funded accounts were 187,400, surpassing the annual target. Total client assets had net inflows of US$1.1 billion in Q4, with total client assets at US$41.7 billion, up 2.4% QoQ and 36.4% YoY. Hong Kong client assets increased 50% QoQ and 6x YoY.

• Target to acquire 150,000 new funded clients in 2025, prioritizing user quality. - Anticipate growth in Hong Kong and US markets in 2025, with consideration of increasing marketing input if market conditions are favorable.

• Statements contain forward-looking statements, and actual results could differ materially due to factors such as those in Form 6-K and annual report on 20-F filed.

Q: In 2025, targeting 150,000 new funded clients same as 2024 guidance, how to achieve and regional mix? Also, new funded clients breakdown by region in Q4?

A: In 2025, focus on user quality and ROI, target 150,000 new funded users. Regional mix: Q4 about 60% from Singapore and Southeast Asia, 25% from Greater China, ~10% from Australia and New Zealand, 5% from US.

Q: Compensation expenses risen more than anticipated, effective tax rate increased sequentially. Also, first quarter run rate for AUC, pace of new funded clients and trading volume, thoughts on US market volatilities?

A: Labor cost rise due to year-end bonus accrual. Effective tax rate increase due to higher profit from US market. Year-to-date total client assets increased, US stock market volatility driven trading volume, first three weeks of March trading volume higher than Q4 2024 and first two months of 2025.

Q: About crypto license contribution to crypto sector growth and Hong Kong crypto development in Q4; also, inconsistent trend in interest income despite micro finance and securities lending balance flat?

A: VATP license allows legal offering of crypto services, integrating with broker-dealer to create Web2-Web3 ecosystem. Hong Kong client assets grew, Tiger Broker Hong Kong breakeven in Q4. Interest income rise due to shift in mix to high-yield segments, better rate terms with banks, and active market increasing margin and securities lending activities.