Hong
Kong-based online brokerage Futu Holdings Limited (Nasdaq: FUTU) announced its second-quarter results today (Tuesday), surpassing analyst expectations and prompting
an increase to its full-year outlook.
Futu Raises Guidance as Q2
Revenue Jumps 26%, Beating Estimates
The company
reported a 25.9% year-over-year (YoY) increase in total revenues to $400.7
million, driven by strong growth across its key business segments. Net income
rose 8.0% to $154.9 million, while non-GAAP adjusted net income grew 8.6% to $166.0
million.
This also
marks an increase
compared to the first quarter of the current year, when net profit stood at
$132.3 million, and revenues amounted to $331.3 million.
Futu’s
client base continued to expand rapidly, with paying clients increasing 28.8% YoY
to 2.04 million. The company added 155,000 new paying clients in Q2,
representing a 167.8% increase from the same period last year.
“Given
the strong year-to-date momentum, we would like to raise our guidance again to
550 thousand new paying clients in 2024,” said Leaf Hua Li, Futu’s
Chairman and CEO. This marks the second upward revision to the company’s
full-year guidance.
Despite the
strong top-line growth, Futu’s operating margin declined to 47.3% from 50.6% in
the year-ago quarter. That was primarily due to increased operating expenses as the
company invested in research and development and marketing to support its
growth initiatives.
Other Metrics Also Up
Total
client assets reached a record HK$579.3 billion, up 24.3% YoY and 11.9%
quarter-over-quarter, buoyed by robust net asset inflows and favorable market
conditions. The company’s margin financing and securities lending balance hit
an all-time high of HK$43.8 billion, reflecting increased client risk appetite.
Trading
volume surged 69.0% YoY to HK$1.62 trillion, with US stocks accounting for the
lion’s share at HK$1.24 trillion. The company benefited from heightened trading
activity in AI-themed stocks and meme stocks.
Futu’s
expansion into new markets showed promising results, with Hong Kong and
Singapore both recording double-digit sequential growth in new paying clients.
The company recently launched
cryptocurrency trading in these markets to diversify its offerings.
The firm
has also invested in Gravitation Fintech HK Limited, the parent company of Airstar
Bank, a licensed virtual bank in Hong Kong. After a HK$440 million investment,
the company holds an indirect 44.11% stake in Airstar Bank.
This article was written by Damian Chmiel at www.financemagnates.com.
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