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

UP Fintech Holding Ltd TIGR shares gained Tuesday morning after the company reported Q2 revenue growth of 23.5% Y/Y to $66.1 million, beating the consensus of $44.65 million. 

Segments: Commissions were $22.0 million, down 22.0% Y/Y, due to decreased trading volume. Financing service fees were $2.8 million, up 88.5% Y/Y, primarily due to increased interest rates.

Interest income was $36.4 million, up 152.2% Y/Y, on higher margin financing and securities lending activities. 

UP Fintech added 29,077 funded accounts in the quarter. The total number of funded accounts at the end of Q2 reached 840,900. 

The total account balance rose 16.2% Y/Y to $17.3 billion. The total number of customers with deposits increased by 15.0% Y/Y to 840,900.

Total margin financing and securities lending balance increased 27.0% Y/Y to $2.1 billion.

Non-GAAP net income per ADS was $0.10, beating the consensus of $0.04. 

As of June 30, 2023, cash and cash equivalents and term deposits were $325.0 million.

"We continued to invest in research and development to enhance operational efficiency and user experience. We have been gradually progressing self-clearing of Hong Kong equities during the first half of this year. This has helped us to maintain the clearing cost as a percentage of commission income at less than 10% in the second quarter," said Mr. Wu Tianhua, Chairman and CEO. 

In Q2, TIGR's wealth management business disclosed the Hong Kong dollar money market fund following the launching of the U.S. dollar money market fund in Q1. Also, the company launched TigerGPT in July, available for free to registered users in all markets except Mainland China.

Price Action: TIGR shares are up by 11.9% at $4.04 on the last check Tuesday.