Connect with us
Prague Gaming & TECH Summit 2025 (25-26 March)

Fintech PR

Broadridge Reports Second Quarter And Six Months Fiscal Year 2020 Results

Published

on

 

Broadridge Financial Solutions, Inc. (NYSE: BR) today reported financial results for the second quarter and six months ended December 31, 2019 of its fiscal year 2020. Results compared with the same period last year were as follows:

Summary Financial Results

Second Quarter

Six Months

Dollars in millions, except per share data

2020

2019

Change

2020

Advertisement

2019

Change

Total revenues

$969

$953

2%

$1,917

$1,926

Recurring fee revenues

648

Advertisement

604

7%

1,272

1,179

8%

Operating income

27

78

(66)%

100

Advertisement

178

(44)%

Operating income margin

2.8%

8.2%

5.2%

9.3%

Adjusted Operating income – Non-GAAP

94

101

Advertisement

(7)%

198

224

(12)%

Adjusted Operating income margin – Non- GAAP

9.7%

10.6%

10.3%

11.6%

Diluted EPS

Advertisement

$0.09

$0.42

(79)%

$0.56

$1.06

(47)%

Adjusted EPS – Non-GAAP

$0.53

$0.56

(5)%

Advertisement

$1.22

$1.35

(10)%

Closed sales

$45

$106

(57)%

$83

$124

(33)%

Advertisement

“Broadridge continued to execute well in a mixed quarter.  Recurring revenues rose 7% to $648 million, driven by strong revenue from sales as well as contributions from recent acquisitions,” said Tim Gokey, Broadridge’s Chief Executive Officer. “Event-driven activity declined 36%, leading to a 5% decline in Adjusted EPS in a seasonally small quarter. Importantly, demand remains robust with strong Closed sales and performance by our recent acquisitions.

“As we enter the more significant second half, we expect a pick-up in organic growth and full-year Recurring revenue growth of 8-10%. We also expect to deliver within our 8-12% Adjusted EPS guidance, albeit at the low end. We continue to be well on-track to achieve the three-year objectives laid out at our 2017 Investor Day, including the high end of our Adjusted EPS objectives,” Mr. Gokey added. “Broadridge remains very well-positioned for growth, and we continue to invest in new products and technology to create value.”

Fiscal Year 2020 Financial Guidance – Updated

Change / Update1

Recurring fee revenue growth

8-10%

No change

Total revenue growth

3-6%

No change

Advertisement

Operating income margin – GAAP

~14%

Reduced from ~15%2

Adjusted Operating income margin – Non-GAAP

~18%

No change

Diluted earnings per share growth

(4)-0%

Reduced from 5-9%2

Adjusted earnings per share growth – Non-GAAP

Advertisement

8-12%

Expected to be at low end of range

Closed sales

$190-230M

No change

(1) From full-year guidance provided in earnings release Q1 FY20 on 11/6/2019

(2) Fiscal Year 2020 GAAP Operating income margin and Diluted EPS growth guidance has been updated to reflect the impact of acquisitions made in the second quarter and the impact of the IBM Private Cloud Charges

Financial Results for the Second Quarter Fiscal Year 2020 compared to the Second Quarter Fiscal Year 2019

  • Total revenues increased 2% to $969 million from $953 million in the prior year period.
    • Recurring fee revenues increased 7% to $648 million from $604 million. The increase in recurring fee revenues includes 6pts of growth from acquisitions. Organic growth was 1.5%.
    • Event-driven fee revenues decreased $17 million, or 36%, to $31 million, mainly from lower mutual fund proxy activity.
    • Distribution revenues decreased $6 million, or 2%, to $317 million, primarily from the decrease in event-driven fee revenues.
  • Operating income was $27 million, a decrease of $51 million, or 66%. Operating income margin decreased to 2.8%, compared to 8.2% for the prior year period.
    • Adjusted Operating income was $94 million, a decrease of $7 million, or 7%. Adjusted Operating income margin decreased to 9.7%, compared to 10.6% for the prior year period.
    • The decrease in Operating income was primarily due to higher acquisition amortization expense, charges associated with the Company’s new private cloud services agreement with IBM (the “IBM Private Cloud Agreement”), and the decrease in event-driven fee revenues.  The decrease in Adjusted Operating income was primarily due to the decrease in event-driven fee revenues.
  • Interest expense, net was $14 million, an increase of $3 million, or 30%, primarily due to an increase in interest expense from higher borrowings related to acquisitions.
  • The effective tax rate was 3.8% compared to 22.4% in the Second Quarter 2019. The effective tax rate was impacted by discrete tax items relative to pre-tax income, including excess tax benefits of $2.2 million, which increased from $0.8 million in the Second Quarter 2019.
  • Net earnings decreased 80% to $10 million and Adjusted Net earnings decreased 7% to $62 million.
    • Diluted earnings per share decreased 79% to $0.09, compared to $0.42 in the Second Quarter 2019 and Adjusted earnings per share decreased 5% to $0.53, compared to $0.56 in the Second Quarter 2019.
    • The decrease in Diluted earnings per share was primarily due to higher acquisition amortization expense, charges associated with the IBM Private Cloud Agreement, and a decrease in event-driven fee revenues. The decrease in Adjusted earnings per share was primarily due to a decrease in event-driven fee revenues.

Segment and Other Results for the Second Quarter 2020 compared to Second Quarter 2019

The results for the Company’s Advisor Solutions services that were previously reported in our Investor Communication Solutions segment are now reported within the Global Technology and Operations segment. As a result, our prior period segment results have been revised to reflect this change.

Investor Communication Solutions (“ICS”)

Advertisement
  • ICS total revenues were $716 million, a decrease of $12 million, or 2%.
    • Recurring fee revenues increased $11 million, or 3%, to $368 million. The increase was attributable to revenues from net new business (3pts) and acquisition growth (3pts), partially offset by internal growth (-3pts).
    • Event-driven fee revenues decreased $17 million, or 36%, to $31 million, mainly from lower mutual fund proxy activity compared to the Second Quarter 2019.
    • Distribution revenues decreased $6 million, or 2%, to $317 million, primarily from the decrease in event-driven activity.
  • ICS earnings before income taxes were $22 million, a decrease of $15 million, or 40%, primarily due to the decrease in event-driven fee revenues more than offsetting the contribution from higher recurring fee revenues. Pre-tax margins decreased to 3.1% from 5.1%.

Global Technology and Operations (“GTO”)

  • GTO recurring fee revenues were $281 million, an increase of $34 million, or 14%. The increase was attributable to the combination of revenues from acquisitions (10pts) and organic growth (4pts).
  • GTO earnings before income taxes were $49 million, an increase of $2 million, or 3%, compared to $48 million in the prior year period. The increased earnings were primarily due to higher organic revenues, partially offset by the impact of expenditures to implement and support new business. Pre-tax margins decreased to 17.4% from 19.2%.

Other

  • Other Loss before income tax increased 144% to $68 million from $28 million in the Second Quarter 2019. The increased loss was primarily due to charges associated with the IBM Private Cloud Agreement, and higher interest expense compared to the prior year period.

Financial Results for the Six Months Fiscal Year 2020 compared to the Six Months Fiscal Year 2019

  • Total revenues fell slightly to $1,917 million from $1,926 million in the prior year period.
    • Recurring fee revenues increased 8% to $1,272 million from $1,179 million. The increase in recurring fee revenues includes 6pts of growth from acquisitions.
    • Event-driven fee revenues decreased $54 million, or 43%, to $71 million, mainly from lower mutual fund proxy activity.
    • Distribution revenues decreased $33 million, or 5%, to $630 million, primarily from the decrease in event-driven fee revenues.
  • Operating income was $100 million, a decrease of $78 million, or 44%. Operating income margin decreased to 5.2%, compared to 9.3% in the prior year period.
    • Adjusted Operating income was $198 million, a decrease of $26 million, or 12%. Adjusted Operating income margin decreased to 10.3%, compared to 11.6% for the prior year period.
    • The decrease in Operating income was primarily due to higher acquisition amortization expense, charges associated with the IBM Private Cloud Agreement, and the decrease in event-driven fee revenues.  The decrease in Adjusted Operating income was primarily due to the decrease in event-driven fee revenues.
  • Interest expense, net was $27 million, an increase of $7 million, or 32%, primarily due to an increase in interest expense from higher borrowings related to acquisitions.
  • The effective tax rate was 11.2% compared to 17.6% in the prior year period. The effective tax rate was impacted by discrete tax items relative to pre-tax income, including excess tax benefits of $8 million, unchanged from $8 million in the prior year period.
  • Net earnings decreased 48% to $66 million and Adjusted Net earnings decreased 12% to $142 million.
    • Diluted earnings per share decreased 47% to $0.56, compared to $1.06 in the prior year period and Adjusted earnings per share decreased 10% to $1.22, compared to $1.35 in the prior year period.
    • The decrease in Diluted earnings per share was primarily due to higher acquisition amortization expense, charges associated with the IBM Private Cloud Agreement, and a decrease in event-driven fee revenues.  The decrease in Adjusted earnings per share was primarily due to a decrease in event-driven fee revenues.

Segment and Other Results for the Six Months Fiscal Year 2020 compared to the Six Months Fiscal Year 2019
The results for the Company’s Advisor Solutions services that were previously reported in our Investor Communication Solutions segment are now reported within the Global Technology and Operations segment. As a result, our prior period segment results have been revised to reflect this change.

Investor Communication Solutions

  • ICS total revenues were $1,418 million, a decrease of $65 million, or 4%.
    • Recurring fee revenues increased $23 million, or 3%, to $717 million. The increase was attributable to the combination of revenues from acquisitions (2pts) and organic growth (1pt).
    • Event-driven fee revenues decreased $54 million, or 43%, to $71 million, mainly from lower mutual fund proxy activity compared to the prior year period.
    • Distribution revenues decreased $33 million, or 5%, to $630 million, primarily from the decrease in event-driven activity.
  • ICS earnings before income taxes were $45 million, a decrease of $51 million, or 53%, primarily due to decreased event-driven fee revenues more than offsetting the contribution from higher recurring fee revenues. Pre-tax margins decreased to 3.2% from 6.4%.

Global Technology and Operations

  • GTO recurring fee revenues were $555 million, an increase of $69 million, or 14%. Revenue from acquisitions contributed (11pts) to the increase.
  • GTO earnings before income taxes were $105 million, an increase of $11 million, or 12%, compared to $94 million in the prior year period. The increased earnings were primarily due to higher revenues from acquisitions, including software license sales, and higher organic revenues, partially offset by the impact of expenditures to implement and support new business. Pre-tax margins decreased to 19.0% from 19.4%.

Other

  • Other Loss before income tax increased 75% to $89 million from $51 million in the six months ended December 31, 2019. The increased loss was primarily due to charges associated with the IBM Private Cloud Agreement, and higher interest expense compared to the prior year period.

Launch of Broadridge Private Cloud
On December 31, 2019, Broadridge and IBM entered into the IBM Private Cloud Agreement under which IBM will operate, manage and support the Broadridge Private Cloud, the Company’s private cloud global distributed platforms and products.  This agreement has an initial term of approximately 10 years and three months, expiring on March 31, 2030. As a result of this agreement, Broadridge expects to transfer the ownership of certain Company-owned hardware located at Company facilities worldwide along with the Company’s maintenance agreements associated with such hardware to IBM.  Accordingly, the Company has recorded charges of $33.4 million representing a charge on the hardware assets to be transferred to IBM and other charges related to the IBM Private Cloud Agreement (the “IBM Private Cloud Charges”).

Second Quarter 2020 Acquisitions
Broadridge completed three primary acquisitions in the Second Quarter 2020, with an aggregate purchase price of approximately $227 million.

  • Shadow Financial Systems, Inc. (“Shadow Financial”): In October 2019, the Company acquired Shadow Financial, a provider of multi-asset class post-trade solutions for the capital markets industry. The acquisition builds upon Broadridge’s post-trade processing capabilities by adding a market-ready solution for exchanges, inter-dealer brokers and proprietary trading firms. In addition, the acquisition adds capabilities across exchange traded derivatives and cryptocurrency. The purchase price was approximately $39 million.
  • Fi360, Inc.: In November 2019, the Company acquired Fi360, Inc., a provider of fiduciary and Regulation Best Interest solutions for the wealth and retirement industry, including the accreditation and continuing education for the Accredited Investment Fiduciary® (AIF®) Designation, the leading designation focused on fiduciary responsibility. The acquisition is expected to enhance Broadridge’s retirement solutions by providing wealth and retirement advisors with fiduciary tools that will complement its Matrix trust and trading platform and further strengthen Broadridge’s data and analytics tools and solutions suite. The purchase price was approximately $120 million.
  • Clear Structure Financial Technology, LLC (“ClearStructure”): In November 2019, the Company acquired ClearStructure, a global provider of portfolio management solutions for the private debt markets. ClearStructure’s component services are expected to enhance Broadridge’s existing multi-asset class, front-to-back office asset management technology suite, providing Broadridge clients with a capability to access the public and private markets. The purchase price was approximately $69 million.

Third Quarter 2020 Acquisition
In January 2020, the Company signed an agreement to acquire FundsLibrary Limited (“FundsLibrary”), a leader in fund document and data dissemination in the European market.  The combination of FundsLibrary’s capabilities with Broadridge’s existing regulatory communications offerings is expected to enable Broadridge to reduce complexity and cost for global fund managers, helping them to increase distribution opportunities and meet their regulatory requirements across multiple jurisdictions.  The acquisition is expected to close in February 2020, with an expected purchase price of approximately $69 million net of cash acquired and subject to normal closing adjustments.

Earnings Conference Call
An analyst conference call will be held today, Friday, January 31, 2020 at 8:30 a.m. ET. A live webcast of the call will be available to the public on a listen-only basis. To listen to the live event and access the slide presentation, visit Broadridge’s Investor Relations website at www.broadridge-ir.com prior to the start of the webcast. To listen to the call, investors may also dial 1-877-328-2502 within the United States and international callers may dial 1-412-317-5419.

A replay of the webcast will be available and can be accessed in the same manner as the live webcast at the Broadridge Investor Relations site. Through February 14, 2020, the recording will also be available by dialing 1-877-344-7529 passcode: 10136507 within the United States or 1-412-317-0088 passcode: 10136507 for international callers.

Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures 
The Company’s results in this press release are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) except where otherwise noted. In certain circumstances, results have been presented that are not generally accepted accounting principles measures (“Non-GAAP”). These Non-GAAP measures are Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share, and Free cash flow. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results.

The Company believes our Non-GAAP financial measures help investors understand how management plans, measures and evaluates the Company’s business performance. Management believes that Non-GAAP measures provide consistency in its financial reporting and facilitates investors’ understanding of the Company’s operating results and trends by providing an additional basis for comparison. Management uses these Non-GAAP financial measures to, among other things, evaluate our ongoing operations, for internal planning and forecasting purposes and in the calculation of performance-based compensation. In addition, and as a consequence of the importance of these Non-GAAP financial measures in managing our business, the Company’s Compensation Committee of the Board of Directors incorporates Non-GAAP financial measures in the evaluation process for determining management compensation.

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Earnings and Adjusted Earnings Per Share
These Non-GAAP measures reflect Operating income, Operating income margin, Net earnings, and Diluted earnings per share, as adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items that management believes are not indicative of our ongoing operating performance. These adjusted measures exclude the impact of: (i) Amortization of Acquired Intangibles and Purchased Intellectual Property, (ii) Acquisition and Integration Costs, and (iii) IBM Private Cloud Charges. Amortization of Acquired Intangibles and Purchased Intellectual Property represents non-cash amortization expenses associated with the Company’s acquisition activities. Acquisition and Integration Costs represent certain transaction and integration costs associated with the Company’s acquisition activities. IBM Private Cloud Charges represent a charge on the hardware assets to be transferred to IBM and other charges related to the IBM Private Cloud Agreement.

We exclude IBM Private Cloud Charges from our Adjusted Operating income and other earnings measures because excluding such information provides us with an understanding of the results from the primary operations of our business and this item does not reflect ordinary operations or earnings. We also exclude the impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, as these non-cash amounts are significantly impacted by the timing and size of individual acquisitions and do not factor into the Company’s capital allocation decisions, management compensation metrics or multi-year objectives. Furthermore, management believes that this adjustment enables better comparison of our results as Amortization of Acquired Intangibles and Purchased Intellectual Property will not recur in future periods once such intangible assets have been fully amortized. Although we exclude Amortization of Acquired Intangibles and Purchased Intellectual Property from our adjusted earnings measures, our management believes that it is important for investors to understand that these intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.

Free Cash Flow
In addition to the Non-GAAP financial measures discussed above, we provide Free cash flow information because we consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated that could be used for dividends, share repurchases, strategic acquisitions, other investments, as well as debt servicing. Free cash flow is a Non-GAAP financial measure and is defined by the Company as Net cash flows provided by operating activities less Capital expenditures as well as Software purchases and capitalized internal use software.

Reconciliations of such Non-GAAP measures to the most directly comparable financial measures presented in accordance with GAAP can be found in the tables that are part of this press release.

Advertisement

Forward-Looking Statements
This press release and other written or oral statements made from time to time by representatives of Broadridge may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by the use of words such as “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could be” and other words of similar meaning, are forward-looking statements. In particular, information appearing in the “Fiscal Year 2020 Financial Guidance” section are forward-looking statements. These statements are based on management’s expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors discussed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year 2019 (the “2019 Annual Report”), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2019 Annual Report.

These risks include:

  • the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients;
  • Broadridge’s reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge’s services with favorable pricing terms;
  • a material security breach or cybersecurity attack affecting the information of Broadridge’s clients;
  • changes in laws and regulations affecting Broadridge’s clients or the services provided by Broadridge;
  • declines in participation and activity in the securities markets;
  • the failure of Broadridge’s key service providers to provide the anticipated levels of service;
  • a disaster or other significant slowdown or failure of Broadridge’s systems or error in the performance of Broadridge’s services;
  • overall market and economic conditions and their impact on the securities markets;
  • Broadridge’s failure to keep pace with changes in technology and demands of its clients;
  • Broadridge’s ability to attract and retain key personnel;
  • the impact of new acquisitions and divestitures; and
  • competitive conditions.

Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.

 

SOURCE Broadridge Financial Solutions, Inc.

Fintech PR

NYSE Content advisory: Pre-Market Update + American Express Marks Founding Anniversary as Proofpoint Teams Up with Microsoft for Cybersecurity

Published

on

NEW YORK, March 18, 2025 /PRNewswire/ — The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor. Access today’s NYSE Pre-market update for market insights before trading begins.

Darren Lee, Executive Vice President and General Manager, Threat Protection Group at Proofpoint, will join NYSE TV Live at 9:00am to discuss this morning’s announcement that the cybersecurity and compliance company will utilize Microsoft Azure’s AI capabilities and cloud infrastructure to host Proofpoint’s human-centric cybersecurity.

Full Release: Proofpoint Establishes Global Strategic Alliance with Microsoft to Build on Azure and Strengthen Human-Centric Cybersecurity for Organization

Kristen Scholer delivers the pre-market update on March 18th

  • American Express celebrates its 175th Anniversary by opening the U.S. equity markets.
  • Proofpoint and Microsoft team up to help companies prevent the underlying causes of data breaches.
  • S&P 500 looks to build on back-to-back gains as investors turn their attention to housing data coming out this morning.

Watch NYSE TV Live every weekday 9:00-10:00am ET 

NYSE Logo

Video – https://mma.prnewswire.com/media/2644129/NYSE_Mar_18_2025_Market_Update.mp4

Logo – https://mma.prnewswire.com/media/2581322/New_York_Stock_Exchange_Logo.jpg

Cision View original content:https://www.prnewswire.co.uk/news-releases/nyse-content-advisory-pre-market-update–american-express-marks-founding-anniversary-as-proofpoint-teams-up-with-microsoft-for-cybersecurity-302404514.html

Continue Reading

Fintech PR

MDJM Announces Its Wholly Owned Subsidiary MD Local Global’s Partnership with Kengo Kuma & Associates for the Fernie Castle Oriental Landscape Project

Published

on

mdjm-announces-its-wholly-owned-subsidiary-md-local-global’s-partnership-with-kengo-kuma-&-associates-for-the-fernie-castle-oriental-landscape-project

FIFE, Scotland , March 18, 2025 /PRNewswire/ — MD Local Global Limited, a wholly owned subsidiary of MDJM LTD (Nasdaq: UOKA) (the “Company” or “MDJM”), an integrated global culture-driven asset management company, today announced that it has signed an Architectural Design Service Agreement with the Japanese architectural firm KENGO KUMA & ASSOCIATES, INC (KKAA). Since its establishment, KKAA has completed over 550 projects. This partnership is established to drive the Fernie Castle Oriental Landscape Project, which project is intended to harmonize traditional Eastern garden art with historic Scottish castle aesthetic, aiming to create a landmark that embodies both cultural richness and modern design.

Situated in the picturesque surroundings of Fife, Scotland, the 16th-century Fernie Castle is surrounded by 17 acres of woodlands, offering a serene, historic setting. The Oriental Landscape Project is anticipated to blend Eastern-inspired garden features with the castle’s Western architectural heritage, which may serve as a global example of harmonizing diverse cultural designs.

The project benefits from the expertise of KKAA, founded in 1990 by the renowned Japanese architect Kengo Kuma, a University Professor and Professor Emeritus at the University of Tokyo. KKAA has an extensive global presence. It is anticipated that KKAA’s approach to the Fernie Castle project will integrate innovative Eastern garden elements with the castle’s centuries-old Western historical character.

Siping Xu, Chairman and Chief Executive Officer of MDJM, stated, “We are excited to partner with KENGO KUMA & ASSOCIATES on this innovative project. By combining Eastern garden artistry with the historic Fernie Castle, we aim to create a unique cultural synergy and a compelling example of Eastern landscape design. We look forward to seeing the cultural impact of this collaboration.”

About MDJM LTD

MDJM LTD is a global culture-driven asset management company focused on transforming historical properties into cultural hubs that integrate modern digital technology with rich historical value. The Company has been expanding its operations in the UK, where it is developing projects such as Fernie Castle in Scotland and the Robin Hill Property in England. These properties are being remodeled into multi-functional cultural venues that will feature fine dining, hospitality services, art exhibitions, and cultural exchange events. As part of its broader strategy, MDJM seeks to position itself as a hub for artisan exchanges, art shows, and sales, leveraging its historical properties as platforms for promoting Eastern and Western cultural exchanges. This initiative reflects the Company’s commitment to furthering its global market expansion and enhancing its cultural business footprint. For more information regarding the Company, please visit https://www.ir-uoka.com/

CONTACT: ir@mdjmjh.com 

View original content:https://www.prnewswire.co.uk/news-releases/mdjm-announces-its-wholly-owned-subsidiary-md-local-globals-partnership-with-kengo-kuma–associates-for-the-fernie-castle-oriental-landscape-project-302404023.html

Continue Reading

Fintech

UP Fintech: Record-High Quarterly and Full-Year Revenue and Profit; Q4 Net Income Up Nearly 28x YoY; Global Client Assets Reach US$41.7 Billion

Published

on

up-fintech:-record-high-quarterly-and-full-year-revenue-and-profit;-q4-net-income-up-nearly-28x-yoy;-global-client-assets-reach-us$41.7-billion

 

UP Fintech Holding Limited (NASDAQ: TIGR) (“UP Fintech” or the “Company”), today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024. In the fourth quarter, the Company achieved a revenue of US$124.1 million, up 77.3% year-over-year (YoY), while full-year revenue reached US$391.5 million, a 43.7% YoY increase—both setting new record highs. Non-GAAP net income attributable to UP Fintech shareholders was US$30.5 million for the quarter, up 51.7% quarter-over-quarter (QoQ) and 2772.5% YoY, marking a record high. Full-year non-GAAP net income attributable to UP Fintech shareholders grew 65% YoY to US$70.5 million, reaching another record.

During the fourth quarter, UP Fintech added 81,300 new account openings globally, up 70.1% YoY, bringing the total number of global accounts to 2.4 million. During the quarter, the company added 59,200 new funded clients, marking a 51.4% YoY increase. For the full year 2024, UP Fintech added 187,400 new funded accounts, exceeding its annual guidance. As of the end of 2024, total funded clients reached 1,092,000, up 20.7% YoY. Supported by active market trading in the fourth quarter, total trading volume of the Company increased 142.2% YoY to US$198 billion. Net asset inflows from both individual and institutional clients reached US$1.1 billion during the quarter, while total client assets grew 36.4% YoY to a record high of US$41.7 billion.

Driving global expansion with dual focus on retail and institutional growth

Strengthening Singapore HQ, Accelerating Wealth Management for HNWIs and Family Offices

UP Fintech’s founder and CEO, Wu Tianhua, stated, “Over the past year, we achieved strong growth across all business lines, with record-high revenue and profitability in both Q4 and full-year 2024—Q4 non-GAAP net income attributable to UP Fintech shareholders was nearly 28 times higher than the prior year. Over the past three years, funded clients and total client assets have achieved CAGRs of 17.5% and 34.7% respectively, demonstrating our deepening market penetration and the continued trust and support of our global clients—key drivers of our long-term success.”

“2024 marked the Company’s 10th anniversary. With expansion into SingaporeHong KongNew ZealandAustralia, and the US, our global strategy drove total client assets to a record US$41.7 billion and users past 10 million. Singapore, as the Group’s headquarters, remains our largest market in terms of both new and existing clients. Hong Kong’s client assets grew by double digits as of the end of February 2025 compared to the end of 2024. Over the past year, we have rapidly expanded our business, with retail brokerage, institutional brokerage, wealth management, investment banking, and corporate services working in synergy. Beyond retail investors, we continue to earn the trust of high-net-worth and institutional clients, with retail and institutional businesses each now accounting for half of the Group’s total client assets. Looking ahead, we will continue to drive growth through our strategy of expanding markets, products, and services. We aim to meet the diverse needs of individual and institutional investors with broader offerings, fast onboarding, multi-asset trading, and tailored solutions powered by our all-in-one management platform.”

Singapore strengthens leading position with record-high annual trading volume and commission

Hong Kong full-year account openings up 48%, Obtained virtual asset exchange license

Advertisement

In 2024, the Company continued to broaden the reach of its globalisation strategy, increasing overall market share and enhancing brand recognition. Singapore, the Company’s headquarters, further solidified its leading position locally, delivering outstanding performance throughout the year. For the full year 2024, both total trading volume and commission income hit new records, increasing 196% and 66% YoY respectively. Net asset inflows climbed 119% YoY. The fourth quarter set new records as well, with total trading volume and commission income surging 415% and 158% YoY, respectively. Trading activity across stocks, options, and futures hit all-time highs across multiple indicators in Q4. US and Singapore stock trading volumes grew by 165% and 81% YoY, respectively, while US stock options and futures trading volumes increased by 267% and 646% YoY. Alongside these achievements, the Cash Boost trading account—designed specifically for the Singapore market to provide investors with flexible wealth management and efficient trading—doubled its account openings QoQ in the fourth quarter. Launched in partnership with a local licensed institution*, the Tiger BOSS Debit Card—Singapore’s first debit card offering fractional shares as rewards for everyday spending—saw card activations increase by over 30% QoQ during the quarter. To further expand its high-quality client base, Tiger introduced the High-Touch (Agency) Sales Module in November. Through enhanced customer onboarding, seamless trading experience and advanced risk management capabilities, the platform delivers more professional and personalized wealth management services to high-net-worth clients and institutional investors in Singapore, helping them achieve efficient asset allocation and long-term wealth growth.

The Hong Kong market continues to show strong growth momentum, with account openings rising by 48% YoY in 2024. In the fourth quarter, Hong Kong client assets increased by approximately 50% QoQ and surged sixfold YoY. Hong Kong stock trading activity increased significantly during the quarter, with trading orders and volume increasing by 62% and 90% YoY, respectively; US stock options trading volume increased by 80% QoQ. Entering 2025, driven by the recovery of the Hong Kong stock market, total client assets in Hong Kong had already achieved double-digit growth by the end of February compared to the end of 2024. Meanwhile, virtual asset trading by Hong Kong users picked up notably in Q4, with cryptocurrency trading orders doubling QoQ and trading volume increasing fourfold. Recently, the Company’s wholly-owned subsidiary, YAX (Hong Kong) Limited, received Type 1 (dealing in securities) and Type 7 (automated trading service) licenses from the Hong Kong Securities and Futures Commission (SFC). As an officially licensed virtual asset trading platform operator in Hong Kong, YAX now offers local clients with a seamless, one-stop asset management experience, providing both custody and trading services for cryptocurrencies. In addition, the Company won multiple prestigious industry accolades in Hong Kong during the fourth quarter. In particular, the Chicago Mercantile Exchange Group recognized the Company as both “Key Broker Partner 2024” and “Futures and Options Nurturer 2024”. Tiger’s industry leadership was further highlighted at the SGX-Phillip Nova Appreciation and SGX Derivatives Awards, where it was named one of the “Top 5 Chinese Futures Brokers for SGX China Index Derivatives” and one of the “Top 3 Chinese Futures Brokers for SGX Nikkei 225 Index Derivatives.”

In the US, TradeUP delivered strong performance across multiple business areas, maintaining steady growth. In the fourth quarter, supported by an exceptional trading experience, stock trading activity continued to climb, with trading volume from local clients up 38% QoQ. Options trading showed explosive growth, with trading volume and the number of contracts traded increasing by 384% and 215% respectively QoQ, highlighting TradeUP’s competitiveness and strong brand recognition in the options markets. Additionally, through its professional services and a solid market foundation, TradeUP saw a 15% QoQ growth in local customer assets, steadily expanding its market share. Moreover, TradeUP won the “Best Brokerage for Day Trading” at the Benzinga Global Fintech Awards for the second consecutive year, reaffirming its industry-leading position in efficient trading, outstanding execution, and superior user experience.

In Australia, UP Fintech achieved significant growth across key business metrics. During the fourth quarter, new account openings increased 148% YoY, while the number of first-time funded accounts rose 243.6% YoY, nearly doubling QoQ. Total first time funding amount also rose by 253.1% YoY and 151.1% QoQ – underscoring Tiger’s growing recognition and strong momentum in the Australian market. On the product side, A-Share Connect trading is now available in Australia, enabling local investors to easily access high-quality mainland Chinese stocks, further lowering the barriers for international investors to participate in the A-share market. Thanks to its outstanding trading experience and continuous innovation in financial services, the Company was also honored with the title of “Best Trading Platform Australia 2024” at the Global Banking & Finance Awards in the fourth quarter.

In New Zealand, the Company continued to expand its high-quality customer base, achieving strong growth in client assets during the fourth quarter. Total deposits increased by 272.8% YoY and 41.8% QoQ. Meanwhile, trading activity remained buoyant, with the number of trading accounts and total trading volume up by 120.2% and 111% respectively YoY. US stock trading was particularly strong, with orders for US stocks and US stock options up by 188.3% and 153.6% respectively YoY. For the full year 2024, total deposits in the New Zealand market increased 100.3% YoY, while the number of trading accounts and total trading volume grew 102.7% and 108.8% YoY, respectively.

Wealth AUC nearly doubles YoY, Institutional business widely recognized

Hong Kong IPO subscriptions up by over six times QoQ

In the fourth quarter, UP Fintech’s commission income reached US$56 million, up 35.8% QoQ and 154.9% YoY. Interest-related income amounted to US$58.5 million, an increase of 35.7% YoY. In 2024, the Company recorded US$159 million in commission income, up 71.8% YoY, while interest-related income reached US$203 million, a 25.8% YoY increase. The Company continued to enhance the one-stop global investment experience for clients. On the product side, options trading features were further upgraded, now supporting rollover of multi-leg options position, enabling investors to adjust their strategies flexibly based on market trends while improving the safety and efficiency of their capital usage. Additionally, new tools tailored for options sellers, such as Quota Calculator and Positions Calendar, were launched, along with a Top 0DTE (Zero Days to Expiration) Options leaderboard to help users quickly identify active options on trending stocks. Trading functions also saw improvements. A new “24 hour” trading option was added for US stocks, enabling investors to trade around the clock and better capture market opportunities while managing volatility. In the Wealth Section, our ETF Mall launched a new curated list of beginner-friendly US ETFs across various themes, helping users diversify their portfolios with ease.

Recently, TigerGPT, the industry’s first AI-powered investment assistant, completed a major upgrade, harnessing world-leading AI technology to deliver more accurate, in-depth market insights and support smarter, more efficient decision-making. After the upgrade, weekly user interactions increased by over 1,000%. As of February 2025, TigerGPT has served over 112,000 users globally, with more than 1.17 million conversations completed.

In the fourth quarter, the Hong Kong IPO market experienced explosive growth, with the number of subscribers increasing sixfold from the previous quarter, exceeding the total of the first three quarters of the year. The total amount of subscriptions increased by 4,123.9% QoQ, about 5.5 times the total of the first three quarters. Within the industry, we took the lead by introducing “100x leverage for all” for Hong Kong IPO subscribers. In addition, the Company promoted the “0 interest, 0 commission”** Hong Kong IPO subscription offers, truly maximising investors’ returns.

Advertisement

In the fourth quarter, wealth management assets under custody (AUC) from the retail side rose 98.3% YoY, with the non-money market fund assets and client numbers up 113.8% and 47.7% YoY, respectively. Among all newly funded accounts in Q4, the wealth user penetration rate reached 23%, reflecting strong client recognition of Tiger’s wealth management services. Meanwhile, we continue to enhance Tiger Wealth, upgrading the Notes section with new curated lists such as Trending Focus, Concept Portfolio, Asset Class Tracking and Conservative Focus, while expanding its offerings of complex financial products through additional structured products to meet diverse risk profiles and investment needs. Amid growing interest in Greater China investments, Tiger Wealth introduced a high-performing HKD money market fund managed by a leading Hong Kong fund house to the Singapore market, helping local investors optimize cash yields and liquidity management. In addition, we rolled out more FCN products tailored to the trading preferences of Singapore’s high-net-worth clients, further enriching their investment options.

TradingFront Turnkey Asset Management Platform (TAMP) continues to earn broad recognition from institutional clients through ongoing feature enhancements and high-quality service. The platform focuses on delivering highly customised account solutions, seamless online account opening, and multi-market, multi-asset trading support to help clients diversify their portfolios. In the fourth quarter, TradingFront’s AUC increased 33% QoQ, with the number of fixed investment accounts up 11% QoQ and structured products trading volume rising 66% QoQ. These results further reinforce TradingFront’s strong competitive position in the market.

Ranked fifth in the annual Hong Kong IPO underwriting rankings

ESOP SaaS platform achieved first full-year profitability

In the fourth quarter, our investment banking business participated in 8 US IPO projects, including Pony.ai, WeRide, and FlashEx, further demonstrating Tiger’s deep expertise and growing influence in the US IPO market. At the same time, we underwrote 9 Hong Kong IPOs, including InnoScience, MINIEYE, MGP Beauty and Dmall. With its professional underwriting services and extensive market coverage, Tiger ranked fifth in the Hong Kong stock brokerage ranking for margin financing. In 2024, the Company continued expanding its investment banking business, with the number of underwritings increasing 33% YoY. The Company ranked fifth in the Hong Kong IPO underwriting rankings, completing 32 IPOs over the year.

UP Fintech’s Employee Stock Ownership Plan (ESOP) platform, or UponeShare, added 16 new enterprise clients during the fourth quarter, bringing the total number of serviced enterprises to 613. In 2024, revenue from the ESOP SaaS platform grew 42.1% YoY, achieving annual net profit for the first time. Driven by strong client recognition and a high willingness for long-term cooperation, the Company secured 189 signed orders, with repeat orders accounting for 58.2% of the total and repeat order revenue increasing 140% YoY.

The Company added 11 new enterprise account clients during the quarter, including WeRide and COL, bringing the total number of corporate accounts to 466. During the quarter, the Company also collaborated with Li Auto to broadcast AI Talk, engaging in discussions around AI development to enhance consumer awareness of the brand. Additionally, Tiger partnered with the flagship community program “Real Trading Face to Face”, featuring an in-depth conversation between content creator “Tang Jie” and Cheetah Mobile’s CFO, exploring key highlights of Cheetah Mobile’s AI and robotics business. Furthermore, we organised investor research events for NetEase Youdao and Cheche Technology, providing insights into industry trends, technological innovations, and investment opportunities to support informed decision-making.

*Tiger Brokers (Singapore) Pte Ltd has partnered with a local licensed partner to provide card issuance and account issuing services.

**0 commission for cash subscriptions and subscriptions with 10x leverage or below, and 0 interest on margin financing subscriptions.

About UP Fintech

Advertisement

The post UP Fintech: Record-High Quarterly and Full-Year Revenue and Profit; Q4 Net Income Up Nearly 28x YoY; Global Client Assets Reach US$41.7 Billion appeared first on News, Events, Advertising Options.

Continue Reading
Advertisement
Advertisement European Gaming Congress 2024

Latest news

Trending