Moomoo’s parent company Futu Holdings Limited (Nasdaq: FUTU) (“Futu”), a leading tech-driven digital brokerage and wealth management platform, reported stable growth for the third quarter ending September 30, 2022, with US$247.9 million (HK$1.95 billion) total revenues, and US$102.7 million (HK$806.1 million) non-GAAP adjusted net income.
Financial and strategic highlights of the third quarter:
- As of quarter end, the total number of users of moomoo and its sister brand Futubull increased 15.6% year-over-year to 19.15 million.
- Total number of registered clients increased 21.4% year-over-year to 3.13 million.
- Total number of paying clients increased 23.8% year-over-year to 1.45 million.
- The number of newly acquired paying clients in the third quarter was 58,000, with approximately 90% of them being from the United States, Hong Kong SAR, Singapore, Australia, etc.
- By the end of the third quarter, the total client assets amounted to US$47.1 billion (HK$369.6 billion). In Singapore, the total client assets increased by 77.8% year-over-year.
- The quarterly client retention rate remained high at 98%.
- Corporate and institutional services continued to thrive with IPO and IR clients totaling 301, an increase of 40% YoY. The number of ESOP clients reached 572, representing an increase of 76% YoY.
- Total client assets in its wealth management business reached US$3.31 billion (HK$25.97 billion) in the third quarter, representing a 46.7% growth YoY. The company has collaborated with 68 world-renowned global financial institutions in offering diverse fund products to clients, with two new partners onboarded this quarter.
“On Celebrating our 10th Anniversary, we are glad to see more profound achievements in entering new markets and expanding our business worldwide. In the third quarter, we continued to achieve solid growth with increasing users and clients joining us. Our unwavering efforts in sharpening technology edge, bringing new features and upgraded products to fulfill unmet demands across various markets are the key to locking in high-level user loyalty for our brands. The client retention rate remained high at approximately 98% during the period.” said Mr. Leaf Hua Li, Futu’s Founder, Chairman, CEO and Chairman of the Technology Committee.
In July, major global rating agency Standard & Poor’s reaffirmed Futu’s investment grade long-term issuer credit rating at BBB- and maintained its stable outlook on the long-term rating. S&P highlighted Futu’s capital adequacy, business diversification and expansion strategy to international markets. S&P expected Futu to maintain its risk appetite, underwriting standards, and good loan quality while expanding the business scope and international outreach over the next 24 months.
Futu Reinforces Market Leadership in Hong Kong with Diverse Products and App Features
In the third quarter, Futu reinforced its leading position among digitalized brokerages in Hong Kong and saw its users and clients increase steadily. Futu has been relentlessly ramping up its products and service diversity through technology and operational advancement. The Futubull app introduced several new product features, including Monthly Stocks Savings Plan, which enables clients to take a dollar-cost averaging investing approach, a sought-after feature to minimize the impacts of volatility when investing.
This quarter marked the company’s new subscription service for the government’s Silver Bond issuance in Hong Kong, an investment product designed to provide steady returns for Hong Kong residents aged 65 years and above. Numerous offline service points and a 24-hour hotline smoothed the senior generation’s journey to digital investments.
In the first three quarters of 2022, Futu ranked second among local securities firms in IPO underwriting by providing such services to 23 companies in the Hong Kong market. Futu’s institutional and corporate services brand remains the top choice for companies seeking ESOP solutions, especially those in the healthcare, automotive logistics, TMT, entertainment and cutting-edge technology industries.
Futu’s wealth management business partnered with 68 global fund companies to offer services to various investors, with two new partners onboarded in the third quarter. As of quarter end, alternative assets saw rapid growth with assets under management (AUM) in private equity improving 67.4% sequentially.
Moomoo Singapore Posts Significant Performance in Wealth Management
In Singapore, Moomoo Financial Singapore Pte. Ltd (“moomoo SG”) continued to attract savvy and seasoned investors and increased its AUM by 77.8% YoY. The moomoo investment super-app is used by one-fifth of the local adult population aged 20-70. Moomoo SG responded to the surging need for portfolio diversification amid inflation by launching a cash management solution, Moomoo Cash Plus which enables clients to put their idle cash to work.
The company collaborated with CSOP Asset Management to launch the first T+0 subscription and redemption of USD money market funds. As of quarter end, wealth management AUM in Singapore jumped 408% QoQ and the number of fund investors climbed 203% QoQ.
In the third quarter, moomoo’s institutional and corporate services business continued its growth momentum and provided IR services to companies such as The Place Holdings. Meanwhile, moomoo SG was appointed by Lincotrade & Associates Ltd. as the joint placement agent in the placement for the company.
moomoo SG is committed to the communities it serves in Singapore. It promotes financial education by hosting educational events and seminars. It held the Paper Trading Competition for Charity, enhancing collaboration with institutional and industry partners to promote financial and investing literacy. In July, moomoo SG held its first large-scale in-person seminar with Singapore Exchange. The seminar attended by a packed audience promoted investor education. In August, moomoo participated in INVEST Fair and took the opportunity to highlight the power of financial technology.
Trading Platform Moomoo’s Popularity Grows Rapidly in the US and Australia Thanks to Strong R&D Capability
During the third quarter, moomoo launched several popular new product features to help investors ride the market. This included two significant features—Earnings Calendar and Industrial Chain.
The new Earnings Calendar feature provides quick access for users to stay alert to a company’s earnings call during the busy earnings season. The Earnings Interpretations feature is also available to help investors make more informed investment decisions.
The Industrial Chain is an intuitive feature that enables users to view companies in 16 industries’ upstream and downstream businesses, making it possible for investors to seize investment opportunities and trade like a pro.
In the US, nine YouTubers—including technical analysts, financial influencers and personal finance coaches—participated in moomoo’s September Tutorial Video Challenge by filming their user journey with the app’s new Earnings Calendar feature. These videos gained almost 100,000 votes in total from moomoo users.
Moomoo also collaborated with other renowned financial educators and influencers at FinCon 2022, an influential financial blogger conference in the US. Having established itself in the Bay Area over the last few years, moomoo is dedicated to enhancing brand awareness across the US.
In Australia, moomoo partnered with Macquarie University to launch a national research study, which investigates how sustainable trading education and transparency of corporate social responsibility credentials impact Australian investor behavior. The industry-first study will explore the behavior of multiple groups of investors to understand how face-to-face education or exposure to a company’s ESG score influence a person’s decision to invest. Research participants will use moomoo’s simulated trading environment that reflects actual trading conditions with real market data.
Moomoo also joined the largest online investment summit for financial content creators in Australia—the 2022 Entrepreneur Summit hosted by Henry Wei, which is greatly expanding its presence in the Australian market.
Moomoo and its parent company Futu remain committed to promoting financial literacy, investor education and responsible investing for investors of all levels. A new feature, Study Plan, was launched to help expand users’ financial knowledge base via well-designed investing curriculums. As of quarter end, the company rolled out more than 3,000 courses online in English and Chinese, including 757 articles and 204 videos on moomoo.