Moomoo's Parent Company Futu Releases Q3 Earnings Result with US$442.3 Million in Total Revenues, a 29.6 % YoY Increase

Rhea-AI Summary

Futu Holdings (Nasdaq: FUTU) reported strong Q3 2024 results with total revenues of US$442.3 million, up 29.6% YoY, and non-GAAP adjusted net income of US$180 million, increasing 20.8% YoY. Global users reached 24.1 million, with paying clients approaching 2.2 million, up 33.1% YoY. Total client assets grew to US$89.2 billion, rising 48.1% YoY. Trading volume increased to US$245 billion, up 74.7% YoY. The company saw significant growth in newly penetrated markets, with Japan, Canada, and Malaysia recording double-digit increases in account openings and client assets. The wealth management business achieved record growth with assets under management reaching US$12.5 billion.

Positive

• Revenue growth of 29.6% YoY to US$442.3 million
• Non-GAAP adjusted net income increased 20.8% YoY to US$180 million
• Total client assets grew 48.1% YoY to US$89.2 billion
• Trading volume up 74.7% YoY to US$245 billion
• Paying clients increased 33.1% YoY to 2.2 million
• Assets under management reached US$12.5 billion with 22% QoQ growth

Negative

• None.

Insights

Financial Analyst

FUTU delivered an impressive Q3 with significant growth across key metrics. $442.3M in revenue represents a 29.6% YoY increase, while non-GAAP adjusted net income grew 20.8% YoY to $180M. The company's expansion strategy is yielding strong results, with total client assets reaching $89.2B, up 48.1% YoY.

Trading volumes surged to $245B, showing remarkable 74.7% YoY growth. The wealth management segment is particularly noteworthy, with assets under management hitting $12.5B and achieving record QoQ growth of 22%. Geographic diversification is proving successful, with strong growth in newly penetrated markets like Japan, Canada and Malaysia.

The platform's expanding product offerings, including crypto trading in HK and Singapore and the first-mover advantage in US options trading in Malaysia, position FUTU well for continued growth.

Market Research Analyst

The strategic expansion into multiple markets with localized offerings is creating a robust competitive moat. The platform's success in Malaysia, gaining over 500,000 users in just seven months, demonstrates the effectiveness of FUTU's market penetration strategy. The company's position as HK's leading digital brokerage, combined with strong growth in US stock trading volume (90% YoY), indicates successful market diversification.

The introduction of new products like the Dividend Reinvestment Plan in Australia and fund products in Japan and Malaysia shows adaptability to local market preferences. This multi-market approach reduces dependency on any single region and creates multiple growth vectors, particularly important given the current global market dynamics.

JERSEY CITY, N.J., Nov. 19, 2024 /PRNewswire/ -- Moomoo's parent company Futu Holdings Ltd. ("Futu" or "the Company") (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, announced its unaudited Q3 2024 earnings with US$442.3 million in revenues, up 29.6% year-over-year ("YoY"), and US$180 million in non-GAAP adjusted net income, a 20.8% YoY increase.

The Company maintained robust growth, with its global users reaching over 24.1 million and paying clients approaching 2.2 million by the end of Q3, representing an increase of 14.4% YoY and 33.1% YoY, respectively. Total client assets accelerated significantly compared to Q2, reaching US$89.2 billion with a rise of 19.7% quarter-over-quarter ("QoQ") and 48.1% YoY. Growth in newly penetrated markets was particularly strong in this quarter. Japan, Canada, and Malaysia saw double-digit QoQ increases in account openings, paying clients, as well as client assets.

The Company's strong quarterly result was also reflected in the trading activities across its platforms, with the total trading volume increasing to US$245 billion, up 17.4% QoQ and 74.7% YoY.

Strong stock trading momentum across seven markets

Q3 marked another robust quarter for the Company's stock trading activities, particularly in US stocks. Global trading volume for US stocks grew by 23% QoQ and 90% YoY, with the US, Canada, and Malaysia recording high double-digit QoQ growth in this asset class. Hong Kong ("HK") stock trading volume showed resilience in Q3 with a double-digit YoY increase, reinforcing the Company's position as HK's No.1 digital brokerage. Trading volume in other stock markets, including Japan, Singapore, Malaysia, Canada, Australia and China A-shares via Stock Connect, also displayed noticeable growth, with each delivering a double-digit QoQ increase.

At the end of Q3, as Chinese assets attracted substantial global capital inflows, the Company's platforms experienced a significant surge in trading activities in HK stocks and China A-shares via Stock Connect. Entering into Q4, the Company will continue consolidating its one-stop investment platforms, enabling its clients to swiftly respond to and capitalize on market opportunities.

Deepened localization strategy to drive market growth

In its global expansion, the Company remains committed to a localized market strategy, tailoring its offerings and services to address the needs of local investors. In Q3, the Company launched the Dividend Reinvestment Plan for US stocks in Australia, catering to local investors' preferences. In response to growing demands in Japan and Malaysia for diversified investment options, the Company introduced fund products for local investors in both markets.

Such a deepened localization strategy has propelled strong business growth. The Company achieved growth in paying clients across all seven markets, with double-digit QoQ increases in Japan, Canada, Malaysia, and Australia. Malaysian users, in particular, exceeded half a million within just seven months since the brand's inception, establishing moomoo as an emerging force in the local financial services market. Client assets also surged in each of the seven markets, with high double-digit QoQ growth in Malaysia and Canada and triple-digit YoY growth in the US, Singapore, and Australia.

To strengthen connections with local investment communities and promote financial literacy, moomoo brought its flagship investment event, MooFest, to Singapore, Malaysia, and Japan in Q3, drawing the participation of nearly 10,000 investors. In HK, the Company continued to improve client services and trading experience by expanding its offline store network and upgrading online account services.

Expanding offerings to connect local investors with global opportunities

This quarter, the Company continuously broadened its offerings to help investors unlock new opportunities. In Malaysia, moomoo expanded access to the Singapore Exchange, Hong Kong Stock Exchange, and introduced China A-Shares via Stock Connect, connecting local investors to a wider range of global assets. Moomoo Malaysia was the first licensed brokerage to offer US options trading in the country. In Japan, moomoo has been strengthening its platform and now leads the market as the primary online broker offering the most US stocks in 24/5 trading hours. HK and Singapore launched crypto trading services in Q3 and received positive feedback throughout the quarter.

The global expansion of the wealth management business also accelerated, driving total assets under management to US$12.5 billion, with record-breaking QoQ growth of 22%.

Building on strong momentum, the Company will continue its expansion and innovation in Q4 and beyond, aiming to further enhance its capabilities and services to empower investors worldwide to achieve their financial goals.

About moomoo

Moomoo is a leading global investment and trading platform dedicated to empowering investors with user-friendly tools, data, and insights. Our platform is designed to provide essential information and technology, enabling users to make well-informed investment decisions. With advanced charting tools, pro-level analytical features, moomoo evolves alongside our users, fostering a dynamic community where investors can share, learn, and grow together.

Founded in the US, moomoo operates globally, serving investors in countries such as the US, Singapore, Australia, Japan, Canada and Malaysia. As a subsidiary of a Nasdaq-listed company, we take pride in our role as a global strategic partner of the Nasdaq, earning numerous international accolades from renowned industry leaders such as Benzinga and Fintech Breakthrough. Moomoo has also received multiple awards in the US, Singapore, and Australia for its cutting edge, inclusive approach to investing.

For more information, please visit moomoo's official website at www.moomoo.com 

 

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SOURCE moomoo

FAQ

What was Futu Holdings (FUTU) revenue in Q3 2024?

Futu Holdings reported total revenues of US$442.3 million in Q3 2024, representing a 29.6% increase year-over-year.

How many paying clients did FUTU have in Q3 2024?

Futu Holdings had approximately 2.2 million paying clients by the end of Q3 2024, showing a 33.1% increase year-over-year.

What was FUTU's trading volume in Q3 2024?

Futu Holdings' total trading volume reached US$245 billion in Q3 2024, up 17.4% quarter-over-quarter and 74.7% year-over-year.

How much were FUTU's total client assets in Q3 2024?

Futu Holdings' total client assets reached US$89.2 billion, showing an increase of 19.7% quarter-over-quarter and 48.1% year-over-year.