Internet Brokerage Futu's Revenue Drops 25.6% YoY in Q1 2022

Financials Author: Yiran Xing Jun 08, 2022 12:46 AM (GMT+8)

Futu's international strategic footprint is expanding.

Financial Report

Futu Holdings Limited (Chinese:富途控股有限公司) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, recently announced its unaudited financial results for the first quarter ended March 31, 2022.

The data shows that the firm's total revenues decreased 25.6% year on year to USD 209.5 million in the first quarter of this year. And the total gross profit was HKD 1,413.0 million (USD 180.4 million), a decrease of 19.8% from HKD 1,761.4 million in the first quarter of 2021.

Besides, the firm's Non-GAAP adjusted net income decreased to HKD 622.2 million (USD 79.4 million), down 47.2% over the previous year. Non-GAAP adjusted net income enables the management to assess the company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. So the company (Futu) believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance.

In terms of items, Futu generated USD120 million in trading commissions and fees, USD73.4 million in interest income and USD12.6 million in other income (including wealth management and corporate services businesses) in the first quarter.

In terms of customers, as of quarter end, Futu had 18.1 million global users, up 27.1% year on year; 2.9 million clients with accounts, an increase of 48.7% from the same period last year; and 1.2 million clients with assets, up 67.9% over the precious year. It is worth noting that Futu added approximately 82 thousand paying clients and over 80% of them were from Hong Kong, Singapore and other overseas markets, and that the client retention rate for the period was 98.2%.

In Q1 2022, the market was volatile and Futu was placed on the US Securities and Exchange Commissions' definitive delisting list along with a dozen other China Concept Stocks. However, Futu's globalization has not slowed down and Futu is actively expanding its business in Singapore, Australia and the US market. This international expansion has had a positive effect on futu's ability to withstand volatile performance.

In the first quarter of 2022, the asset under management (AUM) of Futu's client in Singapore grew by over 15% quarter-on-quarter. On 8 March 2022, Futu officially launched its operations in Australia. As of Q1 2022, Futu holds 50 licences and qualifications (including in-principle approvals) in Hong Kong, China, the US, Singapore, Australia and pan-Europe.