Up Fintech Reports Strong Revenue, Narrowed Losses in Q2
Fintech produced strong second-quarter results, as the company has nearly doubled its revenue and cut its losses by more than $30 million.
Shares in Up Fintech Holding Inc. (Nasdaq: TIGR) were trading up nearly 2 percent, at $5.09 apiece, on Friday afternoon, on the company's report that its revenue rose 88 percent in the second quarter.
The Beijing-based brokerage firm that serves Chinese investors globally, said its revenue in the three months through June reached $12.9 million, up 88 percent year-over-year. Net loss has narrowed to $1.9 million, or 1 cent per American depositary share, from $36.3 million, or $1.14 per ADS, a year ago, it reported.
Up Fintech attributed the revenue increase to higher commissions, financing service fees, interest income and other income. Revenue from commissions rose 30 percent to $6.8 million, while financing service fees were up 23 percent, at $1.6 million, from a year ago. Interest income reached $2.6 million, and other revenues reached $1.6 million.
"We are pleased to report that our Company delivered robust growth across business segments," Tianhua Wu, the chief executive officer and director of the company, said in a statement today.
He continued, "Our goal is to make investing more efficient for our users, we continued to invest in research and development and applied for more licenses so we may better serve clients on a global scale."
Wu also commented on the acquisition of Marsco Investment Corp., the investment service firm based in the United States. Marsco is a U.S. online brokerage service platform that was established in 1986 and is a clearing member of the U.S. Depository Trust and Clearing Corporation.
"In the U.S., we completed our acquisition of Marsco Investment Corporation, which will provide us with self-clearing capability and will greatly improve our profitability in the long term."
The deal gives a self-clearing license in the United States to Up Fintech's U.S. subsidiary.
Up Fintech became publicly traded in New York earlier this year and raised $104 million through the sale of 13 million ADSs at a price of $8 apiece.
In July, the company announced it was granted a license to operate in Singapore.