Futu Holdings Ltd Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-20
Futu Holdings Ltd. Reports Q2 2024 Financial Results
JERSEY CITY, N.J., Aug. 20, 2024 /PRNewswire/ -- Futu Holdings Ltd. ("Futu" or "the Company") (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, announced its unaudited Q2 2024 earnings.
Key Financial Metrics
| Metric | Q2 2024 (Current) | Q2 2023 (YoY) | Q1 2024 (QoQ) | Wall Street Estimates |
|---|---|---|---|---|
| Revenue | $400.7M | $318.3M | $363.1M | $363.96M |
| Non-GAAP Adjusted Net Income | $166.0M | $152.8M | Not Provided | Not Provided |
The revenue for Q2 2024 stood at $400.7 million, reflecting a 25.9% increase year-over-year (YoY) and a 10.4% increase quarter-over-quarter (QoQ). Non-GAAP adjusted net income was $166.0 million, marking an 8.6% YoY increase. The Company exceeded Wall Street expectations of $363.96 million in revenue for the current quarter.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Previous Guidance | Comparison |
|---|---|---|---|
| Wealth Management | $10B AUM | Not Provided | - |
Futu experienced double-digit QoQ growth in client assets across several geographic markets, including Singapore, the US, Australia, and Canada. Both the US stock trading volume and daily active revenue trades hit one-year highs, boasting an 84.1% YoY increase in US stock trading volume.
Key Operational Data
| Metric | Q2 2024 | Change (YoY) |
|---|---|---|
| Global Users | 23.3M | +13.3% |
| Paying Clients | 2M | +28.8% |
| Client Retention Rate | >98% | Maintained |
| Total Client Assets | $74.2B | +11.9% (QoQ) |
| Total Trading Volume | $207.7B | +21.1% (QoQ) |
The Company reached a milestone of two million paying clients, representing a growth of 28.8% YoY. The total client assets surged to $74.2 billion, an 11.9% QoQ increase, with a notable 21.1% QoQ rise in total trading volume.
Comments from Company Officers
Futu's top executives highlighted the Company’s strong performance in Q2 driven by the robust stock trading activities and continuous international expansion. The strategic focus on diversifying offerings across markets and assets has been instrumental in its success. The executives emphasized ongoing efforts to enhance client experience and expand the range of investment products.
Dividends and Share Repurchase Program
No information on any dividends or share repurchase program was provided in the earnings release.
Forward Guidance
The Company did not provide any forward guidance in its Q2 2024 earnings release.
Stock Price Movement
After the earnings release, Futu Holdings Ltd. experienced a minor stock price movement of +0.048%.
Conclusion
Futu Holdings Ltd. demonstrated strong performance in Q2 2024, with significant revenue and client growth across its global operations. The Company continues to capitalize on its expanding market reach and diversified investment offerings, propelling its leadership in the tech-driven brokerage and wealth management sector.
