UP Fintech (Nasdaq: TIGR), the operator of Tiger Brokers, generated $55.4 million in total revenue for the third quarter of 2022. The figure strengthened by 3.6 percent from the previous quarter but declined by 8.8 percent year-over-year.
The company posted total net revenue of $51.1 million, which decreased by 9.7 percent year-over-year but increased by 2.3 percent from the second quarter. However, there was a drastic drop in the company's net income, which came in at $3.3 million compared to $20.5 million in the same quarter of last year. That was a yearly descent of almost 84 percent.
The non-GAAP income came in at $6.6 million, which was an improvement. The figure was at $5.3 million in the third quarter of 2022, meaning there was an improvement of 26.2 percent year-over-year, while the quarterly figures strengthened by 91.3 percent.
“The macro environment showed no significant improvement over the third quarter. The continued Federal Reserve tightening of monetary policy and increases in short-term interest rates slowed down market activities, client asset growth as well as IPO issuances, while our margin business benefited due to higher interest rate,” said Wu Tianhua, the Chairman and CEO of UP Fintech.
Meanwhile, the company reduced its total operating costs and expenses by 13.1 percent to $47.3 million. Also, its execution and clearing expenses declined by 66.1 percent to $3.2 million.
Client Metrics
The official announcement on Wednesday further detailed that 22,700 funded accounts were added to the trading platform. Now, Tiger Brokers has a total of 754,100 funded accounts, which is a yearly increase of 23.2 percent.
However, the total account balance decreased by 36.9 percent to $13 billion. The company cited market losses behind the decline of this figure, highlighting it kept “acquiring high-quality clients while being prudent with marketing and branding expenses.” UP Fintech further said its continued investment is in research and development.
Futu, another Nasdaq-listed brokerage operator and a direct rival of Tiger Brokers, recently reported a 12.4 percent increase in its third quarter’s revenue to $247.9 million. The net profit of that company jumped by 22.7 percent.
