• Total Revenue: HKD4.4 billion, up 87% year over year.
• Full Year Revenue: HKD13.6 billion, up 36% year over year.
• Brokerage Commission and Handling Charge Income: HKD2.1 billion, up 128% year over year.
• Interest Income: HKD2 billion, up 52% year over year.
• Other Income: HKD353 million, up 157% year over year.
• Total Cost: HKD776 million, up 79% year over year.
• Gross Profit: HKD3.7 billion, up 89% year over year.
• Gross Margin: 82.5%, compared to 81.7% in the previous year.
• Operating Expenses: HKD1.4 billion, up 57% year over year.
• Income from Operations: HKD2.2 billion, up 117% year over year.
• Operating Margin: 50%, up from 43.1% in the previous year.
• Net Income: HKD1.9 billion, up 113% year over year.
• Net Income Margin: 42.2%, compared to 36.9% in the previous year.
• Effective Tax Rate: 16.1%.
• Total Client Assets: HKD743 billion, up 43% year over year.
• Total Trading Volume: HKD2.89 trillion, up 202% year over year.

• Warning! GuruFocus has detected 3 Warning Signs with FUTU.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Futu Holdings Ltd (NASDAQ:FUTU) exceeded its full-year guidance by adding 215,000 paying clients in Q4 2024, resulting in a total of over 2.4 million paying clients, a 41% increase year over year.
• The company recorded a significant increase in total client assets, reaching HKD743 billion, up 43% year over year and 7% quarter over quarter.
• Total trading volume surged by 202% year over year and 52% quarter over quarter to HKD2.89 trillion, with US stock trading volume reaching a historic high.
• Futu Holdings Ltd (NASDAQ:FUTU) launched numerous product innovations, including US margin trading in Japan and an option strategy builder in the US, enhancing its trading platform capabilities.
• The company maintained strong growth in overseas markets, with significant net asset inflows and robust client engagement, particularly in Hong Kong, Singapore, and Japan.

Negative Points

• The pullback of China equity in the second half of the quarter negatively impacted the valuation of clients' assets.
• Client acquisition costs increased moderately in Q4 2024, despite an active market environment, due to changes in market mix and channels.
• Operating expenses rose significantly, with general and administrative expenses increasing by 55% year over year and 51% quarter over quarter.
• The blended trading commission rate declined both year-over-year and sequentially in Q4, partly due to changes in product mix.
• Despite strong trading volumes, the brokerage income growth rate was slower than trading volume growth due to the pricing model for US options and stock trading.

Q & A Highlights

Q: You guided 800,000 new paying clients for this year, which is more than last year. How do you plan to achieve this without entering new markets? A: (Yu Chen Arthur, CFO) The strong guidance is based on continued growth in existing markets like Malaysia and Japan, which still offer robust growth potential. Additionally, mature markets such as Singapore and Hong Kong are expected to see good client acquisition due to favorable market conditions.

Q: Can you provide insights into the trading volume and new product pipeline for equity derivatives and crypto products? A: (Yu Chen Arthur, CFO) Trading volumes have been strong, with high engagement from retail investors. We plan to introduce crypto trading in the US and expand wealth management offerings, including structured notes. In Japan, we will enhance trading capabilities for Japanese equities and US trading.

Q: How is Futu integrating AI into its operations, and what are the expected benefits? A: (Hua Li Leaf, CEO) We are using AI to improve internal efficiency and client-facing services, such as market news and financial analysis. AI helps clients quickly understand market dynamics, and we are focused on ensuring the accuracy and timeliness of AI-generated information.

Q: What is the impact of recent US stock market corrections on trading volume and client assets? A: (Yu Chen Arthur, CFO) Despite market setbacks, volatility has led to increased trading activity. Hong Kong trading volumes have spiked due to interest in China assets. Overall, trading volumes remain robust.

Q: Can you discuss the competitive advantages of Futu's Wealth Management business in Hong Kong and Singapore? A: (Li Xu Robin, SVP) Our platform offers seamless navigation across asset classes, providing clients with a variety of investment options. We adopt a platform model, allowing clients to compare and choose the best products, which is a key advantage over competitors.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.