Companies /Financial Services

Futu Holdings Ltd

NASDAQ: FUTU Capital Markets
$122.14
▼ $2.12 (−1.71%) today
Markets closed · 10:04pm ET

Q3 2024 Earnings

Reported Nov 19, 2024, 6:01am ET · SEC source
$1.21
Miss −87.58%
EPS · est. $9.74
$442.3M
Miss −86.52%
Revenue · est. $3.3B
−3.2%
Trailing market
FUTU vs S&P since report
7 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%Nov 19Nov 20report 6:01am ETearnings+0.3%−0.6%
−3%0+3%Nov 19Nov 20earnings+0.3%−0.6%
FUTU −0.6%S&P 500 +0.3%
−3%0+3%Nov 19Nov 20report 6:01am ETearnings+0.4%−0.6%
−3%0+3%Nov 19Nov 20earnings+0.4%−0.6%
FUTU −0.6%NASDAQ +0.4%
−10%−5%0Nov 18Nov 27report 6:01am ETearnings+2.5%−4.4%
−10%−5%0Nov 18Nov 27earnings+2.5%−4.4%
FUTU −4.4%S&P 500 +2.5%
−10%−5%0Nov 18Nov 27report 6:01am ETearnings+1.9%−4.4%
−10%−5%0Nov 18Nov 27earnings+1.9%−4.4%
FUTU −4.4%NASDAQ +1.9%
−6.07%
Day of report
+2.64%
Next session
−3.39%
One week
−3.07%
30 days

S&P 500 over the same 30 days: +0.14%.

Did FUTU Beat Earnings? Q3 2024 Results

Futu Holdings posted a sharp earnings miss in Q3 2024, with adjusted EPS of $1.21 falling 87.58% short of the $9.74 consensus estimate, while revenue of $442.27 million came in 86.52% below expectations and declined 83.3% year-over-year, reflecting the significant gap between Wall Street models and the company's reported figures in its foreign issuer filing. The most material driver of the quarter's underlying operational story, however, was a 74.7% surge in total trading volume to HK$1.90 trillion, which powered a 29.6% year-over-year increase in total revenues on a local-currency basis and lifted brokerage commission income 51.5% YoY. Client growth accelerated sharply, with 154,000 new paying clients added in the quarter, up 138.0% year-over-year, bringing the total paying base to 2.20 million. Analysts have responded positively to the operational momentum, with at least one firm raising its price target on the stock to $134.80. Looking ahead, management expressed confidence that full-year new paying client additions will comfortably exceed its 550,000 guidance.

Key Takeaways
  • 74.7% YoY increase in total trading volume to HK$1.90 trillion
  • 138.0% YoY increase in new paying client acquisitions to 154,000
  • 48.1% YoY growth in total client assets to HK$693.4 billion
  • Strong U.S. stock trading volume driven by technology stocks and leveraged ETFs amid heightened volatility
  • 87.5% YoY growth in wealth management asset balance to HK$97.3 billion
  • Cost savings from U.S. self-clearing business
  • Daily average revenue trades (DARTs) increased 68.0% YoY to 698,811

“We acquired 154 thousand paying clients in the third quarter, up 138.0% year-over-year and flattish quarter-over-quarter. In the first nine months of the year, we acquired 487 thousand paying clients and we expect full year growth to comfortably exceed our guidance of 550 thousand, thanks to resilient growth in established markets and strong momentum in newer ones.”

Futu Holdings CEO, on the earnings call

Forward Guidance & Outlook

Futu expects full-year 2024 new paying client additions to comfortably exceed its guidance of 550,000, supported by resilient growth in established markets (Hong Kong, Singapore) and strong momentum in newer markets (Malaysia, Japan, U.S., Canada, Australia). Management noted average client assets in the U.S., Canada, and Australia all recorded double-digit sequential growth for three consecutive quarters. The company continues to invest in brand building and product launches across its international markets.

FUTU YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$0$800.0M$1.6B$2.4B$2.6B$442.3MRevenue$2.2B$361.8MGross Profit$1.3B$222.8MOperating Income$1.1B$169.8MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

FUTU Revenue by Segment

Brokerage Commission and Handling Charge Income$196.8M+51.5%
Interest Income$218.7M+12.9%
Other Income$26.8M+52.1%

Figures from SEC filings and company reports. Not investment advice.