Futu Holdings Limited (FUTU) Beats Expectations with 86.8% Q4 Revenue Growth

Futu Holdings Limited, a leading tech-driven online brokerage and wealth management platform, has announced its unaudited financial results for the fourth quarter and full year ending December 31, 2024. The company showcased impressive growth across several key performance indicators, marking a significant upturn in its business trajectory.

In the fourth quarter of 2024, Futu Holdings Limited experienced a significant surge in various operational metrics. The total number of paying clients increased by 41% year-over-year, reaching 2,411,324 by the end of December 2024. This growth was supported by a 28.7% rise in registered clients, totaling 4,583,453, and a 16.2% increase in the total number of users to 25.1 million. Additionally, the company’s total client assets soared by 53.1% year-over-year to HK$743.3 billion, with daily average client assets reaching HK$722.3 billion in the fourth quarter, reflecting a 53.6% increase from the same period in 2023.

Financially, Futu’s fourth quarter of 2024 demonstrated strong growth with total revenues reaching HK$4,432.5 million (US$570.6 million), marking an 86.8% increase from the previous year. The company’s net income experienced a significant rise of 113.3% year-over-year, amounting to HK$1,869.5 million (US$240.7 million). Non-GAAP adjusted net income also saw a substantial increase of 105.4% year-over-year, reaching HK$1,952.3 million (US$251.3 million). The net income margin for the quarter increased to 42.2% from 36.9% in the same quarter of the previous year.

The total trading volume in the fourth quarter of 2024 reached a record HK$2.89 trillion, representing an impressive 201.7% increase year-over-year and a 51.5% rise quarter-over-quarter. The U.S. stock trading volume alone climbed by 36.1% sequentially to HK$2.08 trillion. This growth was driven largely by the performance of various AI and cryptocurrency names, which saw significant gains and became some of the most-traded U.S. stocks on Futu’s platform in 2024.

Futu Holdings Reports Double Beat in Fourth Quarter 2024 Results

Futu Holdings exceeded market expectations for the fourth quarter of 2024. The company reported earnings per share of US$1.74, surpassing the anticipated EPS forecast. This performance is indicative of Futu’s robust business model and its ability to capitalize on favorable market conditions, especially in the U.S. stock market where trading volume saw a 36.1% sequential increase. The company’s revenue also outperformed expectations, reaching US$570.6 million, well above the forecasted figures.

The substantial growth in Futu’s financial metrics can be attributed to several key factors. The company’s brokerage commission and handling charge income surged by 127.6% year-over-year to HK$2,057.4 million (US$264.9 million), driven by a significant increase in trading volume. Interest income also rose by 51.8% from the previous year, primarily due to higher interest income from securities borrowing and lending business and bank deposits.

The company’s net income for the fourth quarter of 2024 saw a remarkable increase of 113.3% year-over-year, amounting to HK$1,869.5 million (US$240.7 million). Additionally, the non-GAAP adjusted net income increased by 105.4% to HK$1,952.3 million (US$251.3 million), indicating a strong financial performance. The company’s basic net income per American Depositary Share (ADS) was HK$13.54 (US$1.74), compared to HK$6.40 in the fourth quarter of 2023, while the diluted net income per ADS was HK$13.35 (US$1.72), compared with HK$6.31 in the fourth quarter of 2023.

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FUTU Optimistic on 2025 Growth Prospects

Looking ahead to 2025, Futu Holdings (FUTU) is optimistic about its growth prospects. The company has set an ambitious goal of adding 800,000 net new paying clients in the coming year, building on the strong growth momentum observed in 2024. The company is focusing on expanding its market presence in key regions, including Hong Kong, Singapore, Malaysia, and Japan, where it has already seen significant success in acquiring new clients and increasing market share.

Futu’s strategic initiatives include expanding its range of structured product offerings in Hong Kong and Singapore to meet the investment needs of high-net-worth individuals. The company is also looking to enhance its U.S. stock trading experience, which has been a key driver of growth in trading volumes. The strong performance of many AI and cryptocurrency-related stocks in the fourth quarter of 2024 has contributed significantly to the increase in trading volume, and Futu aims to capitalize on this trend in the coming year.

In terms of financial guidance, Futu is optimistic about its growth prospects in 2025. The company is targeting 800,000 net new paying clients for the year, building on the momentum from the previous year. Futu’s focus on client acquisition and market expansion, particularly in regions like Singapore, Malaysia, and Japan, is expected to continue driving growth.

Additionally, the company is expanding its structured product offerings to better meet the investment needs of high-net-worth clients in Hong Kong and Singapore. This strategic move is anticipated to further boost total client assets and solidify Futu’s position as a leading player in the online brokerage and wealth management industry.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.