Futu shares fall as revenue growth slows

HONG KONG - Futu Holdings Limited (NASDAQ:FUTU ) reported second quarter earnings and revenue that beat analyst estimates, but shares fell 2.2% as revenue growth decelerated from previous quarters.

The online brokerage and wealth management platform posted adjusted earnings per ADS of HK$8.66 ($1.11), exceeding the consensus estimate of HK$8.17. Revenue rose 25.9% year-over-year to HK$3.13 billion ($400.7 million), topping expectations of HK$2.85 billion.

While both top and bottom line results surpassed forecasts, Futu's revenue growth rate slowed compared to 37.2% in Q1 and 42.7% in Q4 2023.

Total paying clients increased 28.8% YoY to 2.04 million. The company added 155,000 new paying clients in Q2, down 12.5% sequentially but up 167.8% YoY.

"Given the strong year-to-date momentum, we would like to raise our guidance again to 550 thousand new paying clients in 2024," said CEO Leaf Hua Li.

Total client assets rose 24.3% YoY to HK$579.3 billion ($74.2 billion). Trading volume jumped 69% YoY to HK$1.62 trillion, driven by increased trading of U.S. and Hong Kong stocks.

Futu's margin financing and securities lending balance grew 28.8% YoY to HK$43.8 billion, reaching an all-time high.

The company continues to expand internationally, with strong client growth in Singapore, Hong Kong and Japan. Futu recently launched cryptocurrency trading in Hong Kong and Singapore.

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Source: Investing.com