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• 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.