Futu Holdings Ltd (NASDAQ:FUTU) stock rose 0.26% (As on Nov 25, 7:59:54 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 21 has reported 83% year-over-year increase in total revenues to US$222.4 million. Non-GAAP adjusted net income increased 58.5% year-over-year to US$83.0 million. Three businesses sustained strong growth momentum in the third quarter. Brokerage commission and handling charge income increased by 65.8% to US$119.9 million; interest income increased by 128.5% to US$81.1 million and other income increased by 55.6% to US$21.3 million. As of quarter end, the number of Futu users worldwide reached 16.6 million, an increase of 58.6% year-over-year; the number of Futu registered clients reached 2.58 million, an increase of 119.9% year-over-year; the number of Futu’s paying clients reached 1.17 million, an increase of 179.2% year-over-year. Client stickiness remained strong and the quarterly client retention rate was as high as 97%. It is worth noting that Futu’s quarterly net paying client increase was 166,000, which is a year-over-year increase of 44.7%. In the first three quarters, more than 70% of the net increase in paying clients are from Hong Kong SAR, Singapore, and other international markets. As of quarter end, client assets totaled US$54.45 billion, a year-over-year increase of 111.0%. Further, Futu’s quarterly total trading volume reached US$173.5 billion, a year-over-year increase of 33.1%. Client daily average revenue trades (DARTs) reached 576,810, a year-over-year increase of 52.2%.
Moreover, Futu’s global expansion further expedited in the third quarter. In Singapore, Futu officially launched fund products in the quarter and continued to expand the categories of trading products to meet the diversified investment needs of Singapore clients. During the quarter, 249 new videos and infographics were produced, covering 40 courses and topics; in collaboration with the Singapore Exchange (SGX) and other major financial institutions, Futu jointly held seminars and featured events such as the Paper Trading Competition to further promote its industry standing. In-depth investing education services and the ultimate online product experience have attracted numerous quality Singapore clients for Futu. In the quarter, the scale of Singapore client assets increased by 52.4% compared with the last quarter. In the United States, Futu insisted on fully localized operations and realized a high quarter-on-quarter growth in the number of US users. During the quarter, moomoo and Benzinga, a well-known US financial website, jointly organized moomoo’s first Paper Trading Competition in the U.S.