Moomoo by FUTU Holdings: Soaring to New Heights in 2024 with a Solid Growth Strategy

FUTU Holdings Limited (NASDAQ: FUTU), a leading tech-driven online brokerage and wealth management platform, recently announced its fiscal year 2024 financial results, demonstrating significant growth in both its financial and operational performance.

Financial Performance Overview

• Total Revenues: FUTU reported a 35.8% year-over-year increase in total revenues, reaching HK$13.59 billion (US$1.75 billion).

• Net Income: Net income climbed 27.0% to HK$5.43 billion (US$699.4 million).

• Trading Volume: Total trading volume surged 83.3% to HK$7.75 trillion.

• Paying Clients: Paying clients grew by 41.0% year-over-year to 2.41 million.

• Client Assets: Total client assets increased by 53.1% to HK$743.3 billion.

Moomoo is an independent brand of FUTU Holdings, a HK based Nasdaq listed global financial institution.

Business Drivers

FUTU’s growth was fueled by a combination of strategic market expansion, product diversification, and robust client acquisition.

1. Regional Expansion:

   • Hong Kong: Strong client acquisition supported by effective marketing around asset classes.

   • Singapore and Malaysia: Significant growth due to localized product offerings and increased brand trust.

   • Japan: Renewed growth driven by a superior U.S. stock trading experience.

2. Trading Momentum:

   • Strong performance of AI and crypto-related stocks contributed to the sharp rise in U.S. stock trading volume, which hit HK$2.08 trillion in Q4.

   • Hong Kong stock trading volume also saw a notable 117.0% quarter-over-quarter increase.

3. Wealth Management:

   • FUTU’s wealth management assets grew 92.6% year-over-year to HK$110.9 billion.

   • Expansion of structured products attracted high-net-worth clients.

Strategic Initiatives

• Moomoo and Futubull: FUTU continues to expand its platforms, Moomoo and Futubull, offering cutting-edge digital brokerage services. Moomoo’s simplified user interface and educational resources appeal to younger investors.

• AI Integration: Enhanced AI-powered features offer personalized investment insights, contributing to higher client engagement.

• IPO Leadership: FUTU underwrote 40 Hong Kong IPOs in 2024, securing its position as a market leader in IPO distribution.

Challenges and Considerations

While the results are impressive, FUTU faces rising operating expenses, particularly a 98.4% increase in marketing costs, which reflects intense competition in the fintech space. Additionally, regulatory scrutiny in various regions could pose operational challenges.

Outlook for 2025

Looking ahead, FUTU has set a target to acquire 800,000 net new paying clients in 2025. With continued regional growth, further product innovation, and a solid financial foundation, the company is well-positioned to maintain its upward trajectory.

Final Thoughts

For investors, FUTU’s blend of technological innovation, diversified product offerings, and strategic market presence makes it a compelling option in the online brokerage space. Keep an eye on the company’s expansion efforts, especially in Southeast Asia, as it seeks to solidify its leadership in global fintech.

Disclosure: This blog is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.