Futu Holdings Limited (FUTU) Q2 2023 Earnings Call Transcript

Futu Holdings Limited (NASDAQ:FUTU) Q2 2023 Results Conference Call August 24, 2023 7:30 AM ET

Company Participants

Daniel Yuan - Investor Relations

Leaf Hua Li - Chairman and Chief Executive Officer

Arthur Chen - Chief Financial Officer

Robin Xu - Senior Vice President

Conference Call Participants

Chiyao Huang - MS

Pu Han - CICC

Cindy Wang - China Renaissance

Leon Qi - Daiwa

Operator

Hello, ladies and gentlemen. Welcome to Futu Holdings' Second Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Q&A session. Today's conference call is being recorded. [Operator Instructions]

I would now like to turn the conference over to your host for today's conference call, Daniel Yuan, Chief of Staff to CEO and Head of IR at Futu. Please go ahead, sir.

Daniel Yuan

Thanks, operator and thank you for joining us today to discuss our second quarter 2023 earnings results. Joining me on the call today are Mr. Leaf Li, Chairman and Chief Executive Officer; Arthur Chen, Chief Financial Officer; and Robin Xu, Senior Vice President.

As a reminder, today's call may include forward-looking statements, which represent the Company's belief regarding future events, which by their nature are not certain and are outside of the Company's control. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information about the potential risks and uncertainties, please refer to the Company's filings with the SEC, including its annual report on Form 20-F.

With that, I will now turn the call over to Leaf. Leaf, will make his comments in Chinese and I will translate.

Leaf Hua Li

Thank you all for joining today. I'm pleased to announce that we acquired over 57,000 paying clients in the second quarter, bringing the total number of our paying clients to nearly 1.6 million, robust organic growth across all overseas markets drove a 41% sequential acceleration in client acquisition.

In the second quarter, Hong Kong market contributed approximately one third of new paying clients as effective offline marketing campaigns attracted older clients who prefer in-person instructions on how to open trading accounts and navigate our user interface.

In Singapore market, we also witness strong paying client growth on the back of U.S., equity market outperformance and the enticing yield of money market funds. In the U.S., we brought in more clients of higher quality as we iterated on marketing channels and client incentives. Despite fragile market sentiments, our group's quarterly paying client retention rate remained above 98%.