To The Moon

Q&A（Question-and-Answer Session）is a session after the company's prepared remarks where institutional investors and analysts ask management questions. In this dialogue, you may find some valuable information that might affect the stock price in the following weeks.

Now let's look at some key points from $Tiger Brokers(TIGR)$ Q2 2022 Q&A Session Transcript

Q：How to maintain and penetrate SG market with the increasingly competitive environment?

A：Yes the landscape is getting more competitive in Singapore, in addition to traditional brokers, there are also more online brokers coming to Singapore.We embrace the healthy competition as long as it could bring better products and services to local clients.While for brokers, customer acquisition cost control and acquiring clients with high quality are the imperative tasks to cope with during the competition.

Our purpose is to be the largest and the most trustworthy broker in Singapore. Our strategy is to shoot for the long term development, so w-e will not sacrifice the quality of clients or incur high CAC just for short term growth. We believe that research and development is the core co-mpetitiveness of Tiger, so we attach great importance to product quality. We continue to optimize our products and roll out more functions to meet the investment needs of different types of investors, thus to improve clients’ engagement and ARPU.

As we can see from our financials of the second quarter, we keep staying ahead in the Singapore market under the weak market backdrop an-d intensive competitive landscape. More than 60% of our 27,900 newly acquired clients in the second quarter coming from Singapore and th-e average net asset inflows of our new funded clients in Singapore exceeded 9,000 US dollars, while the average CAC decreased sequentially, solidify our leading position in both market share and client quality.

Q: Any business updates in AU and NZ markets?

A:In the second quarter, more than 10% of our new funded accounts coming from Australia and New Zealand.We still make all-out efforts, such as sponsoring the local sports team, to localize our products and services by adding more features that will give local investors more control over their investment, while keeping the user experience simple and efficient.The ranking of Tiger Trade app rose to No.31 by the end of the s-econd quarter, the highest among online brokers in Australia.As a result, our newly registered users increased more than 80% and the tradin-g volume also doubled on a sequential basis in Australia.We keep fine tuing our local marketing strategy and localization, and confident there will be more local users coming onto tiger platform

Q:The first question is we saw Tiger has acquired Hong Kong brokerage license for almost a year. What is the latest status and the development plan for like to develop business in Hong Kong?

A:We had some delays earlier this year due to covid, now everything is progressing on track.We are upgrading the trading infrastructures,
for example, getting more direct line, expand our server, doing testing with the exchange, backtest book and records using our own system, we aim to launch in the next few quarters.We also obtained the type 4&5 licenses from SFC, which allows us to create more contents for user-s and online community. we will apply for more SFC licenses to provide value added services to hk users.

Q:The regional breakdown of the new funded accounts in Q2 and the expected breakdown of the rest of the total new funded accounts in 2022?

A:Our internationalization is progressing well. In the 2nd quarter,over 70% of newly funded users were derived from overseas markets, in which, above 20% of the funded accounts came from Mainland, China, more than 60% came from Singapore and the rest 10% to 20% were from Australia and New Zealand.We expect the proportion of new clients acquired in Australia and New Zealand will increase in the second half year of 2022, alongside with our local development and expansion.

In the second quarter, the average CAC in Singapore was around 215 U.S dollars and about 156 U.S. dollars excluding branding expense.Meanwhile, we launched our service in Australia in the first quarter. When we enter a new market, similar to what we have done in Singapore, we will spend more on branding to promote our company, therefore the average CAC in Australia and New Zealand is still relatively high, which brings the total average CAC to approximately 300 U.S. dollars in the second quarter, decreased about 10% on a quarter over quarter basis.

The market sentiment was weak during the first half year, and investors prefer to stay on the sideline. Under the circumstance, we are very prudent with the marketing spending. We keep a very close eye on CAC and payback to make sure we can have a very healthy business model, and we will just be very dynamic to adjust our marketing strategy.

Q:And second question is in light of Fed accelerating rate hike cycle? What is the impact to the - to the company's business? And what is the potential response from the company? Thank you.

Broker dealer industry has very strong Beta effect, we think the Fed tightening will have mixed impacts on our business and industry. On the bright side, we can generate more interest incomes from the increased rate cycle, especially with our increased client base and self-clearing efficiency.While on the other side, to a certain extent, the liquidity tightening will have negative impacts on the capital market activity, transaction volume, as well as the IPO issuance.Strategically speaking, we will keep concentrating on investor education and product optimization, and consequently to help our clients better navigate market turmoil and enhance client engagement.In addition, we will keep upgrading the infrastructures in H-ong Kong so that we can provide better services to our clients once the market recovers.

Dear investors, friends on Tiger Community. Thank you for your time. Before the Q&A session for individual investors, we will give you all 5 minutes to leave your questions on the comment board in our live streaming room. Your questions will be collected by my colleagues.

Thank you for sending over your questions. Our CEO, Wu Tianhua will be online during this Q&A session.

Q:I noticed that Tiger's marketing and branding expenses in the first half of 2022 were much lower than the same period in 2021, by almost 50%. Could you please explain the reasons? Does it mean the company's growth is sluggish? How are the marketing and promotions results from your newly entered global markets?

A:The market sentiment was weak during the first half year, and investors prefer to stay on the sideline. Under the circumstance, we are very prudent with the marketing spending. We keep a very close eye on CAC and payback to make sure we can have a very healthy business model, and we will just be very dynamic to adjust our marketing strategy.

In the second quarter, more than 10% of our new funded accounts coming from Australia and New Zealand. We still make all-out efforts, such as sponsoring the local sports team, to localize our products and services by adding more features that will give local investors more control over their investment, while keeping the user experience simple and efficient. The ranking of Tiger Trade app rose to No.31 by the end of the second quarter, the highest among online brokers in Australia. As a result, our newly registered users increased more than 80% and the trading volume also doubled on a sequential basis in Australia. We keep fine tuing our local marketing strategy and localization, and confident there will be more local users coming onto tiger platform.

If you want to know more details,you can click here to re-watch the  Tiger Broker Q2 2022 Earnings Conference Call​