By Sam Boughedda
Investing.com -- Futu Holdings Ltd (NASDAQ:FUTU) shares fell 10% Friday after reporting earnings before the bell that missed earnings expectations.
The online brokerage and wealth management platform reported revenue of $205.5 million and an adjusted net income of $68.4 million in the fourth quarter. Adjusted earnings per share were 42 cents. Both revenue and earnings missed analyst expectations.
The company's brokerage commission and handling charge income rose 19.3% to $109.9 million, with interest income increased 83.3% to $79.2 million.
However, other income, which includes wealth management and corporate services, was down 2.2% to $16.4 million on a year-over-year basis.
Futu's users increased 45.8% year-over-year to 17.40 million at the end of the quarter. Meanwhile, the total number of registered clients increased 93.8% year-over-year to 2.75 million, with the total number of paying clients rising 140.8% to 1.24 million.
Total trading volume was $157.2 billion in the fourth quarter.
Futu, which owns investing platform Moomoo and is backed by venture capital affiliates of Tencent (HK:0700), Sequoia Capital, said the Moomoo platform further increased its visibility in markets such as the U.S. and Singapore, during 2021.
Following the report, the company's shares fell more than 10%, adding to its losses in the last 12 months, hitting a low of $24.05