How to correctly analyze Moomoo's 2024Q1 quarterly report
Moomoo has just released its first quarter financial report. I believe many investors are very concerned about the value of this financial report and whether the current price is an ideal time to enter the market. With these questions, I would like to share with you my interpretation of Moomoo's financial report.
In short, the traditional discounted cash flow valuation method is "investing in companies that can continue to expand and generate cash flow in the future." By analogy, among the many perspectives for evaluating companies, the long-term development space and current development momentum of the company are the most critical. To gain insight into Moomoo's unique advantages, we must start with its core driving force - global customer growth.
Whether global expansion can be achieved is an important indicator of whether Moomoo has long-term growth potential. This not only reflects the healthy development status and potential of the company, but also is the core standard for evaluating its market competitiveness.
From the first quarter financial report of 2024, we are pleased to see that the number of new paying customers has surged by 330.8% year-on-year to 177,000, showing a steady and optimistic trend in the field of customer growth. The strategic layout and execution efficiency behind this provide strong support for this long-term logic.
The market was previously concerned about whether Moomoo's growth momentum could continue after its business in mainland China was affected, so we further analyzed the performance of the market segments.
Although Moomoo has a high market share in Singapore and Hong Kong, its business in the two places is still booming. The sign of global success lies in whether other business segments outside mainland China can bear fruit.
Public data shows that Moomoo has a leading market share in the two financial centers of Hong Kong and Singapore, but it still maintains a good growth trend. In the first quarter, new paying customers in both places achieved strong double-digit month-on-month growth.
This is due to Moomoo's deep integration into the local market culture, as well as accurate capture of market demand, provision of customized services, deepening of ties with investors in both places, and strengthening of its brand image.
Due to the high customer stickiness, the brokerage industry's business development model often relies on the accumulation of initial users, with high conversion costs and customers not easily lost unless there are excellent substitutes. Under the traditional model, the market share is usually not too high. However, through excellent products and marketing strategies, moomoo has undergone major changes in its business model. In addition, the Internet model has effectively broadened the boundaries of its business, resulting in a continuous increase in market share, with no signs of peaking yet.
The business in new markets has also shown gratifying growth.
The road to internationalization of Internet brokerages is like climbing a mountain, and every step is a test of strength and wisdom. It includes overcoming legal barriers, adapting to financial regulations in various regions, overcoming language and cultural differences, competing with international big-name brokerages and local competitors, and continuous technological innovation to ensure that the trading system is stable and efficient worldwide and provides users with a consistent high-quality experience. It is extremely difficult.
In addition, talent selection and management in different markets are also challenges. Even if the strategy is correct, if the execution-level talents cannot keep up, there will be many difficulties.
However, public data shows that moomoo's business has expanded to many important economies such as Japan, the United States, Australia, and Canada, and these markets have also witnessed the growth of moomoo.
Japan: The number of new customers doubled, and the user ratings on the Google Play store were extremely high. Moomoo's average daily downloads ranked third among online brokers. It continued to optimize the account opening process, improve the product experience, and launch targeted marketing activities, driving significant growth in new paying customers and average customer assets. Despite the rapid expansion of the customer base, the quarterly paying customer retention rate has remained above 98%.
Canada: The number of new customers also doubled, and the moomoo App became the most downloaded Android online brokerage trading application in the local market.
Malaysia: Leveraging Singapore's business foundation, with industry-leading product experience and high brand awareness, the brokerage business attracted more than 100,000 registered customers within six weeks of its launch, becoming the most downloaded financial application in Malaysia. Despite the slowdown in the second quarter, it is expected that the number of moomoo's paying customers in Malaysia will continue to grow significantly this year.
Singapore: New paying customers also recorded strong double-digit month-on-month growth.
At present, Moomoo has made significant progress in 2 of the 7 markets, and the remaining 5 markets are also following up steadily, which means that Moomoo is successfully realizing the transformation from "resource-intensive infrastructure construction" to "effective output, supplying blood for the overall Moomoo system" in more regions. Therefore, it is crucial for Moomoo to continue to "mine resources" in different regions and summarize and apply experience to new fields.
In the process of business expansion, as a growing company with cyclical business, it is more critical to pay attention to the ratio of "number of customers" to "sales expenses". The first quarter financial report of 2024 shows that the growth rate of the number of customers far exceeds the growth rate of "sales expenses". In the first quarter, the net increase in the number of customers with assets was 177,000, a year-on-year increase of 330.8%, while sales expenses only doubled, and customer acquisition efficiency was greatly improved.
This proves that Moomoo can effectively seize market opportunities and increase sales investment in a timely manner to attract more customers, which is particularly important in the early stages of internationalization of enterprises.
As a long-term investor in Moomoo, I believe that Moomoo, with customer growth as its core and a precise internationalization strategy, has outlined a magnificent growth picture on the global financial map. In the tide of global financial innovation and integration, Moomoo is like a ship with full sails, breaking through the waves. Its long-term development blueprint will be gradually realized in the continuous growth of market share and the continuous development of new regions.
From a global perspective, the current market value of about US$10 billion is only the starting point; compared with the market value of US$130 billion of Charles Schwab and the market value of US$50 billion of Interactive Brokers, Moomoo's growth journey has just set sail. I will continue to follow and observe. In the end, no matter how much analysis is done, it is not as direct as holdings and trading records. Based on my continued understanding of Moomoo's business model and stock price, and continued buying when it is undervalued, Moomoo has become the most profitable stock in my personal investment portfolio.
$Futu Holdings Ltd(FUTU.US$
$Futu Holdings Ltd(FUTU.US$
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Rabbit2121 :
to the sky.
lee…OP Rabbit2121: yes!!!