Ladies and gentlemen, thank you for standing by, and welcome to UP Fintech Holding Limited's second quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. There will be a presentation followed by question and answer session. I must advise you that this conference is being recorded today, September 7, 2022. I'd now like to hand the conference over to your first speaker today, Mr. Aaron Lee, Investor Relations Director. Thank you. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining us for the call today. UP Fintech Holding Limited's second quarter 2022 earnings release was distributed earlier today, and it's available on our IR website at ir.itigerup.com, as well as the news wire services. On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and Chief Executive Officer, Mr. John Zeng, Chief Financial Officer, and Mr. Ken Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss corporate highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer your questions during the Q&A session that follows their remarks. Now let me cover the safe harbor. The statements we are about to make contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
A number of factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information about factors that could cause actual results to materially differ from those in the forward-looking statements, please refer to our Form 6-K furnished today, September 7, 2022, and our annual report on Form 20-F filed on April 28, 2022. We undertake no obligation to update any forward-looking statement except as required under the applicable law. It is my pleasure to now introduce our Chairman and Chief Executive Officer, Mr. Wu. Mr. Wu will make remarks in Chinese, which will be followed by an English translation. Mr. Wu, please go ahead with your remarks. Hello, everyone. Thank you for joining the Tiger Brokers' second quarter 2022 earnings conference call. Market backdrop remained challenging in the second quarter, particularly in the U.S. capital market.
The weak U.S. market performance somewhat slowed down the trading activities and asset growth, given that our clients have more exposure in the U.S. market compared to Hong Kong. With growth in the B2B business and prudent capital deployment, the total revenue of the second quarter increased by 2% from the first quarter to reach $53.5 million. Non-GAAP net income also turned profitable to $3.5 million, demonstrates the resilience of our business model during market turbulence. They added 37,900 funded accounts this quarter, with over 70% coming from outside of China. Our total number of funded accounts also exceeded 730,000 by the end of the second quarter, an increase of 38.2% from the same quarter last year.
We are confident to deliver our annual guidance of acquiring at least 100,000 new funded accounts this year. In the second quarter, mark-to-market loss still had an adverse impact on the total client assets, which slightly decreased by 2.3% to $14.9 billion compared to the end of the first quarter. The trend of healthy asset inflow continues. Net asset inflows exceeded $1.5 billion this quarter. Funded account retention rate exceeded 99% this quarter, demonstrating users' confidence and trust in our platform.
在一季度人均$8,000左右基础上有了进一步的提升，说明即使在市场存在不确定性的情况下，我们在新加坡的业务依然保持了市场份额和客户质量的领先优势。
We pay very close attention to client quality and payback period. In the second quarter, average CAC per funded account was about $300, a 10% decrease from the first quarter, where we keep acquiring high quality clients. Taking Singapore as an example, we've been in Singapore for two years, and now Singapore already becomes our company's largest market in terms of both incremental and existing clients. More than 60% of our new funded accounts in the second quarter coming from Singapore, a testament to our industry leading user acquisition in the region. The average net asset inflows of our newly acquired clients in Singapore exceeded $9,000 in the second quarter, a further decrease from around $8,000 in the first quarter, solidifying our leading position in both market share and client quality in Singapore.
我们持续加大在研发上的投入，以提升运营效率和用户体验。在资金结算方面，今年二季度整体的清算成本占总佣金收入的比例得到进一步优化，环比持续下降。为了帮助我们的用户面对持续波动市场环境，以及适应不同国家用户的需求，我们的APP推出了8.0版本，包括了个股业Pro、Lite双版本功能，更好地满足不同类型投资者的使用偏好和投资需求。
We continue to invest in research and development to improve operational efficiency and to enhance user experience. With self clearing, the execution and clearing cost as a percentage of the trading commission further decreased compared with the previous quarter. To better help our users to navigate the market turmoil, we have launched the 8.0 version of our app with both Lite and Pro modes, which provides a more simplified interface and diversified products offering.
老虎国际的To B业务保持迅猛发展势头。今年二季度新增26家ESOP客户，累计服务客户已达364家，同比增长68%。老虎国际所提供的ESOP服务覆盖了从方案设计到数字化管理、股权激励全流程服务体系，已经成为众多A股、港股、美股、上市公司和发展期公司的首选服务商之一。在投行侧，老虎国际二季度参与承销了11个美港股IPO项目，其中3个美股项目中作为主要牵头行。据第三方万得资讯数据提供的2022年上半年美股IPO承销排行榜，老虎国际今年上半年所承销的美股IPO发行金额和承销数量均在全球投行排名中位居第三位。仅就今年第二季度而言，老虎地位在美股所承销的IPO发行金额和承销数量排名全球第一。募资能力和资本市场经验持续得到美国本土行业认可。
Our B2B business continues to grow. In the second quarter, we added 26 new companies to a total of 364 ESOP clients, a year-over-year growth rate of 68%. We provide a comprehensive ESOP services from plan design to digital management, and have become the go-to choice for many startups and public companies listed in PRC, Hong Kong, and U.S. In terms of investment banking business, we underwrote 11 U.S. and Hong Kong IPOs in the second quarter, in which we were the lead bank in three U.S. IPOs. According to Wind Information, we ranked number three in number of deals underwrote for the first half of this year, and number one globally for the second quarter.
现请CFO John跟各位汇报一下财务细节。
Now, I would like to invite our CFO, John, to go over our financials.
Thanks, Tianhua and Aaron. Let me go through our financial performance for the second quarter. All numbers are in U.S. dollar. Total revenue were $53.5 million this quarter, a decrease of 11% year-over-year as market backdrop, particularly the U.S. market, was still choppy, which slowed down trading and margin activities. On a sequential basis, we managed to offset the slowdown in commission with more corporate service revenues, such as underwriting and ESOP services. Total revenue grew 2% on a quarter-over-quarter basis. Cash equity take rate was 6.5 basis points this quarter, slightly better than 6.3 basis points of last quarter and six basis points in the same quarter last year. Our pricing strategy has been consistent. The difference in take rate are primarily due to changing share price.
As for U.S. equities, we charge by number of shares, not trading volume. Now on the cost. Interest expense was $3.5 million, a decrease of 27% from the same quarter of last year, primarily due to more interest expense savings from U.S. Self-clearing. Execution and clearing expense were $3.9 million, decreased by 41% from same period last year. Since we started self-clearing, clearing expense as a percentage of commission have come down from over 20% a year ago to under 5% this quarter for both U.S. Cash equities and options. We expect further reduction in clearing expense when we start self-clearing Hong Kong equities.
As of right now, we are paying about 50% of our Hong Kong commission as clearing expense. Employee compensation increased 25% year-over-year to $25.6 million this quarter as we added headcount during last year to support our global expansion. In line with the headcount increase, occupancy expense increased 69% to $2.5 million, but the general and administrative expense decreased 15% year-over-year to $4.3 million due to one-off professional service fee incurred last year. Marketing expense were $8.4 million this quarter, decreased 65% year-over-year. We focus on quality of new users. Don't think current market condition is suitable for major marketing campaign as we keep a close eye on CAC and payback. We will dynamically adjust our marketing strategy based on market environment.
Communication and market data expense were $7.2 million, an increase of 40% from a year ago due to rapid user growth and expanded market data coverage. Total operating costs were $51 million, decreased 17% from the same quarter of last year. As a result, we narrowed our GAAP loss to $0.9 million from a loss of $21.5 million in the same quarter last year. Non-GAAP net income turned positive to $3.5 million versus a non-GAAP net loss of $4.4 million last year. Now I have concluded our presentation. Operator, please open the line for Q&A. Thanks.
Thank you. To ask a question, please press star one one on your telephone. Please stand by while we compile the question-and-answer roster. Once again, to ask a question, please press star one one on your telephone. Our first question comes from Han Pu from CICC. Please ask your question.
Uh, [Foreign Language]
More than 60% of our total newly acquired clients in the second quarter coming from Singapore. The average net asset inflows of our new funded clients in Singapore exceeded $9,000, while the average CAC decreased sequentially. Solidifies the, you know, our leading position in both market share and client quality.
Uh, [Foreign Language]
Okay. In the second quarter, the average CAC in Singapore was around $215. If we less the branding expense, the average CAC will just go down to $156. Meanwhile, we launched our services in Australia in the fourth quarter, right? When we enter a new market similar to what we saw in Singapore, we do spend more branding to, you know, branding costs to promote our company. Therefore, the average CAC in Australia and New Zealand is still relatively high, which brings the total average CAC to about $300 in the second quarter, decreased about 10% on a quarter-over-quarter basis. While the market sentiment was weak during the first half year and investors preferred to stay on the sidelines.
Under this kind of circumstance, we are very prudent with the marketing spending. We keep a very close eye on CAC and payback period, you know, to make sure we can have a very healthy business model, and we will just be very dynamic to adjust our marketing strategy.
Thanks, management. That's very helpful.
Thank you for your question. Our next question comes from the line of Cindy Wang from China Renaissance. Cindy, please ask your question. Cindy line has disconnected. Once again, if you wish to ask a question, please press star one one. Our next question comes from the line of Judy Zhang from Citi. Judy, please ask your question.
Uh, [Foreign Language]
Okay. In regards to our progress in Hong Kong. We had some delays earlier this year with COVID. Now I think everything is progressing, you know, on the track. So far we are upgrading the trading infrastructures, for example, getting more direct lines, expand our server, doing testing with the exchange, and back test all the book and records using our own system. So far I think everything is on the right track, and hopefully we can, you know, have a soft launch in the near future. And also recently we have obtained the type four and five license from SFC, which allows us to create more content for users in our online communities.
you know, we will apply for more license, you know, down the road, so we can provide more value-added service to our Hong Kong users. Okay. Tianhua.
券商是一个具有贝塔效应的行业。美联储的加息对于券商业务来讲是一把双刃剑。从积极的方面来说，随着整个公司用户体量和资金规模的逐渐提高，加息可以使得我们获得更多的利息收入。但从另外一方面讲，我们也可以看到，流动性紧缩预计对市场的活跃度、交易量和IPO发行可能会产生一定的负面影响。那从老虎的这个战略上来说，未来我们会在产品优化、用户教育等方面投入更多的精力，帮助我们用户选择更合理的投资策略来度过市场波动，增强用户粘性。那同时我们也会利用这段周期来尽快完善香港交易的基础设施，使得在未来市场回暖的时候，我们能够给用户提供更好服务。谢谢。
Okay. For the second question about the rate hike. You see the broker-dealer industry has a very strong beta effect. We think the Fed tightening will have mixed impact on our business and the whole industry. On the bright side we can of course generate more interest income from the increased rates cycle, especially with our increased client base and the self-clearing efficiency. While on the other side, to a certain extent the liquidity tightening will have negative impact on the capital market activity and transaction volume as well as you know the IPO issuance. To neutralize the downside. Strategically speaking we will keep concentrating on investor education and product optimization and consequently to help our clients to better navigate market turmoil and enhance client engagement. In addition we will keep upgrading the infrastructure in Hong Kong so that we can provide better services to our clients when the market recovers. Thank you.
All right, thank you. Our next question comes from the line of Cindy Wang from China Renaissance. Please ask your question, Cindy.
谢谢管理层给我这个提问的机会。不好意思，我刚刚线路断掉了。那我这边有两个问题想请教。第一个是可否请管理层跟我们分享一下在澳新市场目前的一个经营成效，那今年下半年在获客以及产品上面会有什么样的打法？那第二个问题我想请问一下，就是说本季度的一个新入金用户，可否帮我们做一个breakdown？那刚才有说到就是新加坡的这个市场是占了差不多60%，那其他的像中国，然后美国跟澳洲这个市场上，那大概新入金用户的一个分布是怎么样？那以及下半年的一个预计的一个入金用户的一个分布情形，可否大概跟我们说一下一个状况。那我这边翻译一下。
Thanks for management to give me the opportunity to ask questions. So I have two questions here. First question is could you please provide a business update for Australia and New Zealand market in second quarter of 2022? And what's the marketing strategy you will adopt and any new products will be launched in these two markets in second half of this year? Second question is regarding to the new paying client, could you provide a breakdown by geographies? And how do you expect the distribution of the new paying clients in the second half of this year? Thank you.
好的，谢谢。我们二季度的新入金用户中有10%以上来自于澳新地区。我们积极地推动产品的本地化，凭借一站式多元化的投资分析功能和流畅的交易体验。我们的Tiger Trade App在当地的苹果应用市场最高排名升至第三十一位，增幅已经跻身当地科技零售型券商的第一梯队。我们也赞助了当地的橄榄球队，更加融入本土市场。第二季度，老虎澳大利亚新增注册用人数环比增长80%以上，交易量环比翻倍，市场信任度也得到进一步的提升。我们期待通过未来几个季度的运营，能够有更多的澳新用户来到老虎这个平台，取得更好的国际化的成绩。谢谢。
Okay, I'll translate. In general, 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 you know sponsoring the local sports team just to localize our products and services by adding more features that will give the local investors more control over the investment. In the meantime, still you know keeping the user experience simple and efficient. In addition the ranking of the you know Tiger Trade app rose to number 31 at the end of the second quarter which is highest among the 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-tuning our local marketing strategy and localization, and we are confident that there will be more local users you know coming on board of Tiger platform.
关于第二个问题，本季度整个公司持续推进我们的国际化的业务，我们的新入金用户中70%以上来自于海外，大概的breakdown是这样子的，60%多来自于新加坡，10%以上来自于澳大利亚和新西兰，20%以上来自于中国大陆。我们预计今年下半年的新入金用户依然是以海外为主。那随着澳新地区市场的不断拓展，我们期待澳新地区的新入金用户占比在下半年会逐渐提升。谢谢。
Second question about our new clients acquired. Basically our internationalization is progressing very well. In the second quarter over 70% of newly funded users were acquired from overseas markets, in which about 20% of funded accounts came from mainland China, more than 60% came from Singapore, and for the rest 10%-20% were from Australia and New Zealand. We do expect the proportion of new clients acquired in Australia and Singapore will increase in the second half year of 2022, you know alongside with our local development and expansion. Thank you, Cindy.
Thank you. Very clear.
Thank you. There are no further questions at this time. I'll now turn the conference back to Mr. Aaron Lee for closing remarks.
Okay, thank you operator. I would like to thank everyone for joining our call today. I'm now closing the call on behalf of the management team here at Tiger. We do appreciate your participation in today's call. If you have any further questions, please reach out to our investor relations team. This concludes the call and thank you very much for your time.
Thank you.
Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.