Slide 1: BGC Group, Inc. Earnings Presentation Q4 2023
BGC GROUP, INC. NASDAQ: BGC E A R N I N G S P R E S E N TAT I O N Q 4 2 0 2 3
Slide 2: Disclaimer
2 DISCLAIMER DISCUSSION OF FORWARD-LOOKING STATEMENTS ABOUT BGC Statements in this document regarding BGC that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statem
Slide 3: Investment Highlights
3 INVESTMENT HIGHLIGHTS STRONG BROAD-BASED GROWTH HIGHER PROFITABILITY & EXPANDING MARGINS ▪ Record Q4 revenue, up 18% yr/yr1 ▪ Profitability improved across all GAAP and Adjusted Earnings metrics in Q4 2023 ▪ Record FY revenue, up 13% yr/yr1 ▪ Q4 2023 Pre-tax Adjusted Earnings margin of ▪ Revenue g
Slide 4: Q4 2023 & FY 2023 Performance
4 Q4 2023 & FY 2023 PERFORMANCE Highlights of Consolidated Results BUSINESS HIGHLIGHTS Q4 2023 Q4 2022 Change FY 2023 FY 2022 Change (USD millions, except per share data) ▪ Revenue growth accelerated every Revenues $516.8 $436.5 18.4% $2,025.4 $1,795.3 12.8% quarter throughout the year GAAP income (
Slide 5: Revenue by Asset Class
5 REVENUE BY ASSET CLASS DATA, NETWORK & POST- TRADE AND OTHER2 Revenue By Asset Class Q4 2023 Q4 2022 Change FY 2023 FY 2022 Change (USD millions) 11% RATES EQUITIES Rates $155.8 $123.6 26.1% $610.5 $549.5 11.1% 11% 30% Q4 Energy & Commodities 104.7 73.6 42.3% 386.2 291.7 32.4% CREDIT 13% 2023 FX 7
Slide 6: Global & Diversified Business Model
6 GLOBAL & DIVERSIFIED BUSINESS MODEL HISTORIC REVENUE BY ASSET CLASS (Percentage of Total Revenues) DIVERSIFICATION $2.0bn DATA, NETWORK & POST-TRADE AND OTHER REVENUES 10% DRIVING GROWTH EQUITIES 12% $1.5bn CREDIT 14% Eclipsed $2 billion in full year $1.0bn 6% 10% FX 16% $2bn revenue for the first
Slide 7: Revenue by Geography & Currency
7 REVENUE BY GEOGRAPHY & CURRENCY REVENUE BY CURRENCY (USD Equivalent1) Q4 2023 AMERICAS EMEA APAC GLOBAL $186mm $265mm $66mm REVENUE +22% yr/yr +20% yr/yr +3% yr/yr Q4 2023 FY 2023 (35.9% of total) (51.2% of total) (12.9% of total) $327mm $1,260mm 63.4% 62.2% $98mm $407mm 18.9% 20.1% $32mm $132mm 6
Slide 8: Front Office Productivity Continues to Accelerate
8 FRONT OFFICE PRODUCTIVITY CONTINUES TO ACCELERATE FRONT OFFICE HEADCOUNT AND PRODUCTIVITY Period–end Front Office Headcount $958 FY Front Office Productivity (in USD 000s)1 Record FY front office $958k productivity, 11% growth yr/yr $811 $736 $681 $623 2,573 2,454 Consecutive year of front office
Slide 9: Strong Margin Expansion & EPS Growth
9 STRONG MARGIN EXPANSION & EPS GROWTH PRE-TAX ADJUSTED EARNINGS MARGIN EXPANSION POST-TAX ADJUSTED EARNINGS & ADJUSTED EPS Pre-tax Adjusted Earnings Post-tax Adjusted Earnings Pre-tax Adjusted Earnings Margin Adjusted EPS $0.82 21.9% 20.8% 18.7% $0.69 $443mm $0.65 17.0% $411mm $0.57 $377mm $373mm $
Slide 10: Fenics Performance
10 FENICS PERFORMANCE Q4 2023 FENICS REVENUE EXCEEDED $500 MILLION FOR THE FIRST TIME IN 2023 Data, Network & $131mm Post-trade and Other1 $109mm $21mm 23% Rates $15mm 26% 36% Equities 1% Q4 22% $94mm $110mm 2023 $522mm 21% 19% $401mm Q4 2022 Q4 2023 Credit FX 14% Fenics Markets Fenics Growth Platfo
Slide 11: FMX Overview Updates
11 OVERVIEW UPDATES Electronic U.S. Treasury, Rates Futures and Spot FX platform Received CFTC approval for FMX to operate an exchange for U.S. interest rate futures products in Jan. 2024 Fenics UST is the second largest and fastest growing U.S. Treasury marketplace globally Plan to discuss strategi
Slide 12: Fenics UST Performance Highlights and Market Share
12 PERFORMANCE HIGHLIGHTS U.S. TREASURY MARKET SHARE1 71% Revenue growth in Q4 2023 26% 25% 23% 21% 26% Record market share1 in Q4 2023 20% Estimated client cost savings in FY 2023 and $493 million $119mm since January 20192 4Q22 1Q23 2Q23 3Q23 4Q23 FENICS UST GROWTH VS. COMPETITORS Nasdaq Dealerweb
Slide 13: Data, Network & Post-Trade Exceeded $100mm Revenue
13 DATA, NETWORK & POST-TRADE EXCEEDED $100MM REVENUE IN 2023 DATA, NETWORK & POST-TRADE $30mm +18% Provider and generator of data across global financial and commodity markets, supported by Q4 2023 Revenue Growth yr/yr BGC’s deep wholesale liquidity pools DATA 30% Aggregate contract value growth in
Slide 14: Q1 2024 Outlook
14 Q1 2024 OUTLOOK OUTLOOK Guidance Actual Metric (USD million) Q1 2024 Q1 2023 Revenues $560 – $610 $532.9 Pre-tax Adjusted Earnings $126 – $144 $124.6 BGC expects to update its quarterly outlook towards the end of March 2024. 14 14
Slide 15: GAAP Financial Results
GAAP FINANCIAL RESULTS
Slide 16: Balance Sheet
16 BALANCE SHEET BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) December 31, December 31, December 31, December 31, 2023 2022 2023 2022 Assets Liabilities, Redeemable Partnership Interest, and Equity Cash and ca
Slide 17: Income Statement
17 INCOME STATEMENT BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Three Months Ended Dec 31, Full Year Ended Dec 31, Three Months Ended Dec 31, Full Year Ended Dec 31, 2023 2022 2023 2022 2023 2022 2023 2022 Revenues: O
Slide 18: Appendix
APPENDIX
Slide 19: BGC's Fully Diluted Weighted-Average Share Count Summary
19 BGC’S FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT SUMMARY FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT FOR ADJUSTED EARNINGS (MILLIONS) Fully Diluted Q4 2023 Fully Diluted Weighted-Average Share Count Summary Weighted- Ownership (%) For Adjusted Earnings Average Shares 554 (millions) PUBLIC 330.1 67
Slide 20: Strongly Capitalized & Investment Grade Credit Profile
20 STRONGLY CAPITALIZED & INVESTMENT GRADE CREDIT PROFILE BGC Group, Inc. As of 12/31/2023 Cash and cash equivalents $655,641 INVESTMENT GRADE CREDIT RATING Financial instruments owned, at fair value 45,792 Total Liquidity $701,433 ▪ Investment Grade Credit Rated: • Fitch: BBB- (Outlook: Stable) Uns
Slide 21: BGC Corporate Conversion Early Impact
21 BGC CORPORATE CONVERSION EARLY IMPACT OVERVIEW BGC STOCK TRADING VOLUME1 AVERAGE DAILY VOLUME AVERAGE DOLLAR VALUE TRADED ▪ BGC completed its corporate conversion to a Full C-Corporation, changing its name to BGC Group, Inc. and ticker symbol to BGC $12.7mm COST SAVINGS & OPERATIONAL EFFICIENCIES
Slide 22: Index Multiples and Revenue Comparison
22 INDEX MULTIPLES AND REVENUE COMPARISON BGC TRADES AT A LOWER P/E MULTIPLE THAN COMPARATIVE INDICES, DESPITE REVENUE GROWTH OUTPERFORMING INDEX MEDIANS P/E MULTIPLE VS. 2023 MEDIAN REVENUE GROWTH P/E MULTIPLE AND GROWTH COMPARISON 40.0x 2023 P/E Median Rev. Multiple Growth (%) 35.0x (FY 2023) Nasd
Slide 23: Fenics Ecosystem
23 FENICS ECOSYSTEM DATA, NETWORK & RATES CREDIT FX EQUITIES POST-TRADE KEY PRODUCTS: KEY PRODUCTS: KEY PRODUCTS: • Interest Rate Derivatives • Investment Grade Bonds (IG) • FX Spot • EGBs • High Yield Bonds (HY) • FX Options (Fenics Markets associated • GILTs • Sovereign Credit • Asian / LatAm NDFs
Slide 24: BGC Revenue Correlation & Industry Volumes
24 BGC REVENUE CORRELATION & INDUSTRY VOLUMES BGC’S ASSET CLASS REVENUES ARE GENERALLY CORRELATED TO RELEVANT INDUSTRY SECONDARY MARKET TRADING VOLUMES FY 2023 VS FY 2022 Brokerage revenues are driven by secondary market trading volumes in the ASSET CLASS REVENUE TO INDUSTRY VOLUME CORRELATION1 INDU
Slide 25: Shareholder Value Creation
25 SHAREHOLDER VALUE CREATION BGC HAS A STRONG HISTORY OF CREATING VALUE FOR SHAREHOLDERS THROUGH ORGANIC GROWTH, ACQUISITIONS & INVESTMENTS IN TECHNOLOGY 1999 – eSpeed, leading electronic 2023 – Completed UST platform, IPOs conversion to Full C-Corporation5 2004 – Cantor forms BGC Partners, separat
Slide 26: Non-GAAP Definitions and Reconciliation Tables
NON-GAAP DEFINITIONS AND RECONCILIATION TABLES
Slide 27: Reconciliation of GAAP to Adjusted Earnings
27 RECONCILIATION OF GAAP TO ADJUSTED EARNINGS RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES TO ADJUSTED EARNINGS & GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Dec 31, Full Year Ended Dec 31, Three Mo
Slide 28: Reconciliation of GAAP to Adjusted Earnings Footnotes
28 RECONCILIATION OF GAAP TO ADJUSTED EARNINGS FOOTNOTES FOOTNOTES (1) The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as follows (in thousands): Three Months Ended Dec 31, Full Year Ended Dec 31, 2023 2022 2023 2022 Issuance of com
Slide 29: Other Select Financial Data
29 OTHER SELECT FINANCIAL DATA RECONCILIATION OF GAAP NET INCOME (LOSS) AVAILABLE TO COMMON FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT STOCKHOLDERS TO ADJUSTED EBITDA (IN THOUSANDS) (UNAUDITED) (IN THOUSANDS) (UNAUDITED) Three Months Ended Dec 31, Full Year Ended Dec 31, Three Months Ended Dec 31, F
Slide 30: Differences Between Non-GAAP and GAAP Consolidated Results
30 DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS NON-GAAP FINANCIAL MEASURES The non-GAAP definitions below include references to certain equity-based compensation instruments, such as restricted stock awards and/or restricted stock units (“RSUs”), that the Company has issued and outsta
Slide 31: Differences Between Non-GAAP and GAAP Consolidated Results 1
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 31 (CONTINUED) The amounts of certain quarterly equity-based compensation charges are based upon the Company’s estimate of such expected charges during the annual period, as described further below under “Methodology for Calculating Adjusted
Slide 32: Differences Between Non-GAAP and GAAP Consolidated Results 2
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 32 (CONTINUED) METHODOLOGY FOR CALCULATING ADJUSTED EARNINGS TAXES Although Adjusted Earnings are calculated on a pre-tax basis, BGC also reports post-tax Adjusted Earnings to fully diluted shareholders. The Company defines post-tax Adjusted
Slide 33: Differences Between Non-GAAP and GAAP Consolidated Results 3
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 33 (CONTINUED) MANAGEMENT RATIONALE FOR USING ADJUSTED EARNINGS BGC’s calculation of Adjusted Earnings excludes the items discussed above because they are either non-cash in nature, because the anticipated benefits from the expenditures are
Slide 34: Differences Between Non-GAAP and GAAP Consolidated Results 4
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 34 (CONTINUED) TIMING OF OUTLOOK FOR CERTAIN GAAP AND NON-GAAP ITEMS BGC anticipates providing forward-looking guidance for GAAP revenues and for certain non-GAAP measures from time to time. However, the Company does not anticipate providing
Slide 35: Media and Investor Contacts
35 35 Media Contact: Jason Angrisani +1 212-915-1224 Investor Contact: ir.bgcg.com Jason Chryssicas twitter.com/bgcgroupinc +1 212-610-2426 linkedin.com/company/bgc_group