Slide 1: BGC Group, Inc. Earnings Presentation Q3 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 3 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 ▪ Profitability improved across all GAAP and ▪ BGC revenue up 16% yr/yr in Q3 2023 Adjusted Earnings metrics ▪ Revenue improved 11% yr/yr YTD Q3 2023. ▪ Pre-tax Adjusted Earnings margin of 21.1% ▪ Revenue grow
Slide 4: Q3 2023 Performance
4 Q3 2023 PERFORMANCE Highlights of Consolidated Results BUSINESS HIGHLIGHTS Q3 2023 Q3 2022 Change (USD millions, except per share data) Revenue: Strong broad-based growth Revenues $482.7 $416.6 15.9% ▪ 15.9% yr/yr growth ▪ Growth across all asset classes & geographies GAAP income (loss) from opera
Slide 5: Revenue by Asset Class
5 REVENUE BY ASSET CLASS Revenue By Asset Class Q3 2023 Q3 2022 Change DIVERSIFIED BUSINESS MODEL ACROSS FINANCIAL (USD millions) MARKETS AND ENERGY & COMMODITIES PRODUCTS Rates $145.7 $130.0 12.1% DATA, NETWORK FX 79.8 73.5 8.6% & POST-TRADE AND OTHER2 Credit 63.7 58.2 9.6% 10% EQUITIES RATES Energ
Slide 6: Revenue by Geography & Currency
6 REVENUE BY GEOGRAPHY & CURRENCY Q3 2023 GLOBAL REVENUE REVENUE BY CURRENCY (USD Equivalent1) EMEA Q3 2023 $241mm $296mm AMERICAS +17% yr/yr APAC 61.4% (50% of total) $172mm $70mm $98mm +19% yr/yr +6% yr/yr (36% of total) (14% of total) 20.2% $36mm 7.5% $53mm OTHER 11.0% TOTAL $483mm 1. GBP to USD
Slide 7: Return of Trading Activity
7 RETURN OF TRADING ACTIVITY U.S.TREASURY NET POSITIONS1 U.S. CORPORATE BOND NET POSITIONS2 $200bn $650mm $15bn $350mm Net Dealer BGC Credit Peak Interest Rates: July Fed Funds rises Positions Revenue 2019 (2009-2019 period) from 0% to Net Dealer 5.25-5.50% Positions $150bn Highest Interest $600mm M
Slide 8: Front Office Productivity Continues to Grow
8 FRONT OFFICE PRODUCTIVITY CONTINUES TO GROW FRONT OFFICE HEADCOUNT AND PRODUCTIVITY (Productivity in USD 000s)1 Period–end Front Office Headcount $935 LTM Front Office Productivity Record LTM front office $882 $935k productivity, 10% growth yr/yr $847 $825 $791 $753 $756 $747 $735 2,559 2,491 2,35
Slide 9: Fenics Represents BGC's Valuable Fintech Assets
9 FENICS REPRESENTS BGC’S VALUABLE FINTECH ASSETS +19% FENICS CONTINUES TO BECOME A LARGER PART OF BGC’S $125mm BUSINESS, REPRESENTING 26% OF Q3 2023 LTM REVENUE $106mm $18mm $125mm $13mm 26% Q3 2023 Revenue $107mm 22% $93mm +19% $500mm Growth yr/yr $401mm 14% Q3 2022 Q3 2023 13% Fenics Markets Feni
Slide 10: Overview FMX Opportunity
10 OVERVIEW FMX OPPORTUNITY1 Electronic U.S. Treasury, Rates Futures and Spot FX platform Fenics UST is the second largest & fastest growing U.S. Treasury 25% Market marketplace globally Share2 (Q3 2023) CME Market Cap: Partnership with LCH, largest clearer of interest rate derivatives $75bn3 To be
Slide 11: Fenics UST Performance Highlights and Market Share
11 PERFORMANCE HIGHLIGHTS U.S.TREASURY MARKET SHARE1 55% Revenue growth in Q3 2023 25% 23% 21% 25% Record market share1 Q3 2023 18% 20% Estimated client cost savings in LTM Q3 2023 and $459 $108mm million since January 20192 3Q22 4Q22 1Q23 2Q23 3Q23 Dealerweb PLATFORM UPDATES 9% Fenics UST 25% 26% A
Slide 12: Data, Network & Post-Trade: Recurring, Subscription Businesses
12 DATA, NETWORK & POST-TRADE: RECURRING, SUBSCRIPTION BUSINESSES DATA, NETWORK & POST-TRADE $28mm +17% Provider and generator of data across global financial and commodity markets, supported by Q3 2023 Revenue Growth yr/yr BGC’s deep wholesale liquidity pools DATA Revenue growth in Q3 2023; registe
Slide 13: Q4 2023 Outlook
13 Q4 2023 OUTLOOK OUTLOOK Guidance Actual Metric (USD million) Q4 2023 Q4 2022 Revenues $450 – $500 $436.5 Pre-tax Adjusted Earnings $88 – $108 $87.1 BGC expects to update its quarterly outlook towards the end of December 2023. 13 13
Slide 14: GAAP Financial Results
GAAP FINANCIAL RESULTS
Slide 15: Balance Sheet
15 BALANCE SHEET BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) September 30, December 31, September 30, December 31, 2023 2022 2023 2022 Assets Liabilities, Redeemable Partnership Interest, and Equity Cash and
Slide 16: Income Statement
16 INCOME STATEMENT BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Three Months Ended Sep 30, Nine Months Ended Sep 30, Three Months Ended Sep 30, Nine Months Ended Sep 30, 2023 2022 2023 2022 2023 2022 2023 2022 Revenue
Slide 17: Appendix
APPENDIDX
Slide 18: BGC's Fully Diluted Weighted-Average Share Count Summary
18 BGC’S FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT SUMMARY FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT (MILLIONS) Fully Diluted Q3 2023 Fully Diluted Weighted-Average Share Count Summary Weighted- Ownership (%) For Adjusted Earnings Average Shares (millions) 549 530 PUBLIC 329.2 67% Class A owned by
Slide 19: Strongly Capitalized & Investment Grade Credit Profile
19 STRONGLY CAPITALIZED & INVESTMENT GRADE CREDIT PROFILE BGC Group, Inc. As of 9/30/2023 INVESTMENT GRADE CREDIT RATING Cash and cash equivalents $559,587 ▪ Investment Grade Credit Rated: Financial instruments owned, at fair value 45,453 • Fitch: BBB- (Outlook: Stable) Total Liquidity $605,040 • S&
Slide 20: Fenics Ecosystem
20 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 21: BGC Revenue Correlation & Industry Volumes
21 BGC REVENUE CORRELATION & INDUSTRY VOLUMES BGC’S ASSET CLASS REVENUES ARE GENERALLY CORRELATED TO RELEVANT INDUSTRY SECONDARY MARKET TRADING VOLUMES Q3 2023 VS Q3 2022 Brokerage revenues are driven by secondary market trading volumes in the ASSET CLASS REVENUE TO INDUSTRY VOLUME CORRELATION1 INDU
Slide 22: Shareholder Value Creation
22 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 23: Non-GAAP Definitions and Reconciliation Tables
NON-GAAP DEFINITIONS AND RECONCILIATION TABLES
Slide 24: Reconciliation of GAAP to Adjusted Earnings
24 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 Sep 30, Three Months Ended Sep 30, 2023
Slide 25: Reconciliation of GAAP to Adjusted Earnings Footnotes
25 RECONCILIATION OF GAAP TO ADJUSTED EARNINGS FOOTNOTES FOOTNOTES (1) The components of equity-based compensation, dividend equivalents and allocations of net income to limited partnership units and FPUs are as follows (in thousands): Three Months Ended Sep 30, 2023 2022 Issuance of common stock an
Slide 26: Other Select Financial Data
26 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 Sep 30, Three Months Ended Sep 30, 2023 2022 2023 2022 GAAP
Slide 27: Differences Between Non-GAAP and GAAP Consolidated Results
27 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 28: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 28 (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 29: Methodology for Calculating Adjusted Earnings Taxes
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 29 (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 30: Management Rationale for Using Adjusted Earnings
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 30 (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 31: Timing of Outlook for Certain GAAP and Non-GAAP Items
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 31 (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 32: Media and Investor Contacts
32 32 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