Virtu Financial, Inc. · NYSE:VIRT
Virtu Financial — Q2 2024 Earnings Presentation
22 slides from Virtu Financial's earnings presentation, Jul 18, 2024
Slide 1: Quarter 2024 Earnings Supplement
Presentation Title in Second Title Case Quarter 2024 Earnings Supplement Presentation subtitle in sentence case Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2024 Virtu Financial.
Slide 2: Performance Highlights
Performance Highlights 2Q 2024 Key Financials Commentary & Highlights Normalized • Delivered strong performance in both Adj. NTI1 Adj. NTI/day1,2 Adj. EPS1 customer and non-customer market $385M $6.1M $0.83 making Adj. EBITDA Debt to LTM • Continued progress in our organic growth Adj. EBITDA1 Margin
Slide 3: Key Financial Metrics
Key Financial Metrics Annual Quarterly Comparison FY FY FY FY YTD FY 2023 FY 2024 2Q 2024 v ($M) 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q 1Q'24 2Q'23 Total Adjusted Net Trading Income 1,2 $2,271 $1,910 $1,468 $1,211 $752 $279 $298 $261 $367 $385 + 2% + 36% Daily Average Adj. NTI 1,2 $9.0 $7.6 $5.8 $4
Slide 4: Major Market Metrics
Major Market Metrics Annual Quarterly Comparison FY FY FY FY YTD FY 2023 FY 2024 2Q 2024 v 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q 1Q'24 2Q'23 Market Metrics (Average Daily) Volume Metrics US Equity Consolidated Volume (M shares) 10,924 11,404 11,874 11,053 11,849 10,756 10,512 11,168 11,760 11,935
Slide 5: Organic Business Growth
Organic Business Growth Annual Trailing 5 Quarters $1,003K $834K per day $641K per day $670K $611K per day $540K per day $494K $489K per day per day per day $399K per day $424K $255K per day per day 1 $161K per day Daily Average Adj. NTI from per day Organic Growth Initiatives FY'18 FY'19 FY'20 FY'2
Slide 6: Analysis at Various Levels of ANTI
Analysis at Various Levels of ANTI Target Available ($M) Full Year Cash OpEx Adj. EBITDA 1,3 Adj. EPS for Buybacks ANTI/Day1 Adj. NTI 1 Total 1,2 EBITDA1,2 Margin 1,2 Annually4 $5.00 M $1,255 $655 $600 48% $2.07 $50-$120 YTD 2Q 2024 share $6.00 M $1,506 $663 $843 56% $3.21 $120-$160 buybacks ($67M)
Slide 7: Capital Management
Capital Management We continue to return capital to shareholders through dividends and share repurchases Steady Payout in All Environments Share Buybacks2,3 Dividends declared per share and Adjusted EPS1, quarterly Shares outstanding and share repurchases, quarterly $1.44 Weighted 10.0 Avg. Share 19
Slide 8: Update on Share Buybacks
Update on Share Buybacks Cumulative Shares Repurchased to Date 1,2 60M 17.4% 17.4% 18.1% 18.2% 20% 16.2% 50M 14.8% 12.9% 13.6% 43.6M 45.6M 47.0M 47.3M 15% 40M 11.8% 41.2M 9.1% 10.0% 36.3M 38.5M 30M 30.3M 32.3M 10% 25.1M 26.8M 20M 5.2% 5.6% 1.0% 2.7% 12.5M 16.1M 5% 10M 0.8% 7.1M 1.4M 3.7M - 0% Cumula
Slide 9: Operating Expenses and Long-Term Debt
Operating Expenses and Long-Term Debt Disciplined focus on expense management Operating Expense Results Annual Quarterly Adjusted Operating Expenses FY FY FY FY FY YTD 2023 2023 2023 2024 2024 ($M) 20192 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q Adj. Cash Compensation1 $230 $321 $314 $315 $320 $170 $7
Slide 10: GAAP Reconciliations and Other Information
GAAP Reconciliations and Other Information
Slide 11: Share Count Roll Forward
Share Count Roll Forward 2021 2022 2023 Grand (M shares) 4Q 2020 1Q 2024 2Q 2024 Total Total Total Total Beginning of Period Shares 197.1 195.6 186.1 171.7 162.7 162.7 197.1 Shares Repurchased - 1.44 - 14.71 - 16.34 - 12.48 - 1.96 - 1.38 - 48.31 Net Shares Issued - 0.05 + 5.16 + 1.97 + 3.53 + 1.93 +
Slide 12: GAAP Balance Sheet
GAAP Balance Sheet Assets As of: ($M) 12/31/19 12/31/20 12/31/21 12/31/22 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 Cash and cash equivalents $732 $890 $1,071 $982 $699 $689 $820 $400 $685 Cash & securities segregated under regulations & other 41 117 49 57 47 38 35 30 32 Securities borrowed 1,929 1,4
Slide 13: GAAP Income Statement
GAAP Income Statement Annual Quarterly Income Statement FY FY FY FY FY FY YTD FY 2023 FY 2024 ($mm) 2018 20191 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q Trading income, net $1,267 $912 $2,493 $2,105 $1,629 $1,301 $834 $306 $316 $267 $408 $426 Commissions, net and technology services 184 499 601 614 53
Slide 14: Adjusted EBITDA & Normalized Adjusted EPS
Adjusted EBITDA & Normalized Adjusted EPS (excludes ITG prior to 3/1/19) Annual Quarterly Income Statement FY FY FY FY FY FY YTD FY 2023 FY 2024 ($mm) 2018 20191 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q Adjusted Net Trading Income $1,020 $975 $2,271 $1,910 $1,468 $1,211 $752 $279 $298 $261 $367 $385
Slide 15: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Operating Segments Annual Quarterly Adjusted Net Trading Income Reconciliation FY FY FY FY FY FY YTD 2023 2023 2023 2024 2024 ($M) 2018 2019 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q Trading income, net $1,267 $912 $2,493 $2,105 $1,629 $1,301 $834 $306 $316 $
Slide 16: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Organic Growth Initiatives Annual Quarterly Organic Growth Initiatives FY FY FY FY FY FY YTD 2023 2023 2023 2024 2024 Adjusted Net Trading Income Reconciliation ($M) 2018 2019 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q Trading income, net $36 $65 $241 $144 $18
Slide 17: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation Annual Quarterly Adjusted Operating Expenses Reconciliation FY FY FY FY YTD FY 2023 FY 2024 ($M) 2020 2021 2022 2023 2024 2Q 3Q 4Q 1Q 2Q Employee compensation and payroll taxes $394 $376 $391 $394 $207 $96 $97 $98 $101 $106 (-) Cash Compensation Adjustments
Slide 18: Disclaimer
Disclaimer Cautionary Statement Regarding Forward Looking Statements This presentation may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s
Slide 19: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 2 Performance Highlights 1. This reflects a non-GAAP measure. Please refer to slides at the end of this presentation for reconciliation to the equivalent GAAP measure. Prior period reconciliations available https://ir.vi
Slide 20: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 6 Analysis at Various Levels of ANTI 1. This reflects a non-GAAP measure. Ranges shown for illustrative purposes only and are not meant to reflect actual performance and therefore no quantitative reconciliation of illust
Slide 21: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 8 Update on Share Buybacks 1. Shares repurchased calculated on a settlement date basis. 2. Percentage of Shares Outstanding is calculated net of share issuances, and is calculated compared to shares outstanding on 9/30/2
Slide 22: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 14 Adjusted EBITDA & Normalized Adjusted EPS 1. ITG revenues and expenses included in financials beginning on March 1, 2019 close date. 2. EBITDA Margin is calculated as EBITDA divided by Adjusted Net Trading Income. 3.