Quantum FinTech Acquisition Corporation
Quantum FinTech Acquisition — SPAC Merger (February 2022)
27 slides from Quantum FinTech Acquisition's SPAC merger presentation, Feb 17, 2022
Slide 1: Empowering Traders to Claim Their Financial Edge
EMPOWERING TRADERS TO CLAIM THEIR FINANCIAL EDGE February 2022
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward - Looking Statements This communication contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 , as amended, that reflect TradeStation’s current views with respect to, among other things, the future oper
Slide 3: TradeStation At A Glance
TradeStation At A Glance 178,000 + Total Customer Accounts 36% Year - Over - Year Growth* 30 - Year History of Helping Self - Directed Traders and Investors Claim Their Financial Edge $12.3 Billion Total Customer Assets 33% Year - Over - Year Growth* Multi - Asset, Self - Clearing Brokerage Offering
Slide 4: Self-Directed Investor Market in the U.S. Growing at Mid-Teens Annual Rate
(1) Estimated 2020 market size based on industry reports. (2) “Active Traders” is defined as traders who make more than 10 trades per month. “Active Investors” is defined as individuals who trade roughly 3 – 10 trades per month. “Traditional Investors” is defined as long - term investors with infreq
Slide 5: TradeStation is Well-Positioned to Benefit from Growth Opportunities
Expanding Customer Base of Experienced and New Traders Strong Track Record of Account Growth Award - Winning Suite of Trader and Investor Products Differentiated Positioning in the Market 1 5 4 2 3 Well - Defined Growth Accelerators 4 TradeStation is Well - Positioned to Benefit from Growth Opportun
Slide 6: Award-Winning Suite of Trader and Investor Products
…t o s e l f - d i r e c t e d r e t a i l in v e s t o r s lookin g f o r si m p li c i t y a n d e a s e o f u s e F r o m high l y a c t i v e fu l l - t i m e t r a d er s r e q u iri n g ad v a n ced c h a r t i n g a n d t r a d i n g f u n c t i o n a li t y … T r a de S t a t i o n 1 0 D e s
Slide 7: Go-to platform for active individual traders looking for an edge
TradeStation is a go - to platform for active individual traders looking for an edge Newcomer growth accelerated during COVID Average age : 49 years old 32 - month average account tenure $707,000 average net worth $37,000 average balance at TradeStation Heavy desktop platform use Baby Boome r / G e
Slide 8: Capturing traders from legacy and challenger brokers
TradeStation seeks to capture traders and active investors from legacy and challenger brokers and can be a bridge to the traditional asset classes for crypto traders 7 Note: This page contains forward - looking statements about assumptions, plans, estimates and beliefs concerning marketing opportuni
Slide 9: Average Total Customer Accounts
Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q2 FYE 3/31/22 Q3 70 73 76 83 79 88 92 95 98 10 2 113 10 3 1 0 4 122 1 2 9 138 1 5 2 170 (2) 1 6 0 Average Total Customer Accounts (1) (in thousands) (1) "Average Total Customer Accounts” for each fiscal quarter is calculated by adding the ending balance of total cus
Slide 10: Digital Marketing Growth Accelerators
Note: This page contains forward - looking statementsabout assumptions, plans, estimates and beliefs concerning marketing opportunities, successful marketing strategies, and the Company’sability to achieve them, which contain numerous risks and uncertainties. Actual resultsmay differ materially from
Slide 11: Gross Brokerage Revenue
(1) Gross Brokerage Revenue includes (a) commissions and fees received in respect of equities, options, futures and cryptocurrency customer accounts and transactions, which includes amounts charged to, and collected from, customers that are payable to third parties (such as futures exchange fees), a
Slide 12: Robust Crypto Offering Poised for Growth
Native Integration with TradeStation New Cryptocurrencies Further Expansion to Non - U.S. Customers Crypto Accounts Have Grown Rapidly (1) Planned Initiatives to Further Accelerate Growth: Current Crypto Offering: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, USDC Stable Coin Support for Self - Directe
Slide 13: Strategic Alliances and Third-Party Related Revenue
Note: “Strategic Alliances” are business arrangements with third parties created by commercial contracts, and are not partnerships, joint ventures or any similar type of agency relationship or business combination. “Third - Party Related Revenue” refers to revenues derived from various types of thir
Slide 14: Recent Operating and Financial Highlights
RECENT OPERATING AND FINANCIAL HIGHLIGHTS Three Months and Nine Months ended December 31, 2021
Slide 15: Strong Year-over-Year Growth in Customer Base
Strong year - over - year growth (1) in customer base Customer Metrics Total Customer Accounts (2) of 178.9 thousand as of December 31, 2021, representing 36.1% year - over - year growth ▪ Cryptocurrency accounts have grown to >9% of total accounts at Decemb e r 31, 20 21, fro m les s tha n 2% at De
Slide 16: DARTs Declined Versus Prior Year's Elevated Volume
DARTs Declined as Compared to Prior Year’s Elevated Equities Trading Volume DARTs Daily Average Revenue Trades (DARTs) of 214.7 thousand declined by 10.2% year over year ▪ Primarily related to reduced customer trading activity as compared to high trading levels in the prior - year period, which occu
Slide 17: Strong Account Growth Drove Increase in Revenue
Strong Account Growth Drove Increase in Revenue Total Revenue: Increased by 1.8% year over year ▪ Trading - related revenue increased by 4.0%, driven by account growth, offset by lower DARTs and revenue per trade ▪ Net interest income increased by 6.9% on increased margin and securities lending acti
Slide 18: Trading-Related Revenue Increased Despite Elevated Prior-Year Volume
Trading - Related Revenue Increased Despite Prior Year’s Elevated Equities Volume Trading - Related Revenue Increased by 4.0% year over year ▪ Account growth drove higher overall revenue growth ▪ Options, Futures and Crypto revenues increased ▪ Equities revenue declined on lower trading levels Incre
Slide 19: Net Interest Income Fueled by Margin Use and Securities Lending
$3.2 $3.1 $2.3 $2.3 $2.4 $2.5 $3.0 $3.1 $3.1 $3.2 $3.5 $3.3 $4.0 $3.5 $4.6 $1.4 $1.5 $1.3 $0 .4 $1.1 $10.6 $10.9 $10.7 $9 .3 $11 . 3 Net Interest Income ($, millions) Dec ‘20 Total Customer Cash Margin Lending Securites Lending Dec ‘21 Cr y pto Lend i ng Net Interest Income Net interest income incre
Slide 20: Expense Growth Reflects Strategic Growth Plan
Expense Growth Reflects TradeStation’s Strategic Growth Plan $4.3 $5 .4 $5 .7 $11 . 2 $22 .7 $17 . 7 $21 . 2 $21.2 $22 .7 $24.7 $7.8 $9 .1 $8 .6 $8 .4 $8 .2 $14 . 6 $13 . 6 $7.8 $8 .2 $5 .5 $5 .6 $5 .6 $5 .7 $5 .7 $5 0.0 $38 . 6 $5 4 . 7 $5 5.7 $6 9.5 Expe n ses Cost of Services Provided Inter e s t
Slide 21: Appendix
Appendix
Slide 22: Operating Metrics
Operating Metrics As of December 31, 2021 2020 Total Customer Accounts (1) (in thousands) 178.9 131.4 Total Customer Assets ( $ , bil l ions) $12.3 $9.3 Total Customer Cash ( $ , bil l ions) $3.0 $2.6 Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Daily Average Re
Slide 23: How TradeStation Generates Revenue
Trading - Related Revenue Includes brokerage commissions received on equities, futures and options trading; commissions received on cryptocurrency trading; services fees; other customer fees and charges; and payments for order flow Net Interest Income Includes net interest income from securities len
Slide 24: Condensed Income Statement (GAAP)
Condensed Income Statement (GAAP) (1) Other includes Communications, Professional Services, Occupancy and Equipment, and Other Expense (Income). Three months ended December 31, Nine Months Ended December 31, ( $ , thous a nds) 2021 2020 2021 2020 Trading - related revenue $41,466 $39,860 $121,334 $1
Slide 25: Indicative Sources and Uses
81.5% 12.6% 4.3% SPAC Public Shareholders SPAC Sponsor Shares Sources SPAC Trust Funds Third - Party PIPE Monex PIPE TradeStation Rollover Equity (Monex) Tota l Sourc es Indicative Sources and Uses ($mm) (3) Uses TradeStation Shareholder Rollover (Monex) Ca sh to Bala n c e She et / Prima ry Proceed
Slide 26: Marketing Impressions Definitions and Endnotes
“ Available Digital Marketing Impressions” is an estimate of the total number of Digital Marketing Impressions available to be purchased for a given period for TradeStation’s “Target Audience,” and is segmented by the types of campaigns TradeStation seeks to conduct (Search Engine, Social Media, and
Slide 27: Investor Relations Contact
EMPOWERING TRADERS TO CLAIM THEIR FINANCIAL EDGE Investor Relations Contact: ir@tradestation.com February 2022
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