Virtu Financial, Inc. · NYSE:VIRT
Virtu Financial — Q3 2024 Earnings Presentation
24 slides from Virtu Financial's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Earnings Supplement
Presentation Title in Third Quarter 2024 Title Case 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 3Q 2024 Key Financials Commentary & Highlights Normalized • Continued strong performance in market Adj. NTI1 Adj. NTI/day1,2 Adj. EPS1 making and VES amid mixed environment $388M $6.1M $0.82 • Virtu Execution Services poised for Adj. EBITDA Debt to LTM growth following technol
Slide 3: Key Financial Metrics
Key Financial Metrics Annual Quarterly Comparison FY FY FY FY YTD FY 2023 FY 2024 3Q 2024 v ($M) 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q 2Q'24 3Q'23 1,2 Total Adjusted Net Trading Income $2,271 $1,910 $1,468 $1,211 $1,140 $298 $261 $367 $385 $388 - 1% + 28% Daily Average Adj. NTI 1,2 $9.0 $7.6 $5.8
Slide 4: Major Market Metrics
Major Market Metrics Annual Quarterly Comparison FY FY FY FY YTD FY 2023 FY 2024 3Q 2024 v 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q 2Q'24 3Q'23 Market Metrics (Average Daily) Volume Metrics US Equity Consolidated Volume (M shares) 10,924 11,404 11,874 11,053 11,727 10,512 11,168 11,760 11,935 11,492
Slide 5: Organic Business Growth
Organic Business Growth Annual Trailing 5 Quarters $1,003K per day $765K $641K $611K per day $670K $632K per day $540K per day $494K $489K per day per day per day $423K per day per day $255K per day 1 $161K per day Daily Average Adj. NTI from per day Organic Growth Initiatives FY'18 FY'19 FY'20 FY'2
Slide 6: VES Global Financial Technology Platform
VES Global Financial Technology Platform Comprehensive client solutions across all stages of an order’s life cycle Workflow Broker Agnostic Data Management Analytics • Multi-Asset • Commission Management • Trade Automation • Transaction Cost Analytics • SaaS (White-Label / Outsourced Tech) • Connect
Slide 7: VES Awards & Accolades
VES Awards & Accolades Year Provider / Survey Distinction(s) 2024 Markets Media European • Best Equity E/OMS Markets Choice Awards Workflow Management 2023 The Trade EMS Survey • #1 Overall Performer • #1 Market Access • #1 Large Cap Platform Triton EMS has been 2022 The Trade EMS Survey • #1 Overal
Slide 8: Analysis at Various Levels of ANTI
Analysis at Various Levels of ANTI Target Available ($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 $659 $596 47% $2.05 $50-$120 YTD 3Q 2024 share $6.00 M $1,506 $673 $833 55% $3.16 $120-$160 buybacks ($115M)
Slide 9: 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 Weighted $1.44 10.0 198M Avg. Sha
Slide 10: Update on Share Buybacks
Update on Share Buybacks Cumulative Shares Repurchased to Date 1,2 18.5% 18.8% 60M 17.4% 17.4% 18.1% 20% 16.2% 50M 14.8% 12.9% 13.6% 45.6M 47.0M 48.7M 49.2M 15% 40M 11.8% 41.2M 43.6M 9.1% 10.0% 36.3M 38.5M 30M 30.3M 32.3M 10% 26.8M 20M 5.2% 5.6% 25.1M 1.0% 2.7% 12.5M 16.1M 5% 10M 0.8% 7.1M - 1.4M 3.
Slide 11: Operating Expenses and Long-Term Debt
Operating Expenses and Long-Term Debt Disciplined focus on expense management Operating Expense Results Annual Quarterly Adjusted Operating Expenses FY FY FY FY FY YTD 2023 2023 2024 2024 2024 ($M) 20192 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q 1 Adj. Cash Compensation $230 $321 $314 $315 $320 $259 $
Slide 12: GAAP Reconciliations and Other Information
GAAP Reconciliations and Other Information
Slide 13: Share Count Roll Forward
Share Count Roll Forward 2021 2022 2023 Grand (M shares) 4Q 2020 1Q 2024 2Q 2024 3Q 2024 Total Total Total Total Beginning of Period Shares 197.1 195.6 186.1 171.7 162.7 162.7 161.4 197.1 Shares Repurchased - 1.44 - 14.71 - 16.34 - 12.48 - 1.96 - 1.38 - 1.68 - 49.99 Net Shares Issued - 0.05 + 5.16 +
Slide 14: 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 9/30/24 Cash and cash equivalents $732 $890 $1,071 $982 $699 $689 $820 $400 $685 $701 Cash & securities segregated under regulations & other 41 117 49 57 47 38 35 30 32 37 Securities bo
Slide 15: GAAP Income Statement
GAAP Income Statement Annual Quarterly Income Statement FY FY FY FY FY YTD FY 2023 FY 2024 ($mm) 2019 1 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q Trading income, net $912 $2,493 $2,105 $1,629 $1,301 $1,278 $316 $267 $408 $426 $444 Commissions, net and technology services 499 601 614 530 456 376 110 11
Slide 16: Adjusted EBITDA & Normalized Adjusted EPS
Adjusted EBITDA & Normalized Adjusted EPS (excl ITG prior to Mar'19) Annual Quarterly Income Statement FY FY FY FY FY YTD FY 2023 FY 2024 ($mm) 2019 1 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q Adjusted Net Trading Income $975 $2,271 $1,910 $1,468 $1,211 $1,140 $298 $261 $367 $385 $388 Adj. EBITDA / Ad
Slide 17: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Operating Segments Annual Quarterly Adjusted Net Trading Income Reconciliation FY FY FY FY FY FY YTD 2023 2023 2024 2024 2024 ($M) 2018 2019 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q Trading income, net $1,267 $912 $2,493 $2,105 $1,629 $1,301 $1,278 $316 $267
Slide 18: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Organic Growth Initiatives Annual Quarterly Organic Growth Initiatives FY FY FY FY FY FY YTD 2023 2023 2024 2024 2024 Adjusted Net Trading Income Reconciliation ($M) 2018 2019 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q Trading income, net $36 $65 $241 $144 $18
Slide 19: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation Annual Quarterly Adjusted Operating Expenses Reconciliation FY FY FY FY YTD FY 2023 FY 2024 ($M) 2020 2021 2022 2023 2024 3Q 4Q 1Q 2Q 3Q Employee compensation and payroll taxes $394 $376 $391 $394 $314 $97 $98 $101 $106 $108 1 (-) Cash Compensation Adjustmen
Slide 20: 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 21: 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 22: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 8 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 23: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 10 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/
Slide 24: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 16 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.