Interactive Brokers Group, Inc. · NASDAQ:IBKR
Interactive Brokers — Q3 2021 Earnings Presentation
19 slides from Interactive Brokers's earnings presentation, Nov 9, 2021
Slide 1: Investor Presentation Third Quarter 2021
Investor Presentation Third Quarter 2021 November 9, 2021 Interactive Brokers, LLC
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements The following information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be
Slide 3: Financial Strength – Liquid and Growing
Financial Strength – Liquid and Growing As of September 30, 2021 Total Membership Interests 418.1 million Held by management 319.9 million 76.5% Public shares 98.2 million 23.5% Total Market Capitalization $26.1 billion Public float $6.1 billion Cash and Equivalents $2.8 billion Total Debt (0 long-t
Slide 4: Company Overview
Company Overview 1,535,900 +57% Client Accounts1 YoY1 Account Growth We Are a Highly Automated Electronic Broker $354B 2.6mil $10.0B We use our proprietary technology and international Client Equity1 DARTs1,3 Total Equity1 experience to offer low cost, seamless global access to multiple types of sec
Slide 5: The IBKR Advantage
The IBKR Advantage Versatile Platform Broad Product Offering ▪ Seamless electronic market access to stocks, options, futures, ▪ Access to multiple products in multiple currencies from a single forex, commodities, bonds, crypto1, mutual funds and ETFs Integrated Investment Management Account requires
Slide 6: Impact of Automation
Impact of Automation Automation allows IBKR to be one of the lowest cost processors in the industry Majority of senior management are software engineers, committed to automating as many processes as possible From account opening through the entire transaction lifecycle, our processes are automated,
Slide 7: Cost Comparison “Lowest Cost Broker”
Cost Comparison US Margin Loan Rates Comparison2 $ 25K $ 300K $ 1.5M $ 3.5M IBKR Continues to be the “Lowest Cost Broker”1 Interactive Brokers 1.59% 1.25% 1.01% 0.86% IBKR clients recognize that they can maximize E-Trade 8.45% 6.95% 5.45% 5.45% returns by minimizing their costs Fidelity 7.82% 6.57%
Slide 8: Automation and Focusing on the Client Lead to Growth
Automation and Focusing on the Client Lead to Growth 7-year compound annual growth rate 8
Slide 9: Broad, Global Addressable Market
Broad, Global Addressable Market • Interactive Brokers operates globally, in multiple currencies across multiple client segments, which significantly enhances our addressable market size. $254 Trillion • IBKR currently has customers in over 7.8 Billion World Population Global Financial 200 countries
Slide 10: IBKR Growth Continues
IBKR Growth Continues Multiple factors, including increased interest More accounts on our platform has led to in the financial markets and the growing more client assets held at IBKR. interconnectedness of investors worldwide, have propelled account growth. 10
Slide 11: IBKR Growth Continues
IBKR Growth Continues More accounts and client equity on our …as well as higher margin loans. This drives our superior, industry- highly automated platform mean higher leading profit margins. activity, as seen in increased DARTs... 1See reconciliation of non-GAAP measures at the end of this presenta
Slide 12: Diversified Client Base – by Client Type
Diversified Client Base – by Client Type As of September 30, 2021 Accounts Client Equity 25% Year to Date 30% Commissions 37% 1% 1.5 Million $354 Billion 2% 18% 63% 9% 7% 6% 9% $1,030 Million 17% 54% 12% Individuals Financial Advisors 10% Proprietary Trading Groups Hedge and Mutual Funds Introducing
Slide 13: Diversified Client Base – by Geography
Diversified Client Base – by Geography As of September 30, 2021 Accounts Client Equity Year to Date 34% Commissions 39% 39% 46% 1.5 Million $354 Billion 35% 45% 27% $1,030 Million 15% North America 20% Europe Asia-Pacific 13
Slide 14: Integrated Investment Management from One Account
Integrated Investment Management from One Account EARN BORROW SPEND INVEST Earn income on securities by lending Borrow against your account whenever Spend using our Bill Pay to pay any Invest in stocks, options, futures, forex, out fully paid shares.1 needed at our extremely low, market- expense, or
Slide 15: Recent Enhancements and New Products
Recent Enhancements and New Products IMPACT Mobile App – The IMPACT mobile app is a simplified trading platform that allows users to seamlessly align their investments with their values. Investors can select personally relevant investment criteria from 13 impact values, and flag investments based on
Slide 16: Recognized Industry Leader
Recognized Industry Leader 2021 BrokerChooser Best Online Brokers: 2021 Barron’s Awards1: Best Online Broker - 2021 Best Broker for Day Trading - 2021 IBKR’s Multiple Trading Interactive Brokers Rated #1 - Best Online Broker Rated #1 for Active Traders Platforms, Extensive Suite of Rated #1 for Info
Slide 17: Appendix
Appendix wv é InteractiveBrokers
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended December 31, Year Ended December 31, 2018 2019 2020 2018 2019 2020 Adjusted variable expenses (in millions) Execution, clearing and distribution fees $ 269 $ 251 $ 293 Adjusted net revenues Bad debt expense 4 44 13 Net revenues - GAAP $ 1,903 $ 1,937 $ 2,218 Variab
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 (in millions) Adjusted net revenues Net revenues - GAAP $ 558 $ 413 $ 466 $ 500 $ 532 $ 539 $ 548 $ 599 $ 893 $ 754 $ 464 Non-GAAP adjustments Currency diversification strategy, net 19 6 47 (12) 49 (16) (27)
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