Slide 1: BGC Group, Inc. Earnings Presentation Q2 2024
BGC GROUP, INC. NASDAQ: BGC E A R N I N G S P R E S E N TAT I O N Q 2 2 0 2 4
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: Q2 2024 Performance
Q2 2024 PERFORMANCE Highlights of Consolidated Results BUSINESS HIGHLIGHTS Q2 2024 Q2 2023 Change (USD millions) $551mm Revenues $550.8 $493.1 11.7% GAAP income (loss) from operations before income taxes 55.2 (31.3) 276.4% Q2 Record Revenue GAAP net income (loss) for fully diluted shares 36.1 (19.7)
Slide 4: Revenue by Asset Class
REVENUE BY ASSET CLASS Revenue By Asset Class 10% (USD millions) Q2 2024 Q2 2023 Change DATA, NETWORK & POST-TRADE2 AND Rates $166.0 $144.2 15.1% OTHER3 30% ECS1 117.7 98.7 19.3% 9% RATES EQUITIES Foreign Exchange 88.9 77.5 14.7% $551mm Credit 69.4 65.8 5.4% 13% Equities 51.4 57.4 (10.4)% CREDIT Q2
Slide 5: Revenue by Geography
REVENUE BY GEOGRAPHY Revenue By Geography Q2 2024 Q2 2023 Change (USD millions) 33% Americas $198.6 $181.3 9.5% UNITED 35% STATES UNITED EMEA 279.1 244.0 14.4% KINGDOM Asia Pacific 73.1 67.7 7.9% $551mm Total Revenue $550.8 $493.1 11.7% Revenue By Currency Q2 2024 Q2 2024 (USD millions equivalent)1
Slide 6: Global & Diversified Business Model
GLOBAL & DIVERSIFIED BUSINESS MODEL HISTORIC REVENUE BY ASSET CLASS (Percentage of Total Revenues) $2.0bn 10% $2.1bn DATA, NETWORK & POST-TRADE AND OTHER REVENUES Record BGC LTM revenues 11% EQUITIES DIVERSIFICATION $1.5bn 13% CREDIT 16% DRIVING GROWTH 6% $1.0bn 10% FOREIGN EXCHANGE 20% 20% 20% ECS
Slide 7: Front Office Productivity
FRONT OFFICE PRODUCTIVITY FRONT OFFICE HEADCOUNT AND PRODUCTIVITY Period–end Front Office Headcount $977 LTM Front Office Productivity (in USD 000s)1 $957 $908 $977k $861 Record LTM front office productivity, $834 $811 8% growth yr/yr $766 $750 $750 2,388 2,297 2,196 2,111 2,104 2,122 2,026 1,985 2,
Slide 8: Strong Earnings Growth
8 STRONG EARNINGS GROWTH PRE-TAX ADJUSTED EARNINGS POST-TAX ADJUSTED EARNINGS & ADJUSTED EPS Pre-tax Adjusted Earnings Post-tax Adjusted Earnings Pre-tax Adjusted Earnings Margin Adjusted EPS $0.23 22.8% 21.4% $0.20 20.7% 19.0% $126mm $0.17 17.5% $0.15 $0.15 $115mm $106mm $100mm $97mm $91mm $90mm $8
Slide 9: Fenics Overview, Revenue by Asset Class, Revenue Growth
OVERVIEW FENICS REVENUE BY ASSET CLASS REVENUE GROWTH 137mm Fenics Revenue Q2 2024 Revenue 34% 22% FOREIGN $543mm RATES EXCHANGE 10% $449mm Growth yr/yr $137mm $137mm $261mm $319mm $125mm $18mm $22mm Q2 2024 $209mm $107mm $115mm 22% 20% FY 2016 FY 2018 FY 2020 FY 2022 Q2 2024 DATA, NETWORK LTM & POS
Slide 10: FMX Partners Are the Largest FCMs & Liquidity Providers
FMX PARTNERS ARE THE LARGEST FCMS & LIQUIDITY PROVIDERS INVESTMENT BANKS UNMATCHED CAPITAL SAVINGS FOR ALL CLIENTS (INCL. FCM CUSTOMER ACCOUNTS) FMX Partners represent 7 of the 8 largest FCMs & 7 of the 7 largest FCMs holding cleared swaps funds, that equals 94% of ALL customer cleared swap funds To
Slide 11: LCH Clearing Partnership
LCH CLEARING PARTNERSHIP LCH IS A FULLY APPROVED CFTC DCO ("DERIVATIVES CLEARING ORGANIZATION") AND THE WORLD'S LARGEST CLEARER OF INTEREST RATE SWAPS LEADING CLEARED U.S. DOLLAR WORLD’S LARGEST HOLDER OF CROSS-MARGIN CAPITAL SAVINGS INTEREST RATE SWAP MARKET SHARE INTEREST RATE SWAP COLLATERAL AT S
Slide 12: Record Market Share: FMX UST ADV Growth
BUSINESS HIGHLIGHTS RECORD FMX UST MARKET SHARE1 COMPETITIVE LANDSCAPE1 30% 28% 30% FMX UST 30% Dealerweb 10% Record Market Share1 25% 26% (Q2 2024) 23% 21% 20% Q2 18% 2024 +37% FMX UST ADV Growth CME Brokertec (Q2 2024 yr/yr) 60% +34% 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Other Highlights FMX UST
Slide 13: Data, Network & Post-Trade
13 DATA, NETWORK & POST-TRADE OVERVIEW DATA Provider and generator of data across global financial and commodity markets, supported by BGC’s deep wholesale liquidity pools $31mm +14% +70% Contracted value growth in Q2 2024 Q2 2024 Revenue Growth yr/yr DATA, NETWORK & POST-TRADE REVENUE GROWTH NETWOR
Slide 14: ECS (Energy, Commodities & Shipping)
14 ECS (“ENERGY, COMMODITIES, & SHIPPING”) REVENUE BY PRODUCT ECS $118mm +19% Commodities Other Q2 2024 Revenue Growth yr/yr & Metals ECS HAS GROWN FROM BGC’S SMALLEST ASSET CLASS TO ITS SECOND LARGEST Shipping & Freight Q2 Environmental & Energy Transition 2024 Environmental & Energy Transition pro
Slide 15: Q3 2024 Outlook
15 Q3 2024 OUTLOOK OUTLOOK Guidance Actual Metric (USD million) Q3 2024 Q3 2023 Revenues $505 – $555 $482.7 Pre-tax Adjusted Earnings $110 – $127 $101.9 BGC expects to update its quarterly outlook towards the end of September 2024. 15 15
Slide 16: GAAP Financial Results
GAAP FINANCIAL RESULTS
Slide 17: Balance Sheet
17 BALANCE SHEET BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) June 30, December 31, June 30, December 31, 2024 2023 2024 2023 Assets Liabilities, Redeemable Partnership Interest, and Equity Cash and cash equiv
Slide 18: Income Statement
18 INCOME STATEMENT BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Reven
Slide 19: Appendix
APPENDIX
Slide 20: BGC's Fully Diluted Weighted-Average Share Count Summary
20 BGC’S FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT SUMMARY FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT FOR ADJUSTED EARNINGS (MILLIONS) Fully Diluted Q2 2024 Fully Diluted Weighted-Average Share Count Summary Weighted- Ownership (%) For Adjusted Earnings Average Shares (millions) 564 PUBLIC 342.0 69
Slide 21: Strongly Capitalized & Investment Grade Credit Profile
21 STRONGLY CAPITALIZED & INVESTMENT GRADE CREDIT PROFILE BGC Group, Inc. (in $’000s) As of 6/30/2024 Cash and cash equivalents $571,659 INVESTMENT GRADE CREDIT RATING Financial instruments owned, at fair value 193,988 Repurchase agreements (6,581) Investment Grade Credit Rated: Total Liquidity $7
Slide 22: BGC Corporate Conversion – 1 Year Impact
22 BGC CORPORATE CONVERSION –1 YEAR IMPACT OVERVIEW BGC STOCK TRADING VOLUME1 AVERAGE DAILY VOLUME AVERAGE DOLLAR VALUE TRADED BGC completed its corporate conversion to a Full C-Corporation, changing its name to BGC Group, Inc. and ticker symbol to BGC $22.7mm 3.2mm COST SAVINGS & OPERATIONAL EFFI
Slide 23: Fenics Ecosystem
23 FENICS ECOSYSTEM DATA, NETWORK & RATES CREDIT FOREIGN EXCHANGE EQUITIES POST-TRADE KEY PRODUCTS: KEY PRODUCTS: • FX Spot FENICS MARKET DATA KEY PRODUCTS: (Fenics Markets associated Market Data) • Investment Grade Bonds (IG) • FX Options • Interest Rate Derivatives MARKETS • EGBs • High Yield Bond
Slide 24: The Only Competitor to the CME
24 THE ONLY COMPETITOR TO THE CME FMX UST FMX FX Fully-connected, state-of-the-art FX platform now supercharged for World’s fastest growing U.S. Treasury platform with 30% market share1 growth with the support of our partners Indexed U.S. Government 320 FMX UST Indexed Spot FX 300 Securities ADV Gro
Slide 25: BGC Revenue Correlation & Industry Volumes
25 BGC REVENUE CORRELATION & INDUSTRY VOLUMES BGC’S ASSET CLASS REVENUES ARE GENERALLY CORRELATED TO RELEVANT INDUSTRY SECONDARY MARKET TRADING VOLUMES Q2 2024 VS Q2 2023 Brokerage revenues are driven by secondary market trading volumes in the ASSET CLASS REVENUE TO INDUSTRY VOLUME CORRELATION1 INDU
Slide 26: Shareholder Value Creation
26 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 27: Non-GAAP Definitions and Reconciliation Tables
NON-GAAP DEFINITIONS AND RECONCILIATION TABLES
Slide 28: Reconciliation of GAAP to Adjusted Earnings
28 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 June 30, Three Months Ended June 30, 202
Slide 29: Reconciliation of GAAP to Adjusted Earnings Footnotes
29 RECONCILIATION OF GAAP TO ADJUSTED EARNINGS FOOTNOTES FOOTNOTES (1) The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as follows (in thousands): Three Months Ended June 30, 2024 2023 Issuance of common stock and grants of exchangea
Slide 30: Other Select Financial Data
30 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 June 30, Three Months Ended June 30, 2024 2023 2024 2023 GAA
Slide 31: Differences Between Non-GAAP and GAAP Consolidated Results
31 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 32: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 32 (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 33: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 33 (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 34: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 34 (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 35: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 35 (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 36: Media and Investor Contacts
36 36 Media Contact: Erica Chase +1 212-610-2419 Investor Contact: ir.bgcg.com Jason Chryssicas twitter.com/bgcgroupinc +1 212-610-2426 linkedin.com/company/bgc_group