Slide 1: Quarter 2023 Earnings Supplement
Presentation Title in Second Title Case Quarter 2023 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 © 2023 Virtu Financial.
Slide 2: Performance Highlights
Performance Highlights 2Q 2023 Key Financials Commentary & Highlights FY 2020 Accomplishments Normalized • Performance consistent with market Adj. NTI1 Adj. NTI/day1,2 Adj. EPS1 opportunity across retail and $279M $4.5M $0.37 institutional businesses Adj. EBITDA Debt to LTM Adj. EBITDA1 Margin1,3 Ad
Slide 3: Key Financial Metrics
Key Financial Metrics Annual Quarterly Comparison FY FY FY YTD FY 2022 FY 2023 2Q 2023 v YTD'23 v ($M) 2020 2021 2022 2023 1Q 2Q 3Q 4Q 1Q 2Q 1Q'23 4Q'22 2Q'22 FY'22 Total Adjusted Net Trading Income 1,2 $2,271 $1,910 $1,468 $652 $505 $357 $331 $274 $373 $279 - 25% + 3% - 22% - 10% Daily Average Adj.
Slide 4: Major Market Metrics
Major Market Metrics Annual Quarterly Comparison FY FY FY YTD FY 2022 FY 2023 2Q 2023 v YTD'23 v 2020 2021 2022 2023 1Q 2Q 3Q 4Q 1Q 2Q 1Q'23 4Q'22 2Q'22 FY'22 Market Metrics (Average Daily) Volume Metrics US Equity Consolidated Volume (M shares) 10,924 11,404 11,874 11,270 12,880 12,585 10,899 11,17
Slide 5: Organic Business Growth
Organic Business Growth CAGR2 + 31% $809K per day $671K $641K $612K per day $540K per day $534K $574K $577K per day per day per day per day $493K per day per day $397K $255K per day $161K per day Daily Average Adj. NTI1 from per day Organic Growth Initiatives FY'18 FY'19 FY'20 FY'21 FY'22 YTD'23 1Q'
Slide 6: 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 $2.04 Weighted $10 198.1M 197.5M
Slide 7: Update on Share Buybacks
Update on Share Buybacks Cumulative Shares Repurchased to Date 1,2 60M 14.8% 16% 12.9% 13.6% 50M 11.8% 14% 10.0% 12% 40M 9.1% 38.5M 36.3M 10% 30M 30.3M 32.3M 8% 5.2% 5.6% 25.1M 26.8M 20M 6% 1.0% 2.7% 16.1M 4% 10M 0.8% 12.5M 7.1M 2% 1.4M 3.7M - 0% Cumulative Shares Repurchased % of Shares Outstanding
Slide 8: Analysis at Various Levels of ANTI
Analysis at Various Levels of ANTI Target Available ($M) Full Year Cash OpEx Adj. EBITDA Adj. EPS 1,3 for Buybacks ANTI/Day1 Adj. NTI 1 Total 1,2 EBITDA1,2 Margin 1,2 Annually4 $5.00 M $1,255 $633 $622 50% $2.07 $50-$120 YTD Adj. EPS & share buybacks in $6.00 M $1,506 $644 $862 57% $3.15 $120-$160 l
Slide 9: Operating Expenses and Long-Term Debt
Operating Expenses and Long-Term Debt Disciplined focus on expense management Operating Expense Results Annual Quarterly Adjusted Operating Expenses FY FY FY FY YTD 2022 2022 2022 2022 2023 2023 ($M) 20192 2020 2021 2022 2023 1Q 2Q 3Q 4Q 1Q 2Q Adj. Cash Compensation1 $230 $321 $314 $315 $163 $88 $79
Slide 10: GAAP Reconciliations and Other Information
GAAP Reconciliations and Other Information
Slide 11: Growing Consensus Supports Phased & Limited Reforms
Growing Consensus Supports Phased & Limited Reforms Except for the proposal to enhance Rule 605, there is broad opposition to Gensler’s proposals. Two joint comment letters (NYSE/Charles Schwab/Citadel Securities and Cboe/State Street Global Advisors/T. Rowe Price/UBS/Virtu Financial) urged the SEC
Slide 12: GAAP Balance Sheet
GAAP Balance Sheet Assets Liabilities and Equity 6/30/2023 6/30/2023 ($M) ($M) Cash and cash equivalents $699 Short-term borrowings, net $112 Cash and securities segregated under regulations and other 47 Securities loaned 1,307 Securities borrowed 1,665 Securities sold under agreements to repurchase
Slide 13: GAAP Income Statement
GAAP Income Statement Annual Quarterly Income Statement FY FY FY FY FY YTD FY 2022 FY 2023 ($mm) 2018 1 2020 2021 2022 2023 1Q 2Q 3Q 4Q 1Q 2Q 2019 Trading income, net $1,267 $912 $2,493 $2,105 $1,629 $719 $522 $396 $397 $313 $413 $306 Commissions, net and technology services 184 499 601 614 530 231
Slide 14: Adjusted EBITDA & Normalized Adjusted EPS
Adjusted EBITDA & Normalized Adjusted EPS Adj. EBITDA / Adj. EPS FY FY FY FY FY YTD FY 2022 FY 2023 ($M) 2018 20191 2020 2021 2022 2023 1Q 2Q 3Q 4Q 1Q 2Q Income (Loss) Before income taxes $696 $(116) $1,383 $997 $557 $170 $242 $174 $102 $40 $135 $35 (+) Financing interest expense 72 122 88 80 92 49
Slide 15: Share Count Roll Forward
Share Count Roll Forward 2021 2022 Grand (M shares) 4Q 2020 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Total Total Total Beginning of Period Shares 197.1 195.6 186.1 179.1 177.3 173.9 186.1 171.7 170.2 197.1 Shares Repurchased - 1.44 - 14.71 - 8.90 - 1.76 - 3.44 - 2.23 - 16.34 - 4.91 - 2.27 - 3
Slide 16: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Operating Segments Adjusted Net Trading Income Reconciliation Total ($M) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Trading income, net $813 $385 $394 $513 $522 $396 $397 $313 $413 $306 Commissions, net and technology se
Slide 17: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Organic Growth Initiatives Organic Growth Initiatives Adjusted Net Trading Income Reconciliation Annual Quarterly ($M) 2018 2019 2020 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Trading income, net $36 $65 $241 $144 $53 $41 $42 $44 $58 $39 Commissi
Slide 18: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation Annual Quarterly Adjusted Operating Expenses Reconciliation FY FY FY YTD FY 2022 FY 2023 ($M) 2020 2021 2022 2023 1Q 2Q 3Q 4Q 1Q 2Q Employee compensation and payroll taxes $394 $376 $391 $199 $103 $99 $103 $86 $103 $96 (-) Cash Compensation Adjustments 1 (72
Slide 19: 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 20: 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 21: End Notes—continued
End Notes—continued These notes refer to metrics and/or defined terms presented on: Slide 6 Capital Management 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:/
Slide 22: End Notes—continued
End Notes—continued 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
Slide 23: End Notes—continued
End Notes—continued 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 I