Virtu Financial, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

  • Record-Setting Performance: Adjusted Net Trading Income (ANTI) was $785 million in Q1 2020, up more than 200% from Q4 2019 ($250M approx). Average daily ANTI was $12.7 million.
  • Strong April Performance: April 2020 ANTI ranged from $284M–$290M ($13.5M–$13.8M per day), up ~8% over Q1 average.
  • Driving Factors: Market volatility (5x increase in S&P realized volatility), U.S. equity volumes (+70% QoQ), and surging retail participation (record levels).
  • Profitability: Adjusted EPS reached $2.05 (vs $0.27 in Q4 2019, +659%), and Adjusted EBITDA totaled $570 million (+400% QoQ), the largest quarterly EBITDA in company history.
  • Adjusted EBITDA Margin: 74%, significantly improved due to low fixed-cost base.
  • Segment Highlights:
    • Market Making: ANTI grew more than 335% QoQ (Q1 over Q4).
    • Execution Services: ANTI increased 27% QoQ.
    • FICC Trading (including FX): +200% ANTI increase QoQ.
    • ETF Block Desk P&L: +285% YoY; 2020 YTD already 27% more P&L than all of 2019.
  • Operational Resilience: 95% of staff worked remotely by March; business continuity plans successfully executed; pledged not to make any broad-based layoffs in 2020.

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Operator: Good day, and welcome to the Virtu Financial 2020 First Quarter Results Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Debbie Belevan, SVP of Investor Relations. Deborah Belevan: Thanks, operator, and good morning, everyone. Thanks for joining us. As you know, our first quarter results were released this morning and are available on our website. Today's call may include forward-looking statements, which represent Virtu's current belief regarding future events and are, therefore, subject to risks, assumptions and uncertainties which may be outside the company's control. On today's call, we'll have Mr. Doug Cifu, our Chief Executive Officer; and Mr. Alex Ioffe, our Chief Financial Officer. They will begin with prepared remarks and then take your questions. Please note that our actual results and financial conditions may differ materially from what's indicated in these forward-looking statements. It's important to note that any forward-looking statements made on this call are based upon information presently available to the company, and we do not undertake any or update or revise any forward-looking statements as new information becomes available. We refer you to the disclaimers in our press release and encourage you to review the description of factors c

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