Virtu Financial, Inc. Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Adjusted EPS: $0.74, up significantly from Q4 2022 (exact Q4 EPS not provided).
  • Adjusted Net Trading Income (NTI): $373 million ($6 million per day), up 38% from Q4 2022.
  • Adjusted EBITDA: $207 million (up 65% from Q4 2022) with a 56% margin (up from 46% in Q4).
  • Market Making NTI: $278 million (up 53% vs. Q4 2022).
  • Execution Services NTI: $95 million (up 8% vs. Q4 2022), aided by increased March volatility.
  • Operating Expenses: $181 million, flat year-over-year.
  • Share Repurchases: 3.9 million shares repurchased in Q1 ($76 million); 4.6 million shares repurchased YTD through April 19; total buyback since 2020 exceeds 36.9 million shares and $987.2 million.
  • Dividend: Maintained at $0.96 annually ($0.24 quarterly).

Key Business Highlights

  • Market Making Performance: Outperformed internal benchmarks across all segments, especially currencies, commodities, and European equities.
  • Growth Initiatives: Accounted for $650,000 per day in NTI (13% higher than Q4 2022), or 11% of total NTI for the quarter. Major contributors included options market making and the global ETF block initiative (up 20% vs. average quarterly 2022).

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Operator: Hello and welcome to the Virtu Financial First Quarter 2023 Results. My name is Elliot, and I'll be coordinating the call today. [Operator Instructions] I would now like to hand over to Andrew Smith, Head of Investor Relations. The floor is yours. Please go ahead. Andrew Smith: Thank you, Elliot, and good morning. Thank you -- thank you everyone for joining us. Our first quarter results were released this morning and are available on our website. With us today on this morning's call, we have Mr. Douglas Cifu, our Chief Executive Officer; Mr. Joseph Molluso, our Co-President and Co-Chief Operating Officer; Ms. Cindy Lee, our Deputy Chief Financial Officer; and Mr. Sean Galvin, our Chief Financial Officer. We will begin by -- we will begin with prepared remarks and then take your questions. First, a few reminders. 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. Please note that our actual results and financial conditions may differ materially from what is indicated in these forward-looking statements. It is important to note that any forward-looking statements made on this call are based on information presently available to the company, and we do not undertake to update or revise any forward-looking statements as new information becomes available. We refer you to disclaimers in our press r

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