Virtu Financial, Inc. Q4 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Adjusted Net Trading Income (ANTI): $486M in Q4 2021, representing a 37% increase from Q3 2021 and a 7% increase from Q4 2020.
  • Adjusted EPS: $1.19, up 70% from Q3 2021.
  • Adjusted EBITDA: $328M, a 56% increase from Q3 2021 ($211M), though 4% lower than Q4 2020 ($344M).
  • Adjusted EBITDA Margin: 68% for both the quarter and full year, indicating consistent cost efficiency.
  • Market Making Revenue: $372M or $5.8M per day, 49% higher than Q3 and 16% higher Y/Y.
  • Execution Services Revenue: $114M or $1.8M per day, up 8% from Q3 but down 16% Y/Y.
  • Full-Year Financials: $1.9B in adjusted net trading income, $4.57 adjusted EPS, $1.3B adjusted EBITDA in FY2021.
  • Cash Compensation: $103M in Q4; 17% of ANTI. Annual comp ratio was 20% of ANTI.
  • Buybacks: Repurchased 3.7M shares in Q4. Since late 2020, repurchased $483M worth, reducing share count by 6.4%.
  • Debt Refinancing: Refinanced long-term debt to extend maturity to 2029; upsized by $200M for general use and buybacks. Annual interest expense expected at $87M.

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Operator: Good morning, and welcome to the Virtu Financial Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Andrew Smith, Head of Investor Relations. Please go ahead. Andrew Smith: Thank you, Kate. And good morning, everyone. Thanks for joining us. Our fourth quarter results were released this morning and are available on our website. On this morning's call, we will have Mr. Douglas Cifu, our Chief Executive Officer; Mr. Joseph Molluso, our Co-President and Co-Chief Operating Officer; and Mr. Sean Galvin, our Chief Financial Officer. They 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 condition may differ materially from what is 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 to update or revise any forward-looking statements as new information becomes available. We refer you to disclaimers in our press release and encourage you to review the description of risk factors contained in our annual report and Form 10-K and other

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