Virtu Financial : 2024 Q4 Earnings Supplement vF

Published: 2025-01-29 07:06:06 ET VIRT

Fourth Quarter 2024

Earnings Supplement

Performance Highlights

4Q 2024 Key Financials

Normalized

Adj. NTI1

Adj. NTI/day1,2

Adj. EPS1

$458M

$7.3M

$1.14

Adj. EBITDA

Debt to LTM

Adj. EBITDA1

Margin1,3

Adj. EBITDA1

$284M

62%

1.9x

Summary Recent Results

Adj. Net Trading Income / Day1

$4.1M

$6.0M

$6.1M

$7.3M

4Q'23

1Q'24

2Q'24

3Q'24

4Q'24

Normalized Adj. EPS1

$0.27 $0.76 $0.83 $0.82 $1.14

Commentary & Highlights

4Q'23

1Q'24

2Q'24

3Q'24

4Q'24

See endnotes at end of this supplement

Key Financial Metrics

($M)

Total Adjusted Net Trading Income

1,2

Daily Average Adj. NTI

1,2

Market Making Adj. NTI

Mark et Mak ing Daily Average Adj. NTI

1,2

Execution Services Adj. NTI

Execution Services Daily Average Adj.

NTI

1,2

Adjusted Cash Operating Expenses

Total Adjusted Operating Expenses

Adjusted EBITDA

Adjusted EBITDA Margin

1,3

Long-Term Debt (at end of period)

Debt / LTM Adjusted EBITDA

Normalized Adjusted EPS

Annual

Quarterly

Comparison

FY 2023

FY 2024

4Q 2024 v

2020

2021

2022

2023

2024

3Q'24

4Q'23

$2,271

$1,910

$1,468

$1,211

$1,598

$261

$367

$385

$388

$458

+ 20%

+ 75%

$9.0

$7.6

$5.8

$4.8

$6.4

$4.1

$6.0

$6.1

$7.3

$1,782

$1,428

$1,058

$847

$1,195

$167

$274

$286

$288

$348

+ 23%

+ 108%

$7.0

$5.7

$4.2

$3.4

$4.8

$2.7

$4.5

$5.5

$489

$482

$409

$364

$403

$93

$100

$110

+ 12%

+ 18%

$1.9

$1.6

$1.5

$1.6

$1.5

$1.6

$1.7

$623

$609

$643

$679

$162

$164

$168

$173

$174

+ 1%

+ 8%

$690

$677

$675

$706

$745

$178

$180

$184

$190

$191

+ 1%

+ 7%

$1,648

$1,301

$859

$568

$919

$99

$203

$218

$215

$284

+ 32%

+ 186%

73%

68%

59%

47%

58%

38%

55%

56%

55%

62%

+ 7 pts

+ 24 pts

$1,670

$1,630

$1,824

$1,752

$1,767

$1,752

$1,750

$1,767

$1,769

$1,767

- 0%

+ 1%

1.0x

1.3x

2.1x

3.1x

1.9x

3.1x

2.7x

2.4x

1.9x

$5.76

$4.57

$3.00

$1.84

$3.55

$0.27

$0.76

$0.83

$0.82

$1.14

+ 39%

+ 323%

Daily Average Adj. NTI1 Trend

$14M $12M $10M $8M $6M $4M $2M

$12.7M

$11.9M

$10.6M

$7.1M

$7.6M

$8.1M

$7.3M

$5.7M

$5.4M

$5.5M

$5.8M

$5.2M

$6.0M

$6.1M

$4.4M

$4.5M

$4.7M

$4.1M

83%

71%

70%

79%

68%

70%

77%

76%

71%

72%

67%

74%

69%

70%

64%

75%

74%

76%

17%

29%

30%

21%

32%

30%

23%

24%

29%

28%

33%

26%

31%

30%

36%

25%

26%

24%

1Q'20

2Q'20

3Q'20

4Q'20

1Q'21

2Q'21

3Q'21

4Q'21

1Q'22

2Q'22

3Q'22

4Q'22

1Q'23

2Q'23

3Q'23

4Q'23

1Q'24

2Q'24

3Q'24

4Q'24

Execution Services

Market Making

See endnotes at end of this supplement

Major Market Metrics

Annual

Quarterly

Comparison

FY 2023

FY 2024

4Q 2024 v

2020

2021

2022

2023

2024

3Q'24

4Q'23

Market Metrics (Average Daily)

Volume Metrics

US Equity Consolidated Volume (M shares)

10,926

11,404

11,875

11,054

12,218

11,168

11,760

11,935

11,503

13,664

+ 19%

+ 22%

US Equity Consolidated Notional Volume ($B)

$479

$565

$573

$516

$611

$535

$625

$589

$586

$646

+ 10%

+ 21%

Rule 605 Executed Shares (M)

727

805

606

552

554

508

540

513

551

612

+ 11%

+ 20%

Rule 605 Dollar Value of Quoted Spreads ($M)

$10.1

$12.8

$7.2

$5.4

$6.5

$4.9

$7.0

$6.1

$6.3

$7.1

+ 12%

+ 44%

IBKR Retail Equity Share Volume (M)

1,324

3,041

1,299

998

1,205

930

1,002

1,175

1,114

1,522

+ 37%

+ 64%

OCC ADV (M contracts)

+ 4%

+ 16%

CME FX ADV (K contracts)

861

798

989

962

1,030

1,007

980

1,080

1,089

968

- 11%

- 4%

Hotspot ADV FX ($B)

$35

$34

$40

$44

$46

$45

$47

$45

- 6%

- 2%

Volatility Metrics

S&P 500 Average Implied Volatility (VIX)

29.3

19.7

25.6

16.8

15.6

15.3

13.7

14.0

17.1

17.5

+ 2%

+ 14%

S&P 500 Average Realized Volatility

30.5

13.0

24.0

12.9

12.5

12.3

11.1

10.5

15.9

12.4

- 22%

+ 1%

S&P 500 Intraday Volatility

1.7%

1.0%

1.8%

1.0%

0.9%

0.7%

0.9%

1.1%

0.8%

- 25%

- 10%

SX5E Realized Volatility

30.2

14.8

22.7

13.6

13.2

11.5

10.3

12.8

16.4

13.0

- 20%

+ 14%

NKY Realized Volatility

24.1

18.5

20.2

16.0

23.6

18.9

17.2

16.3

43.7

16.8

- 62%

- 11%

CVIX Realized Volatility

66.9

29.3

54.4

29.7

34.8

29.3

32.3

39.0

36.9

31.1

- 16%

+ 6%

See endnotes at end of this supplement

Organic Business Growth

Annual

Trailing 5 Quarters

$1,003K

$787K

per day

$846K

$669K

per day

$641K

$611K

per day

$631K

$540K

per day

$494K

$423K

per day

$255K

per day

$161K

per day

Daily Average Adj. NTI from

per day

Organic Growth Initiatives

FY'18

FY'19

FY'20

FY'21

FY'22

FY'23

FY'24

4Q'23

1Q'24

2Q'24

3Q'24

4Q'24

Adj. NTI from Organic Growth Initiatives

$40M

$64M

$162M

$136M

$153M

$124M

$197M

$27M

$61M

$42M

$40M

$53M

10%

12%

10%

17%

11%

10%

12%

% of Firmwide Adj. NTI

resulted in strong performance amid normalized market conditions.

See endnotes at end of this supplement

Analysis at Various Levels of ANTI

($M)

Full Year

Cash OpEx

Adj.

EBITDA

Target Available

Adj. EPS1,3

for Buybacks

ANTI/Day1

Adj. NTI1

Total1,2

EBITDA1,2

Margin 1,2

Annually4

$5.00 M

$1,250

$659

$591

47%

$1.99

$50-$120

$6.00 M

$1,500

$679

$821

55%

$3.08

$120-$160

$7.00 M

$1,750

$679

$1,071

61%

$4.26

$160-$270

$8.00 M

$2,000

$679

$1,321

66%

$5.45

$270-$400

$9.00 M

$2,250

$679

$1,571

70%

$6.64

$400-$500

$10.00 M

$2,500

$682

$1,818

73%

$7.81

$500-$600

$11.00 M

$2,750

$717

$2,033

74%

$8.83

$600-$700

FY 2024 share

buybacks ($172M) in

line with guidance

See endnotes at end of this supplement

Capital Management

We continue to return capital to shareholders through dividends and share repurchases

Steady Payout in All Environments

Dividends declared per share and Adjusted EPS1, quarterly

$1.44

$1.27

$1.14

$0.83$0.82

$0.73

$0.74

$0.76

$0.61

$0.37

$0.45

$0.37

Adj. EPS $0.24

$0.27

Quarterly

Dividend

of $0.24 FY19 FY20 FY21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 (Avg) (Avg) (Avg)

Return on Invested Capital1,4

Share Buybacks2,3

Shares outstanding and share repurchases, quarterly

Weighted

4.5

Avg. Share

198M

Count

192M

4.0

Period-End 197M

196M

Share Count3.5

3.0

186M

178M

2.5

171M

169M

167M

164M

2.0

172M

170M

163M

162M

160M

168M

165M

1.5

163M

161M

159M

1.0

Shares 0.5

Avg:

1.4M

3.7M

4.0M

3.9M

2.3M

2.7M

2.4M

2.0M

1.4M

1.7M

Repurchased

($34M)

($101M) ($115M) ($76M)

($42M)

($49M)

($44M)

($36M)

($31M)

($48M)

($57M)

3Q20

4Q20

FY21

FY22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

Period Average Invested Capital ($M)

2,500

2,000

1,500

1,000

500

68%

139%

107%

77%

69%

64%

66%

65%

71%

91%

78%

160%

140%

120%

100%

80%

60%

40%

20%

Return on Invested Capital (%)

FY'19

FY'20

FY'21

FY'22

1Q'23

2Q'23

3Q'23

4Q'23

1Q'24

2Q'24

3Q'24

4Q'24

Average of

LTM Invested Capital 1,4

LTM ANTI 1,5

LTM Return on Invested Capital 1,6

See endnotes at end of this supplement

Update on Share Buybacks

Cumulative Shares Repurchased to Date1,2

80M

25%

70M

17.4%

18.1%

18.5%

19.2%

19.4%

20%

60M

16.2%

13.6%

14.8%

50M

11.8%

12.9%

41M

44M

46M

47M

49M

50M

51M

15%

40M

9.1%

10.0%

36M

39M

32M

10%

30M

5.2%

5.6%

25M

27M

20M

2.7%

12M

16M

10M

0.8%

1.0%

Cumulative Shares Repurchased

% of Shares Outstanding (Net)

Total Buybacks per Quarter1

$500M

$32.24

$34.18

$36.41

$40

$35

$30.17

$28.80

$400M

$27.82

$27.65

$26.94

$25.71

$30

$300M

$23.61

$287M

$23.43 $21.72

$19.22 $18.32 $18.13 $18.28

$22.34

$25

$18.31

$20

$200M

$34M $63M $101M

$139M

$102M

$15

$100M

$47M $81M $45M

$76M $42M $49M $44M $36M $31M $48M

$57M

$14M

$10

Total Repurchased (L)

Average Price (R)

See endnotes at end of this supplement

Operating Expenses and Long-Term Debt

Disciplined focus on expense management

Operating Expense Results

Annual

Quarterly

Adjusted Operating Expenses

2023

2024

($M)

2020

2021

2022

2023

2024

$321

$314

$315

$320

$351

$77

$84

$86

$89

$92

Adj. Cash Compensation

Adj. Communications & Data Processing

214

212

220

231

236

Adj. Operations & Administrative

Adjusted Cash Operating Expenses

$623

$609

$643

$679

$162

$164

$168

$173

$174

Depreciation & Amortization

Total Adjusted Operating Expenses

$690

$677

$675

$706

$745

$178

$180

$184

$190

$191

Cash Compensation Ratio

14%

16%

21%

26%

22%

30%

23%

22%

23%

20%

Total Compensation Ratio

17%

19%

26%

32%

27%

36%

27%

28%

25%

Debt Structure at December 31, 2024

Debt Description

($M)

First Lien Term Loan - Floating2

First Lien Term Loan - Fixed with Swap2,3 First Lien Notes

Japannext4

Maturity

Effective

Balance

Annual

Rate

Interest

Jun 2031

S + 2.75%

$170

$12

Jun 2031

7.17%

$1,075

$77

Jun 2031

7.50%

$500

$38

Jan 2026

5.00%

$22

Total5

7.22%

$1,767

$128

LTM Adjusted EBITDA1

$919

Debt / LTM Adjusted EBITDA 1

1.9x

See endnotes at end of this supplement

GAAP Reconciliations and Other Information

Disclaimer

Virtu Financial Inc. published this content on January 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 29, 2025 at 12:05:07.479.