The following is a summary of the Virtu Financial, Inc. (VIRT) Q1 2024 Earnings Call Transcript:
Financial Performance:
Virtu Financial reported adjusted EPS of $0.76 for the first quarter of 2024.
The company earned $6 million per day of adjusted net trading income, generating a 55% EBITDA margin and $203 million of EBITDA, both on an adjusted basis.
Execution services contributed $93 million of the company's adjusted net trading income or $1.53 million per day.
There was a year-over-year growth rate of 3.4% in total cash operating expenses from 2019 to 2023.
The company used part of its free cash flow to buy back 2 million shares at an average price of $18.31 per share while maintaining its $0.24 per share quarterly dividend.
Business Progress:
Virtu Financial saw record performance in its crypto and ETF Block market making operations.
11 Spot Bitcoin ETFs were launched in the United States, leading to significant net new inflows.
The customer market-making operations experienced growth in retail volume and flow attractiveness, despite reduced volatility.
Digital assets showed a steady increase as a new, reliable asset class.
Execution services expanded by 3% from the previous quarter, with robust trading volumes recorded in Japan and Asia.
Virtu reports it is nearing completion of a multi-year technological transformation aiming for efficient multi-asset workflows for clients.
The CFO will transition from Sean Galvin to Cindy Lee from August 1, 2024.
Virtu continued to expand its options market-making activities, quoting around 10% to 20% of the overall universe.
The company scaled its operations in India and made strategic hires in Europe and Asia.
Virtu announced a planned EPS viewpoint of $3.50 to $4 per share considering a 5-year look back on ITG, KCG, and Virtu without growth initiatives. They referenced a rule change, expected in three to six months, potentially impacting business operations.
More details: Virtu Financial IR
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