Yahoo Finance Virtu Financial Inc (VIRT) Q1 2024 Earnings Call Transcript Highlights: Strong Performance with ...
Adjusted EPS: $0.76 for Q1 2024
Adjusted Net Trading Income: $6 million per day
Adjusted EBITDA: $203 million for Q1 2024
Adjusted EBITDA Margin: 55%
Market Making Adjusted Net Trading Income: $274 million or $4.5 million per day
Execution Services Adjusted Net Trading Income: $93 million or $1.5 million per day
Adjusted Operating Expenses: $180 million for Q1 2024
Financing Interest Expense: $23 million for Q1 2024
Quarterly Dividend: $0.24 per share
Share Repurchase: 2 million shares at an average price of $18.31 per share
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide more details on the impact of crypto market making this quarter, particularly the overall contribution to adjusted net trading income (ANTI)? A: Douglas A. Cifu - Virtu Financial, Inc. - Co-founder, CEO & Director: Yes, the contribution from crypto market making was around a couple of hundred thousand dollars a day. It was significant but not as dominant as some might think, with block ETF contributions being even greater this quarter. The crypto market making has established itself as a consistent asset class within our noncustomer market making business.
Q: How does the revenue distribution look in the crypto business? Is it steady or are there outlier days? A: Douglas A. Cifu - Virtu Financial, Inc. - Co-founder, CEO & Director: The revenue distribution in crypto has been fairly steady. There were a couple of days with higher performance around the launch of the ETFs, but these did not significantly skew the overall performance for the quarter. It's a consistent contributor to our business.
Q: With the recent authorization of an additional $500 million for share repurchases, can you discuss the strategy behind the more modest buybacks this quarter? A: Joseph A. Molluso - Virtu Financial, Inc. - Co-President & Co-COO: The buyback levels align with our net trading income and the free cash flow available. Our approach is consistent and we aim to stay within the published ranges for buybacks based on our trading income levels.
Q: How might flat Bitcoin ETF flows impact your revenue from crypto market making? A: Douglas A. Cifu - Virtu Financial, Inc. - Co-founder, CEO & Director: We focus more on gross flows rather than net, as it indicates portfolio reallocations and trading opportunities. Even if net flows are flat, the gross trading volume can still provide revenue opportunities due to the inherent volatility and trading dynamics of the crypto market.
Q: Can you provide insights into the block ETF business, particularly how it compares between equities and FICC? A: Joseph A. Molluso - Virtu Financial, Inc. - Co-President & Co-COO: The block ETF business had a strong quarter, with significant contributions from both equities and fixed income. Our global presence and ability to offer competitive prices across various asset classes have been key to our success in this area.
Q: What are the regulatory focuses for Virtu in the coming months, especially concerning market structure changes proposed by the SEC? A: Douglas A. Cifu - Virtu Financial, Inc. - Co-founder, CEO & Director: We are closely monitoring several SEC proposals, including those related to auctions, best execution, and Reg NMS adjustments. We anticipate changes and are prepared to adapt our strategies accordingly. The outcome of these regulatory developments could impact our operations and market dynamics.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
