Virtu Announces Third Quarter 2024 Results
NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ:VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the third quarter ended September 30, 2024.
Third Quarter 2024:
Net income of $119.0 million; Normalized Adjusted Net Income1 of $132.1 million
Basic and diluted earnings per share of $0.65 and $0.64, respectively; Normalized Adjusted EPS1 of $0.82
Total revenues of $706.8 million; Trading income, net, of $444.0 million; Net income Margin of 16.8%2
Adjusted Net Trading Income1 of $388.0 million
Adjusted EBITDA1 of $214.8 million; Adjusted EBITDA Margin1 of 55.4%
Share buybacks of $48.4 million, or 1.7 million shares, under the Share Repurchase Program3
The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on December 15, 2024 to shareholders of record as of December 1, 2024.
Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.Note 2: Calculated by dividing Net income by Total revenueNote 3: Shares repurchased calculated on a settlement date basis.
Financial Results
Third Quarter 2024:
Total revenues increased 12.2% to $706.8 million for this quarter, compared to $630.2 million for the same period in 2023. Trading income, net, increased 40.5% to $444.0 million for the quarter compared to $316.1 million for the same period in 2023. Net income totaled $119.0 million for this quarter, compared to net income of $117.6 million in the prior year quarter.
Basic and diluted earnings per share for this quarter were $0.65 and $0.64, respectively, compared to basic and diluted earnings per share of $0.63 and $0.63, respectively, for the same period in 2023.
Adjusted Net Trading Income increased 30.2% to $388.0 million for this quarter, compared to $298.0 million for the same period in 2023. Adjusted EBITDA increased 54.0% to $214.8 million for this quarter, compared to $139.5 million for the same period in 2023. Normalized Adjusted Net Income, removing one-time and non-cash items, increased 76.8% to $132.1 million for this quarter, compared to $74.7 million for the same period in 2023.
Assuming all non-controlling interests had been exchanged for common stock, and the Company's Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.82 for this quarter, compared to $0.45 for the same period in 2023.
Operating Segment Information
The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.
Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.
Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.
Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.
The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and nine months ended September 30, 2024 and 2023.
Total revenues by segment(in thousands, unaudited)
Three Months Ended September 30, 2024
Three Months Ended September 30, 2023
Market Making
Execution Services
Corporate
Total
Market Making
Execution Services
Corporate
Total
Trading income, net
$
440,442
$
3,555
$
—
$
443,997
$
310,523
$
5,562
$
—
$
316,085
Commissions, net and technology services
12,721
118,900
—
131,621
6,343
103,933
—
110,276
Interest and dividends income
122,065
3,164
—
125,229
124,803
2,890
—
127,693
Other, net
1,432
108
4,453
5,993
75,682
68
360
76,110
Total Revenues
$
576,660
$
125,727
$
4,453
$
706,840
$
517,351
$
112,453
$
360
$
630,164
Nine Months Ended September 30, 2024
Nine Months Ended September 30, 2023
Market Making
Execution Services
Corporate
Total
Market Making
Execution Services
Corporate
Total
Trading income, net
$
1,264,214
$
14,273
$
—
$
1,278,487
$
1,021,179
$
13,585
$
—
$
1,034,764
Commissions, net and technology services
29,203
347,130
—
376,333
22,677
318,546
—
341,223
Interest and dividends income
330,178
8,109
—
338,287
300,086
7,830
—
307,916
Other, net
43,855
1,063
4,639
49,557
77,580
84
(4,171
)
73,493
Total Revenues
$
1,667,450
$
370,575
$
4,639
$
2,042,664
$
1,421,522
$
340,045
$
(4,171
)
$
1,757,396
Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment(in thousands, unaudited)
Three Months Ended September 30, 2024
Three Months Ended September 30, 2023
Market Making
Execution Services
Corporate
Total
Market Making
Execution Services
Corporate
Total
Trading income, net
$
440,442
$
3,555
$
—
$
443,997
$
310,523
$
5,562
$
—
$
316,085
Commissions, net and technology services
12,721
118,900
—
131,621
6,343
103,933
—
110,276
Interest and dividends income
122,065
3,164
—
125,229
124,803
2,890
—
127,693
Brokerage, exchange, clearance fees and payments for order flow, net
(152,316
)
(24,429
)
—
(176,745
)
(101,077
)
(22,168
)
—
(123,245
)
Interest and dividends expense
(134,912
)
(1,158
)
—
(136,070
)
(132,523
)
(279
)
—
(132,802
)
Adjusted Net Trading Income
$
288,000
$
100,032
$
—
$
388,032
$
208,069
$
89,938
$
—
$
298,007
Nine Months Ended September 30, 2024
Nine Months Ended September 30, 2023
Market Making
Execution Services
Corporate
Total
Market Making
Execution Services
Corporate
Total
Trading income, net
$
1,264,214
$
14,273
$
—
$
1,278,487
$
1,021,179
$
13,585
$
—
$
1,034,764
Commissions, net and technology services
29,203
347,130
—
376,333
22,677
318,546
—
341,223
Interest and dividends income
330,178
8,109
—
338,287
300,086
7,830
—
307,916
Brokerage, exchange, clearance fees and payments for order flow, net
(394,154
)
(73,177
)
—
(467,331
)
(323,868
)
(67,370
)
—
(391,238
)
Interest and dividends expense
(382,200
)
(3,591
)
—
(385,791
)
(340,954
)
(1,942
)
—
(342,896
)
Adjusted Net Trading Income
$
847,241
$
