Fourth Quarter 2022

Earnings Supplement

© 2022 Virtu Financial. All rights reserved.

Fourth Quarter & Full Year Highlights

FY 2022

4Q 2022

Notable Accomplishments

Adj. NTI1

$1,468M

Adj. NTI/day1,2

$5.8

Normalized Adj. EPS1

$3.00

Adj. EBITDA1

Adj. NTI1

$274M

Adj. NTI/day1,2

$4.4

Normalized Adj. EPS1

$0.37

Adj. EBITDA1

  • Organic growth initiatives generated $579K per day of Adj. NTI1 in 4Q 2022 (13% of firmwide Adj. NTI)

o FY 2022 Adj. NTI1 per day of $614K (11%

of firmwide Adj. NTI)

▪ +12% vs FY 2021

• Repurchased 2.1M shares for $45M in 4Q

2022

o Repurchased 16.2M shares for $461M in

$859M

$125M

Adj. EBITDA Margin1,3

Adj. EBITDA Margin1,3

59%

46%

Debt to LTM Adj. EBITDA1

Debt to LTM Adj. EBITDA1

2.1x

2.1x

FY 2022

  1. Cumulative repurchases of 32.8M shares for $910M, representing 13.1% of shares outstanding, net of issuances4,5

See endnotes at end of this supplement

2

Key Financial Metrics

Annual

Quarterly

Comparison

FY

FY

FY

FY 2021

FY'22

4Q 2022 v

FY'22 v

($M)

2020

2021

2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

3Q'22

4Q'21

FY'21

Total Adjusted Net Trading Income

1,2

$2,271

$1,910

$1,468

$728

$342

$354

$486

$505

$357

$331

$274

- 16%

- 43%

- 23%

Daily Average Adj. NTI

1,2

$9.0

$7.6

$5.8

$11.9

$5.4

$5.5

$7.6

$8.1

$5.8

$5.2

$4.4

1

$1,782

$1,428

$1,058

$575

$232

$249

$372

$382

$254

$238

$185

Market Making Adj. NTI

- 21%

- 50%

- 26%

Mark et Mak ing Daily Average Adj. NTI

1

$7.0

$5.7

$4.2

$9.4

$3.7

$3.9

$5.8

$6.2

$4.1

$3.7

$2.9

1,2

$489

$482

$409

$153

$110

$106

$114

$123

$104

$93

$89

Execution Services Adj. NTI

- 2%

- 20%

- 15%

Execution Services Daily Average Adj. NTI

1,2

$1.9

$1.9

$1.6

$2.5

$1.7

$1.7

$1.8

$2.0

$1.7

$1.5

$1.4

Adjusted Cash Operating Expenses

1

$623

$609

$609

$163

$145

$144

$157

$161

$148

$150

$149

- 1%

- 5%

- 0%

Total Adjusted Operating Expenses

1

$690

$677

$675

$180

$161

$160

$175

$179

$164

$167

$165

- 2%

- 6%

- 0%

1

$1,648

$1,301

$859

$565

$197

$211

$328

$344

$209

$181

$125

- 31%

- 62%

- 34%

Adjusted EBITDA

Adjusted EBITDA Margin

1,3

73%

68%

59%

78%

58%

59%

68%

68%

59%

55%

46%

- 9 pts

- 22 pts

- 10 pts

Long-Term Debt (at end of period)

$1,670

$1,630

$1,824

$1,667

$1,632

$1,633

$1,630

$1,829

$1,826

$1,824

$1,824

+ 0%

+ 12%

+ 12%

Debt / LTM Adjusted EBITDA

1

1.0x

1.3x

2.1x

1.0x

1.2x

1.2x

1.3x

1.7x

1.7x

1.7x

2.1x

+ 24%

+ 69%

+ 69%

Normalized Adjusted EPS

1

$5.76

$4.57

$3.00

$2.04

$0.63

$0.70

$1.19

$1.27

$0.73

$0.61

$0.37

- 39%

- 69%

- 34%

Daily Average Adj. NTI1 Trend

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

-

$12.7

$11.9

$10.6

$7.1

$7.6

$8.1

$5.7

$5.4

$5.5

$5.8

$5.2

$3.8

$3.9

$4.1

$4.4

$2.1

$2.2

$2.4

$10.5

$8.8

$4.0

$5.0

$9.4

$3.7

$3.9

$5.8

$6.2

$4.1

$3.7

$2.9

$1.6

$1.7

$1.7

$2.1

$1.9

$1.6

$2.1

$2.5

$1.7

$1.7

$1.8

$2.0

$1.7

$1.5

$1.4

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

4Q'20

1Q'21

2Q'21

3Q'21

4Q'21

1Q'22

2Q'22

3Q'22

4Q'22

Execution Services

Market Making

See endnotes at end of this supplement

3

Major Market Metrics

Annual

Quarterly

Comparison

FY

FY

FY

FY 2021

FY'22

4Q 2022 v

FY'22 v

2020

2021

2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

3Q'22

4Q'21

FY'21

Market Metrics (Average Daily)

Volume Metrics

US Equity Consolidated Volume (M shares)

10,924

11,404

11,874

14,650

10,559

9,763

10,782

12,880

12,585

10,899

11,174

+ 3%

+ 4%

+ 4%

US Equity Consolidated Notional Volume ($B)

$479

$565

$573

$627

$533

$512

$590

$718

$612

$478

$488

+ 2%

- 17%

+ 1%

IBKR Retail Equity Share Volume (M)

1,326

3,041

1,299

5,019

2,721

2,689

1,821

1,548

1,292

1,171

1,190

+ 2%

- 35%

- 57%

OCC ADV (M contracts)

30

39

41

42

36

38

41

42

39

40

44

+ 9%

+ 7%

+ 6%

CME FX ADV (K contracts)

861

798

989

850

770

776

800

905

950

1,096

1,000

- 9%

+ 25%

+ 24%

Hotspot ADV FX ($B)

$35

$34

$40

$37

$33

$32

$33

$42

$39

$40

$40

+ 0%

+ 23%

+ 20%

Volatility Metrics

S&P 500 Average Implied Volatility (VIX)

29.3

19.7

25.6

23.2

18.0

18.3

19.3

25.4

27.4

24.8

25.0

+ 1%

+ 30%

+ 30%

S&P 500 Average Realized Volatility

30.4

13.0

24.0

15.8

11.2

11.1

14.0

21.4

28.6

21.3

24.8

+ 16%

+ 77%

+ 84%

Ratio: Realized Volatility / VIX

104%

66%

94%

68%

62%

61%

73%

84%

104%

86%

99%

+ 15%

+ 36%

+ 41%

S&P 500 Intraday Volatility

1.68%

0.96%

1.80%

1.26%

0.76%

0.80%

1.02%

1.83%

2.06%

1.63%

1.72%

+ 6%

+ 68%

+ 89%

SX5E Realized Volatility

30.1

14.8

22.7

13.6

12.9

14.6

17.9

30.8

23.0

19.1

18.3

- 4%

+ 2%

+ 54%

NKY Realized Volatility

24.1

18.5

20.2

20.1

19.1

16.2

18.8

25.0

19.7

18.6

17.8

- 4%

- 5%

+ 9%

CVIX Realized Volatility

66.7

29.3

54.3

32.1

25.0

30.3

29.8

61.9

55.0

58.4

42.1

- 28%

+ 42%

+ 86%

See endnotes at end of this supplement

4

Organic Business Growth

CAGR

2

+ 40%

$806K/day

$656K/day

$614K/day

$576K/day

$579K/day

$548K/day

$501K/day

1

$296K/day

Daily Average Adj. NTI from

$160K/day

Organic Growth Initiatives

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

1Q 2022

2Q 2022

3Q 2022

4Q 2022

Total Adj. NTI from Organic Growth Initiatives

1

$40M

$75M

$166M

$138M

$154M

$50M

$36M

$32M

$36M

1

3%

7%

7%

7%

11%

10%

10%

10%

13%

% of Firmwide Adj. NTI

  • Options Market Making: We had another record year in options market making in 2022 as we continue to expand across venues, asset classes and geographies. We continue to view our investment in this business as a key long-term engine of growth.
  • ETF Block: Revenues have maintained an upward trajectory as we continue to invest in fixed income and become a dealer in the corporate bond market in addition to our existing ETF Block business.
  • Crypto Market Making: We continue to view crypto as a long-term growth opportunity, notwithstanding recent market events.
  1. EDX Markets: Our venture with Citadel Securities, Fidelity Digital and Charles Schwab to develop a crypto ecosystem to serve the interests of global investors is proceeding nicely. We believe EDX will accelerate the institutional adoption of crypto assets by providing a stable and resilient medium for investing in crypto across established global brokerage platforms.

See endnotes at end of this supplement

5

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Virtu Financial Inc. published this content on 26 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2023 11:22:01 UTC.