Company Leadership Changes - BGC Group, Inc. has appointed Stephen Merkel as the new Chairman of the Board of Directors following Howard W. Lutnick's resignation as CEO and Chairman after being confirmed as the 41st Secretary of Commerce [1][2] - Stephen Merkel has been with BGC since its founding and will continue his roles as Executive Vice President and General Counsel [2][4] - Brandon Lutnick will join the Board of Directors, bringing his experience from Cantor Fitzgerald, where he served as Chairman and was involved in corporate strategy [2][7] Background of Key Individuals - Stephen Merkel has over 30 years of experience with BGC and has held various leadership roles within the Cantor Fitzgerald group of companies [3][4] - Brandon Lutnick has a background in equity sales and trading and has been involved in overseeing projects related to Cantor Fitzgerald and its affiliates [7][8] Company Overview - BGC Group, Inc. is a leading global brokerage and financial technology company, providing services across various financial products including fixed income, foreign exchange, and commodities [9][10] - The company has partnered with major global investment banks to create FMX, a U.S. interest rate futures exchange, and has developed a fast-growing U.S. cash treasuries platform [10]

Core Insights - BGC Group, Inc. has appointed John Abularrage, JP Aubin, and Sean Windeatt as Co-Chief Executive Officers, with Windeatt retaining his role as Chief Operating Officer [1][2] - The leadership transition follows Howard W. Lutnick's confirmation as the 41st Secretary of Commerce, marking a significant change in the company's executive structure [2] - Under the new leadership, BGC aims to continue its strategic initiatives and maintain its record of double-digit revenue growth, having generated over $2.25 billion in revenue in 2024 [2] Leadership Changes - John Abularrage has been appointed as Co-CEO and has previously served as Co-Global Head of Brokerage and CEO of the Americas for BGC [4][5] - JP Aubin, also a Co-CEO, has been with BGC since 2005 and has played a crucial role in the company's expansion in Europe [6][7] - Sean Windeatt, who has been with the company for over 27 years, will co-lead alongside Abularrage and Aubin, focusing on transformative strategies for growth [10][11] Company Performance - BGC has consistently achieved double-digit revenue growth, with record revenues exceeding $2.25 billion in 2024 [2] - The company has a diverse range of products and services, including fixed income, foreign exchange, energy, and commodities, catering to a wide array of clients [12][13]

Core Insights - Howard W. Lutnick has been confirmed as the 41st Secretary of Commerce, stepping down from his roles at BGC Group, Inc. [1] - Under Lutnick's leadership, BGC has become a leading global brokerage and financial technology company, with over 4,000 employees, revenues exceeding $2.25 billion, and a market capitalization of approximately $4.5 billion [2][4]. Company Overview - BGC Group, Inc. is recognized as the world's most valuable wholesale financial services intermediary, pioneering electronic trading solutions, including the automation of the U.S. Treasury market [2][7]. - The company has launched FMX, a premier U.S. Treasury and U.S. interest rate futures trading marketplace, in collaboration with ten leading global investment banks and market-making firms [3][8]. Leadership and Contributions - Lutnick is acknowledged for his visionary leadership and ability to identify market opportunities, positioning BGC ahead of industry trends [3]. - He has a history of philanthropy, having donated over $100 million to various causes, including support for victims of terrorism and natural disasters [4][5]. Recent Developments - Following his appointment, Lutnick will divest his interests in BGC to comply with U.S. government ethics rules [4]. - BGC has announced additional executive and board changes in light of Lutnick's departure [4].

Financial Data and Key Metrics Changes - BGC Group reported record fourth quarter revenues of $572.3 million, an increase of 10.8% year-over-year, and full-year revenues grew by 12% [9][11] - Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by 26.7% to $192 million [21] - Post-tax adjusted earnings increased by 21.9% to $123.5 million, with adjusted earnings per share rising by 19% to $0.25 [21] Business Line Data and Key Metrics Changes - Brokerage revenues grew by 11.8% to $516.1 million [11] - Rates revenues increased by 8.8% to $169.6 million, driven by higher volumes in interest rate derivatives and U.S. treasuries [12] - ECS revenues surged by 28% to $134.1 million, bolstered by the acquisition of Sage Energy Partners [12] - Foreign exchange revenues rose by 21.3% to $93.6 million, primarily due to higher options and emerging market volumes [12] - Credit revenues decreased by 4.9% to $62.4 million, while equities revenues declined by 3.5% to $56.3 million [12] - Data, network, and post-trade revenues improved by 10.3% to $32.6 million, with subscription-based revenue growth driving this increase [13] Market Data and Key Metrics Changes - Americas revenues increased by 17.1%, Asia Pacific revenues rose by 10.2%, and Europe, Middle East, and Africa revenues grew by 6.5% [19] - FMX UST achieved over 30% market share in the fourth quarter, up from 29% in the previous quarter [16] - FMX FX volumes improved by approximately 80% year-over-year, with average daily volumes exceeding $11 billion [16] Company Strategy and Development Direction - The company aims to close the acquisition of OTC Holdings by the end of the first quarter of 2025, expecting these acquisitions to contribute over $450 million in annual revenues [10][23] - BGC Group is focused on expanding its electronic trading capabilities and enhancing its market share in the foreign exchange market [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth, with expectations of total revenues between $610 million and $660 million for the first quarter of 2025, representing approximately 10% growth [23] - The company anticipates pretax adjusted earnings in the range of $145 million to $161 million for the first quarter, indicating a 13% growth [23] Other Important Information - The company’s Chairman and CEO, Howard Lutnick, has been nominated as the 41st United States Secretary of Commerce [8] - Management confirmed that Howard will comply with Senate Ethics Committee standards regarding the divestment of his BGC shares [31] Q&A Session Summary Question: Transition timeline for executive leadership and sale of Howard's BGC shares - Management confirmed Howard will divest his holdings within 90 days of Senate confirmation, with no expected sales on the open market [31] Question: Contribution of Sage acquisition to revenue growth - Sage contributed between 1 and 2 percentage points to the 11.7% growth in the fourth quarter, expected to remain the same in the first quarter of 2025 [36] Question: Drivers of pretax adjusted earnings margin expansion - Management noted that revenue growth outpacing cost increases and economies of scale from acquisitions are driving margin expansion [38] Question: Progress on FMX and U.S. Treasury futures launch - Management confirmed they are on track for the U.S. Treasury futures launch, with expectations to onboard 10 FCMs by the end of Q1 2025 [42][44] Question: Stock-based compensation treatment - Management emphasized the importance of stock-based compensation for retention and growth, indicating no plans to change this approach [54]

BGC Group (BGC) Q4 2024 Earnings Call February 14, 2025 11:00 AM ET Company Participants Jason Chryssicas - Head of Investor RelationsSean Windeatt - Co-CEO & Chief Operating OfficerJason Hauf - Chief Financial Officer Conference Call Participants Patrick Moley - Sr. Research Analyst Operator Greetings and welcome to the BGC Group Inc. Fourth Quarter twenty twenty four Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. ...

BGC GROUP, INC. NASDAQ: BGC EARNINGS PRESENTATION Q4 2024 DISCLAIMER DISCUSSION OF FORWARD-LOOKING STATEMENTS ABOUT BGC Statements in this document regarding BGC that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statem ...

Core Viewpoint - BGC Group reported quarterly earnings of $0.25 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.21 per share a year ago [1]. Financial Performance - The company posted revenues of $572.33 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.41%, and up from $516.76 million year-over-year [2]. - BGC Group has surpassed consensus revenue estimates three times over the last four quarters [2]. Stock Performance and Outlook - BGC Group shares have increased approximately 4.8% since the beginning of the year, outperforming the S&P 500's gain of 4% [3]. - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4]. Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $646 million, and for the current fiscal year, it is $1.06 on revenues of $2.49 billion [7]. - The estimate revisions trend for BGC Group is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]. Industry Context - The Financial - Investment Bank industry, to which BGC Group belongs, is currently in the top 1% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8].

Revenue Performance - BGC Group reported record revenues of $572.3 million for Q4 2024, a 10.8% increase from $516.8 million in Q4 2023, and full-year revenues of $2,262.8 million, up 11.7% from $2,025.4 million in FY23[3][9]. - Total revenues for Q4 2024 reached $572.3 million, a 10.8% increase from $516.8 million in Q4 2023[31]. - Total brokerage revenues for Q4 2024 were $516.1 million, an 11.8% increase from $461.8 million in Q4 2023[7]. - ECS revenues grew by 28.0% to $134.1 million in Q4 2024, driven by strong growth in the energy sector and the acquisition of Sage Energy Partners[10]. - Foreign Exchange revenues increased by 21.3% to $93.6 million, primarily due to higher options and emerging market foreign exchange volumes[10]. - Fenics revenues reached $142.1 million in Q4 2024, an 8.6% increase, with Fenics Growth Platforms growing by 20.2%[13][14]. - Rates revenues increased by 8.8% to $169.6 million in Q4 2024, compared to $155.8 million in Q4 2023[86]. - Credit revenues decreased by 4.9% to $62.4 million in Q4 2024, down from $65.6 million in Q4 2023[86]. - Interest and dividend income, along with fees from related parties, decreased by 6.9% to $23.7 million in Q4 2024 from $25.4 million in Q4 2023[86]. Earnings and Profitability - The company's pre-tax adjusted earnings for Q4 2024 were $129.5 million, a 16.9% increase year-over-year, while post-tax adjusted earnings rose by 21.9% to $123.5 million, resulting in post-tax adjusted earnings per share of $0.25, a 19.0% improvement[3][9]. - Basic earnings per share for Q4 2024 were $0.05, compared to $0.04 in Q4 2023, indicating a 25.0% increase[33]. - Consolidated net income for the year ended December 31, 2024, was $123.2 million, compared to $38.8 million in 2023, representing a significant increase of 217.5%[31]. - GAAP net income available to common stockholders for Q4 2024 was $25,203,000, compared to $19,945,000 in Q4 2023, marking a 26% increase[81]. - Adjusted earnings before noncontrolling interest in subsidiaries and taxes for Q4 2024 reached $129,527,000, up 17% from $110,814,000 in Q4 2023[68]. - Adjusted EBITDA for FY 2024 was $714,273,000, representing a 24% increase from $573,727,000 in FY 2023[81]. Expenses and Liabilities - Total expenses under GAAP for Q4 2024 were $586.0 million, a 16.7% increase from $502.2 million in Q4 2023[17]. - Total liabilities increased to $2.51 billion in 2024, up from $2.28 billion in 2023, which is a rise of 10.2%[29]. - Total compensation and employee benefits for the year were $1.49 billion, up from $1.35 billion in 2023, reflecting an increase of 10.7%[31]. Cash and Assets - Cash and cash equivalents rose to $711.6 million in 2024, compared to $655.6 million in 2023, marking an increase of 8.5%[29]. - Total assets increased to $3.59 billion as of December 31, 2024, up from $3.18 billion in 2023, reflecting a growth of 13.0%[29]. - Total liquidity as of December 31, 2024, was $897,781,000, an increase of 28% from $701,433,000 on December 31, 2023[80]. Dividends and Shareholder Returns - BGC's Board of Directors declared a quarterly cash dividend of $0.02 per share, payable on March 20, 2025[24]. - The company declared dividends of $0.02 per share in Q4 2024, up from $0.01 per share in Q4 2023[68]. Future Outlook and Strategy - The company expects Q1 2025 revenues to be between $610 million and $660 million, compared to $578.6 million in Q1 2024[23]. - The company plans to continue focusing on market expansion and new product development to drive future growth[30]. - The company continues to expand its market presence through partnerships and the development of new platforms, including the FMX Futures Exchange[92]. Accounting and Financial Metrics - The company adjusts its earnings calculations to exclude non-cash GAAP items, such as amortization of intangibles and acquisition-related costs, to better reflect underlying performance[45]. - BGC's Adjusted Earnings are calculated on a pre-tax basis, with a focus on equity-based compensation charges that can lower the non-GAAP effective tax rate[50]. - The company uses a Constant Currency metric to provide a clearer comparison of revenues, excluding the effects of foreign exchange fluctuations, which is important given its significant non-U.S. dollar revenues[64]. - Management believes that Adjusted Earnings provide a clearer understanding of BGC's financial performance and should be considered alongside GAAP results[55]. - The company excludes certain non-cash GAAP items from Adjusted Earnings to reflect ongoing operations more accurately[54]. - The fully diluted share count includes shares related to dilutive instruments, impacting the calculation of Adjusted Earnings per share[52]. - BGC's Adjusted EBITDA is defined as GAAP net income available to common stockholders, adjusted for various non-cash items, providing insight into operating performance[57].

Core Viewpoint - BGC Group, Inc. has announced its financial results for the fourth quarter and full year ended December 31, 2024, along with a quarterly dividend declaration of 2 cents per share [1]. Company Overview - BGC Group, Inc. is a leading global marketplace, data, and financial technology services company, offering a wide range of products including fixed income, foreign exchange, energy, commodities, shipping, equities, and the FMX Futures Exchange [3]. - The company serves a diverse clientele, including major banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, and investment firms [3]. Recent Developments - BGC has partnered with leading global investment banks and market-making firms to create FMX, which includes a U.S. interest rate futures exchange, a spot foreign exchange platform, and a rapidly growing U.S. cash treasuries platform [4].

Conference call to be hosted at 11:00 a.m. ETNEW YORK, Jan. 22, 2025 /PRNewswire/ -- BGC Group, Inc. (Nasdaq: BGC) will announce its fourth quarter 2024 financial results on Friday, February 14, 2025, at approximately 8:00 a.m. ET. A conference call to review the results will follow at 11:00 a.m. ET.BGC plans to issue an advisory press release regarding the availability of its consolidated quarterly financial results at approximately 8:00 a.m. ET on Friday, February 14, 2025, which will be accessible at htt ...