Financial Data and Key Metrics Changes - BGC Group reported record fourth quarter and full year revenues, growing by 10.8% to $572.3 million, with full year revenues increasing by 11.2% [7][9] - Pre-tax adjusted earnings grew by 16.9% to $129.5 million, while post-tax adjusted earnings increased by 21.9% to $123.5 million, resulting in a post-tax adjusted earnings per share improvement of 19% to $0.25 [17] - Adjusted EBITDA was $192 million, reflecting a 26.7% improvement [17] - Liquidity as of December 31 was $897.8 million, compared to $701.4 million at the end of 2023 [19] Business Line Data and Key Metrics Changes - Brokerage revenues grew by 11.8% to $516.1 million, with rates revenues increasing by 8.8% to $169.6 million due to higher volumes in interest rate derivatives and U.S. Treasuries [10] - DCS revenues surged by 28% to $134.1 million, driven by strong growth in the Energy Complex and the acquisition of Sage Energy Partners [10] - Foreign exchange revenues rose by 21.3% to $93.6 million, primarily due to higher options and emerging market foreign exchange volumes [10] - Credit revenues decreased by 4.9% to $62.4 million, while equities revenues declined by 3.5% to $56.3 million [11] 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% [16] - FMX UST generated average daily volumes of over $52 billion for the fourth quarter, translating to over 30% market share, up from 29% last quarter and 26% a year ago [13] - FMXFX volumes improved by approximately 80% compared to last year, achieving record average daily volumes of more than $11 billion [13] Company Strategy and Development Direction - The company expects to close the acquisition of OTC Holdings around the end of the first quarter, which is anticipated to contribute more than $450 million in annual revenues [8][9] - The management emphasized the importance of electronic trading and strategic acquisitions to enhance shareholder value and market position [6][25] - The company aims to maintain a growth trajectory with a target of approximately 10% revenue growth in the core business [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue strong revenue growth, with trading volumes currently outpacing the record set in Q1 2024 [7][9] - The leadership transition is expected to be smooth, with Howard Lutnick complying with Senate Ethics Committee standards regarding his holdings [23][24] - The company anticipates total revenues for Q1 2025 to be between $610 million and $660 million, representing approximately 10% growth year-over-year [20] Other Important Information - The company reported that Fenix revenues improved by 8.6% to $142.1 million, with growth driven by higher electronic volumes across rates and foreign exchange [12] - The management highlighted the importance of stock-based compensation for retention and growth, indicating no plans to change this approach [41][42] Q&A Session Summary Question: Timeline of executive leadership transition and planned sale of Howard's BGC shares - Howard will comply with Senate Ethics Committee standards, divesting his holdings within 90 days of confirmation, with no expected sales on the open market [23][24] Question: Contribution of Sage acquisition to revenue growth - Sage added between 1% and 2% to the 11.7% growth in Q4, with similar expectations for Q1 2025 [27] Question: Drivers of pretax adjusted earnings margin expansion - The company benefits from a stable cost base that does not grow in line with revenue, leading to improved margins [28] Question: Progress on FMX and U.S. Treasury futures launch - The company remains on track for the launch, expecting to have 10 FCMs connected by the end of Q1 2025 [34] Question: Revenue expectations from OTC acquisition - OTC is expected to generate around $400 million in annual revenues, with initial margins anticipated to be lower than BGC's core business [38] Question: Treatment of stock-based compensation in earnings - The company believes stock-based compensation is crucial for retention and growth, with no plans to change this practice [41][42]

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 ...

This year started on a strong note in light of initial optimism regarding potential interest cuts by the Federal Reserve, a solid labor market, strong consumer spending and technological developments. Nevertheless, the optimism related to interest rate cuts was tempered by concerns regarding geopolitical tensions in the Middle East and renewed inflation fears. This uncertainty regarding rate cuts led to increased client volatility. Though the Fed has reduced interest rates by 100 basis points since Septembe ...

Core Insights - BGC Group, Inc. has appointed Mike Whitaker as the Global Chief Information Officer, a newly created role aimed at developing a cohesive technology strategy to drive innovation and growth [1][2]. Company Overview - BGC Group, Inc. is a leading global marketplace 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 [4]. - The company serves a diverse clientele, including major banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, and investment firms [4]. Leadership Background - Mike Whitaker brings over 40 years of experience in financial services and technology, previously holding senior technology management roles at Citi for 15 years, where he was the Head of Operations & Technology [2][3]. - Prior to Citi, Whitaker worked at Deutsche Bank and Barclays Capital, focusing on various technology functions including CIO for Global Fixed Income and Algorithmic trading [3].

Core Viewpoint - BGC Group, Inc. has sold Capitalab for $46 million, demonstrating its commitment to unlocking shareholder value and focusing on high-growth electronic offerings [1][2]. Financial Summary - The sale of Capitalab generated gross proceeds of $46 million, which corresponds to a revenue multiple of approximately 7.5 times [1][2]. - The one-time gain from this transaction will be included in BGC's consolidated results under U.S. GAAP but excluded from Adjusted Earnings [2]. Business Focus - BGC will retain its high-growth, post-trade foreign exchange risk reduction business, previously under the Capitalab brand, which will be renamed Fenics NDF Match [3]. - The company continues to emphasize growth in its technology-driven business, Fenics, which generated over $550 million in revenue over the last 12 months [1]. Company Overview - BGC Group, Inc. is a leading global marketplace and financial technology services company, serving a wide range of clients including major banks, broker-dealers, and investment firms [4]. - The company has partnered with leading global investment banks to create FMX, which includes a U.S. interest rate futures exchange and a spot foreign exchange platform [5].

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies with strong net profit margins, such as StoneX Group Inc., Universal Technical Institute, Climb Global Solutions, and BGC Group, are highlighted for their solid financial performance [1][13][14][16][18] Financial Metrics - Net profit margin is calculated as Net Profit/Sales * 100, reflecting the amount retained after all expenses [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value [3] - Companies with a competitive edge typically have higher net profit margins compared to their peers [4] Investment Considerations - A strong net profit margin provides clarity on a company's business model, including pricing policy and cost structure, making it a preferred metric for investors [5] - However, net profit margin varies significantly across industries, and its relevance can diminish for technology companies [5][6] - Differences in accounting treatments, especially regarding non-cash expenses, complicate comparisons between companies [6] Strategic Focus - A healthy net profit margin combined with solid earnings per share (EPS) growth is essential for a successful business model [7] - Screening parameters for investment include a net margin of at least 0% and positive EPS growth [9][10] Company Highlights - **StoneX Group Inc.**: Offers financial services with a Zacks Rank of 1 and a VGM Score of A; fiscal 2025 earnings estimate increased to $8.04 per share [13] - **Universal Technical Institute**: Provides technical education with a Zacks Rank of 1 and a VGM Score of A; fiscal 2025 earnings estimate revised to 97 cents per share [14][15] - **Climb Global Solutions**: Specializes in IT distribution with a Zacks Rank of 1 and a VGM Score of A; fiscal 2024 earnings estimate increased to $4.14 per share [16][17] - **BGC Group**: A brokerage and financial technology firm with a Zacks Rank of 1 and a VGM Score of B; fiscal 2024 earnings estimate revised to 99 cents per share [18][19]