BGC(US:BGC)2024-07-30 12:05Financial Performance - BGC reported revenues of $550.8 million for Q2 2024, an increase of 11.7% compared to $493.1 million in Q2 2023[20] - GAAP net income for fully diluted shares was $36.1 million, a significant improvement from a loss of $19.7 million in the same quarter last year, representing a 283.1% increase[3] - Adjusted EBITDA grew by 20.2% to $162.4 million, reflecting strong profitability across all earnings metrics[5] - Total revenues for Q2 2024 were $550.8 million, up from $493.1 million in Q2 2023, representing an increase of 11.7%[32] - Consolidated net income for Q2 2024 was $37.2 million, compared to a loss of $22.2 million in Q2 2023[32] - Adjusted Earnings for Q2 2024 showed a pre-tax increase of 13.1% in compensation and employee benefits, totaling $272.0 million compared to $240.4 million in Q2 2023[24] - Brokerage revenues for Q2 2024 were $493.5 million, an increase of 11.3% from $443.6 million in Q2 2023[78] Revenue Breakdown - Rates revenues increased by 15.1% to $166.0 million, driven by higher volumes in interest rate derivatives[6] - ECS revenues rose by 19.3% to $117.7 million, supported by strong organic growth[6] - Foreign Exchange revenues improved by 14.7% to $88.9 million, driven by emerging markets products and G10 options volumes[6] - Fenics revenues grew by 9.7% to $137.3 million, with Fenics Markets generating $115.1 million, a 7.5% increase[8][23] - Total brokerage revenues for the first half of 2024 reached $1.02 billion, up from $935.8 million in the same period of 2023, marking an increase of 9.2%[32] - The company reported a 22.4% increase in revenues from Fenics Growth Platforms, rising to $22.2 million in Q2 2024 from $18.1 million in Q2 2023[66] Market Performance - FMX UST achieved a record market share of 30% in Q2, up from 28% last quarter and 23% a year ago, with average daily volumes improving by 37%[23] - FMX FX average daily volumes improved by over 30% year-over-year, reaching a record ADV of $8.1 billion[24] - FMX UST volumes increased by 37% and FMX FX volumes rose by 30%, showcasing strong performance in these segments[56] Shareholder Information - BGC declared a quarterly cash dividend of $0.02 per share, payable on September 3, 2024[12] - The fully diluted weighted-average share count for Adjusted Earnings was 496.8 million, a 1.7% decrease year-over-year[11] - Common stock outstanding increased to 475,272 in Q2 2024 from 391,745 in Q2 2023, representing a growth of approximately 21.3%[86] - Fully diluted weighted-average share count for Adjusted Earnings decreased to 496,767 in Q2 2024 from 505,493 in Q2 2023, a decline of about 1.4%[86] Tax and Expenses - The GAAP provision for income taxes in Q2 2024 was $18.0 million, a significant increase of 298.4% from a benefit of $9.1 million in Q2 2023[24] - Total expenses for Q2 2024 decreased by 4.9% to $500.2 million compared to $525.8 million in Q2 2023[24] - Interest expense for Q2 2024 was $21,551 thousand, compared to $19,914 thousand in Q2 2023, indicating an increase in borrowing costs[64] - Equity-based compensation and allocations of net income to limited partnership units and FPUs totaled $66,207 in Q2 2024, down from $126,644 in Q2 2023, a decrease of approximately 47.8%[85] Future Outlook - The company expects Q3 2024 revenues to be between $505 million and $555 million, compared to $482.7 million in Q3 2023[27] - The company has full CFTC approval to launch SOFR futures in September, which is expected to be the largest notional futures contract in the world[56] - The company anticipates providing forward-looking guidance for GAAP revenues and certain non-GAAP measures in the future[57] Asset and Liquidity Position - BGC's total assets reached $4,259,195,000 as of June 30, 2024, up from $3,175,937,000 at December 31, 2023[41] - Stockholders' equity decreased to $858,133,000 at June 30, 2024, compared to $885,083,000 at December 31, 2023[42] - BGC's cash and cash equivalents decreased to $571,659,000 as of June 30, 2024, from $655,641,000 at December 31, 2023[41] - Total liquidity, including financial instruments owned at fair value, was $759,066 thousand as of June 30, 2024, compared to $701,433 thousand at the end of 2023[63] Non-GAAP Measures - Adjusted Earnings are used by management to evaluate overall business performance and are not indicative of liquidity[39] - BGC's non-GAAP Constant Currency revenues provide a clearer comparison of underlying operating performance by eliminating foreign currency fluctuations[58] - The non-GAAP provision for income taxes was adjusted by $6.3 million in Q2 2024, compared to an adjustment of ($14.2) million in Q2 2023, indicating a shift in tax strategy[85]