BGC Group, Inc. Q3 FY2024 earnings call

• Delivered record third quarter revenues of $561 million, up 16% y-o-y. • Pre-tax adjusted earnings up more than 24%. • Acquired OTC Global Holdings and Sage Energy Partners, expected to be immediately accretive and add over $450 million in annual revenues. • FMX continues to outperform, with FMX Futures Exchange launched and plans to add FCMs. • Fenics showed strong growth in various segments. • Regional revenue growth across Americas, Europe, Middle East, Africa, and Asia Pacific.

BGC Group delivered record third quarter revenues of $561 million, up 16% compared to the prior year. Total brokerage revenues grew by 15.1% to $500.6 million. Rates revenues increased by 19.6% to $174.3 million. ECS revenues grew by 21.3% to $112.9 million. Foreign exchange revenues improved by 15.4% to $92.1 million. Credit revenues increased by 6.7% to $68 million. Equities revenues grew by 1.3% to $53.3 million. Data, network, and post-trade revenues improved by 17.5% to $32.7 million. Fenics revenues improved by 13.3% to $142.1 million, with Fenics Markets at $116.8 million (up 9.2%) and Fenics Growth Platforms at $25.3 million (up 37.3%). FMX UST had record daily average volume of $53 billion (up 40%) with 29.4% market share. FMX FX had ADV over $9 billion (up >38%). FMX Futures Exchange launched, with plans to add 5-10 FCMs for U.S. treasury futures in Q1 2025. PortfolioMatch U.S. credit volumes up >150% and European up over 9x. Lucera revenue up over 34%. Regional revenues: Americas +19%, Europe, Middle East and Africa +16.5%, Asia Pacific +8.3%.

• Fourth quarter 2024 revenue guidance: $545 million to $595 million, midpoint represents over 11% revenue growth for full year 2024. • Pre-tax adjusted earnings guidance: $122 million to $138 million, midpoint represents around 17% earnings growth for full year 2024.

• Forward-looking statements subject to macroeconomic, social, political, and other factors. • Risks and uncertainties could cause actual results to differ from expectations. Detailed risks outlined in SEC filings.

Q: How satisfied are you with the FMX Futures launch and plans to connect additional FCMs?

A: Opened with 5 FCMs as expected, expects to add 5-10 more in next quarters; teething pains are normal and expected to sort out by end of year.

Q: What drove the decline in FMX CLOB market share?

A: Slight round up/down in numbers, spike in volume from professional trading firms not focused on by BGC, market share outlook remains positive.

Q: Impact of energy acquisitions on margin and growth?

A: Acquisitions immediately accretive, OTC and Sage add over $450 million in annual revenues, organic growth still significant in Q4.

Q: Capital allocation and divestitures?

A: Acquisitions are capital allocation priority, open to divesting small electronic assets for accretive value.

Q: Organic growth outlook?

A: Still expects over 10% revenue growth, Q4 dip due to tough comp, but organic growth remains at 10%.

Q: Quarter-to-date trends and post-election outlook?

A: Business remains strong, expecting positive trends post-election.