Virtu
Financial (Nasdaq:VIRT), an electronic market maker, has presented its
financial report for the fourth quarter and the entire year of 2022, showing lower
revenues and net trading income compared to the same period a year
earlier.
The total
revenue generated by the financial services and products provider fell 43.6%
year-over-year (YoY) to $274.1 in the fourth quarter, compared to $485.6
million reported a year earlier. On a quarterly basis, the company reported a decline, with revenues reaching $561 million in the third quarter. Terrible revenues
negatively impacted its net income, which came in at $39.6 million, compared to
$186 million in the prior year’s quarter. In comparison, the net income in Q3 2022
reached $79.9 million.
“Adjusted
Net Trading Income decreased 43.6% to $274.1 million for this quarter, compared
to $485.6 million for the same period in 2021. Adjusted EBITDA decreased 61.8%
to $125.4 million for this quarter, compared to $328.4 million for the same
period in 2021,” the company commented in the press release.
16% Lower
Revenue in 2022 for Virtu Financial
In the
individual quarters of 2022, Virtu Financial reported worsening conditions in almost
every single period except for Q2 2022. It translated into an overall bad performance for the past year, with total revenues falling to $2,364.8 million
YoY, or by 15.9%, from $2,881.5 million for 2021.
Net profit was almost half the amount in 2022, compared to the $827.2 million reported in 2021, dropping by 43% to $468.3 million. Earnings per share (EPS) were $2.45 compared
to the $3.95 EPS reported a year earlier.
“Adjusted
Net Trading Income decreased 23.2% to $1,467.6 million for this year, compared
to $1,909.9 million for 2021. Adjusted EBITDA decreased 34.0% to $859.1 million
for this year, compared to $1,301.2 million for 2021. Normalized Adjusted Net
Income decreased 39.3% to $532.5 million for this year, compared to $876.6
million for 2021,” the company added.
Watch the recent FMLS22 panel on liquidity between retail and institutional trading.
Virtu Shares
Reflect a Weaker Year
The
Nasdaq-listed shares of Virtu Financial mirrored the company’s deteriorating conditions
in 2022, similar to stocks of many other companies in the technology sector. VIRT
was down 30% in the past year and has lost 50% from its historic highs of
nearly $39 per share.
Virtu’s shares cost $20.49 before Wall Street opened on Thursday, but are presently slipping 3.6% to $19.75 in pre-session trading. These are some of the company’s lowest levels
since the pandemic lows of March 2020.
Other firms
in the tech sector are facing problems as they are forced to lay off their
employees. This week, cryptocurrency exchange Luno announced a 35% reduction in
its workforce, while Robinhood cut 23% of its full-time positions in August due
to challenging market conditions.
The activity
of venture capital funds confirms the ongoing crisis in innovative industries.
Funding for blockchain projects almost stopped in the second half of 2022, while
support for the fintech industry shrank by 30% to $95 billion.
Virtu
Financial (Nasdaq:VIRT), an electronic market maker, has presented its
financial report for the fourth quarter and the entire year of 2022, showing lower
revenues and net trading income compared to the same period a year
earlier.
The total
revenue generated by the financial services and products provider fell 43.6%
year-over-year (YoY) to $274.1 in the fourth quarter, compared to $485.6
million reported a year earlier. On a quarterly basis, the company reported a decline, with revenues reaching $561 million in the third quarter. Terrible revenues
negatively impacted its net income, which came in at $39.6 million, compared to
$186 million in the prior year’s quarter. In comparison, the net income in Q3 2022
reached $79.9 million.
“Adjusted
Net Trading Income decreased 43.6% to $274.1 million for this quarter, compared
to $485.6 million for the same period in 2021. Adjusted EBITDA decreased 61.8%
to $125.4 million for this quarter, compared to $328.4 million for the same
period in 2021,” the company commented in the press release.
16% Lower
Revenue in 2022 for Virtu Financial
In the
individual quarters of 2022, Virtu Financial reported worsening conditions in almost
every single period except for Q2 2022. It translated into an overall bad performance for the past year, with total revenues falling to $2,364.8 million
YoY, or by 15.9%, from $2,881.5 million for 2021.
Net profit was almost half the amount in 2022, compared to the $827.2 million reported in 2021, dropping by 43% to $468.3 million. Earnings per share (EPS) were $2.45 compared
to the $3.95 EPS reported a year earlier.
“Adjusted
Net Trading Income decreased 23.2% to $1,467.6 million for this year, compared
to $1,909.9 million for 2021. Adjusted EBITDA decreased 34.0% to $859.1 million
for this year, compared to $1,301.2 million for 2021. Normalized Adjusted Net
Income decreased 39.3% to $532.5 million for this year, compared to $876.6
million for 2021,” the company added.
Watch the recent FMLS22 panel on liquidity between retail and institutional trading.
Virtu Shares
Reflect a Weaker Year
The
Nasdaq-listed shares of Virtu Financial mirrored the company’s deteriorating conditions
in 2022, similar to stocks of many other companies in the technology sector. VIRT
was down 30% in the past year and has lost 50% from its historic highs of
nearly $39 per share.
Virtu’s shares cost $20.49 before Wall Street opened on Thursday, but are presently slipping 3.6% to $19.75 in pre-session trading. These are some of the company’s lowest levels
since the pandemic lows of March 2020.
Other firms
in the tech sector are facing problems as they are forced to lay off their
employees. This week, cryptocurrency exchange Luno announced a 35% reduction in
its workforce, while Robinhood cut 23% of its full-time positions in August due
to challenging market conditions.
The activity
of venture capital funds confirms the ongoing crisis in innovative industries.
Funding for blockchain projects almost stopped in the second half of 2022, while
support for the fintech industry shrank by 30% to $95 billion.