Virtu Financial closes another quarter with a revenue drop of over 40%
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The last year has been very difficult on most types of businesses from all industries, including the financial industry itself. Many of the leading firms in their respective sectors have started struggling, and now, in early 2023, their financial reports are showing just how much struggle they saw through figures.
Virtu Financial is a good example of this. An electronic market maker just published a financial report concerning Q4 2022, as well as the total performance of the company in 2022 as a whole. In both cases, the firm has seen great revenue and net trading income drops compared to the same period in 2021.
The company loses 43% in revenue
According to the report, the total revenue generated by the company’s financial products and services went down by 43.6% year-over-year. The fourth quarter of 2021 resulted in $485.6 million in revenue. In comparison, Q4 2022 only brought in $274.1 million.
The drops were even noticeable on a quarterly basis, with Q3 2022 bringing in $561 million, compared to Q40s $274.1 million. The drop in revenue also had a strong hit on the company’s net income. The firm’s net income in Q4 2021 was $186 million, while in Q4 2022, it was only $39.6 million. As for Q3 2022, net income reached $79.9 million, so once again, there is a quarterly drop and a YoY drop.
The company commented that its Adjusted Net Trading Income decreased by 43.6%, while adjusted EBITDA decreased by 61.8% compared to 2021 figures for the same period.
Virtu Financial: 2021 vs 2022 performance and figures
For the most part of 2022, Virtu Financial experienced worsening conditions as the quarters progressed in almost every period, with Q2 being the only exception. Overall, the last year brought bad performance for the firm, with total annual revenue falling to $2.36 million, sinking by 15.9% from the $2.88 million seen in 2021.
As for net profit, it was almost halved in 2022 compared to 2021. In 2021, the company reported total net profit of $827.2 million. In 2022, it sank to $468.3 million, as mentioned earlier. This is a 43% decline, and it doesn’t end there. Earnings per share (EPS) also sank from $3.95 in 2021 to $2.45 in 2022.
Virtu Financial’s shares, listed on Nasdaq, also mirrored the deteriorating conditions. VIRT shares went down by 30% throughout 2022, and they are 50% down from the all-time high. This Thursday, January 26th, 2023, the cost of Virtu’s shares was $20.49. However, the shares are already slipping by as much as 3.6%, dropping to $19.75 in pre-session trading. This represents not only some of the lowest levels that the firm has seen but also major volatility.
