BGC Group, Inc.

first quarter of 2024 financial results press release and the presentation summarizing these results this morning prior to the market open. You can find these at ir.bgcg.com. Please note you can find additional details on our quarterly results in today's press release and investor presentation. Unless otherwise stated, any historical results provided on today's call compare only the first quarter of 2024 with the prior year period. We will be referring to our results on this call only on an adjusted earnings basis unless otherwise stated. We may also refer to adjusted EBITDA. We may refer to our liquidity, which we define as cash and cash equivalents, reverse repurchase agreements and financial instruments owned at fair value, less securities loans and repurchase agreements. We define total capital as redeemable partnership interest, total cycles equity and non-controlling interest in subsidiaries. Please see today's press release for the results under generally accepted accounting principles. Please also see the relevant sections in the back of today's press release for the complete and updated definitions of any non-GAAP terms, reconciliations of these items to the corresponding GAAP results. and how, when, and why management uses such terms. Additional information with respect to our GAAP and non-GAAP results mentioned on today's call is available on our website at ir.bgcg.com and in our investor presentation. We refer to the company's technology-driven businesses as Fenix. Fenix offerings include Fenix Markets and Fenix Growth Platforms. I also remind you that the information regarding our business on today's call that are not historical are forward-looking statements. These include statements about the company's business results, financial position, liquidity, and outlook. Any forward-looking statements involve risks and uncertainties, and except as required by law, BGC undertakes no obligation to update any forward-looking statements. Any outlook and targets discussed in this call assume no material acquisitions, buybacks, extraordinary transactions, or meaningful changes to the company's stock price. For discussion of additional risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see BGC's SEC filings, including but not limited to the risk factors, and special note on forward-looking information, set forth in these filings and any updates to such risk factors, and special note on forward-looking information contained in the subsequent reports on Form 10-K, Form 10-Q, or Form 8-K. Now with that, I'm happy to turn the call over to Howard Lutnick, Chairman of the Board and CEO of BGC Group. Thank you, Jason.

Good morning, and welcome to our first quarter 2024 conference call. With me today are our Chief Operating Officer, Sean Windyette, and our Chief Financial Officer, Jason House. This is a great time for BGC. Today we reported record first quarter revenues and adjusted earnings, and last week we completed our FMX transaction and announced our strategic partners. These 10 major financial institutions joined us in the formation of FMX, investing $172 million at a post-money equity valuation of $667 million. Recognizing our success in the US Treasury and FX markets, their investment further validates both our technology and our vision to reshape the US interest rate markets. This extraordinary group of partners brings enormous value to FMX, far beyond this initial valuation. With that, I'll turn the call over to Sean.

Thanks, and good day, everyone. Our first quarter revenues grew by 8.6% to a record $578.6 million. reflecting broad-based growth across all geographies and growth across energy, commodities and shipping, rates and foreign exchange businesses. Beginning this quarter, we renamed energy and commodities to energy, commodities and shipping to better reflect the integrated operations of these businesses. Total brokerage revenues grew by 7.3% to $528 million, Rates revenues increased by 6.3% to $175.1 million, reflecting strong growth across interest rate derivatives, government bonds, and emerging market rates products. Energy commodities and shipping revenues grew by 32.1% to $118.5 million, driven by strong double-digit volume growth across our energy complex and environmental business. This asset class has become our second largest, providing additional diversification to our client base and macro drivers. Foreign exchange revenues improved by 4.8% to $84 million, driven by higher volumes across emerging market currencies and auctions. Credit revenues decreased by 2.2% to $87.6 million, primarily due to lower trading volumes in Asian credit partially offset by strong European credit activity. Equities revenues decreased by 7.7 percent to $62.9 million due to lower secondary trading volumes in equity derivative products, partially offset by higher cash equity volumes consistent with the industry-wide trends. Data network and post-trade revenues improved by 13.9 percent driven by broad-based revenue growth across fenix market data lucera our network business and capital lab our post trade business turning to fenix in the first quarter fenix generated revenues of 149.3 million dollars a new quarterly record these higher margin technology driven businesses accounted for 26 percent of bdc's total revenue during the period Fenix Markets businesses generated revenue of $127.4 million in the first quarter, an increase of 3.6%. This was driven by higher electronic rates and credit volumes, along with stronger Fenix market data subscription revenues. Our Fenix growth platforms generated first quarter revenues of $21.9 million, up 26.2%. primarily driven by FMX-UST, Portfolio Match, Lucera, and Capital App. As a reminder, Fenix-UST is now renamed FMX-UST, part of our FMX product suite, following last week's transaction. FMX-UST revenues increased by over 33% on a 21% improvement in average daily volume. FMX-UST grew its market share to 28% in the first quarter, up from 26% in the fourth quarter of 2023, and 21% a year ago. FMX-UST continues to be the fastest growing U.S. Treasury's platform, with its market share increasing one to two points each sequential quarter. Portfolio match more than doubled its U.S. credit volumes versus a year ago, These record volumes drove revenues 87% higher. Portfolio Match continues to increase its market share in this rapidly growing segment of the market. Lucera grew by 36%, primarily driven by new clients and expansion of existing client agreements. Lucera's subscription-based revenues have consistently grown by strong double digits. Capitalout generated revenue growth of 40% driven by higher interest rate compression activity. Turning to our outlook, I'm pleased to provide the following guidance for the second quarter of 2024. We expect to generate total revenue of between $520 and $570 million as compared to $493.1 million in the second quarter of 2023. We anticipate pre-tax adjusted earnings to be in the range of $120 to $130 million versus $105.5 million last year. With that, I'd like to turn the call over to Jason. Thank you, Sean, and hello, everyone. BGC generated total first quarter revenue of $578.6 million, an increase of 8.6% as compared to last year.