Virtu Financial's 2022 Net Income Declined by 43%

[forex4you]

Virtu Financial's 2022 Net Income Declined by 43%

<p>Virtu
Financial (<a href="https://www.financemagnates.com/tag/virtu-financial/" target="_blank" rel="follow">Nasdaq:VIRT</a>), 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.</p><p>Virtu
Financial Reports Poor End of the Year</p><p>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 <a href="https://www.financemagnates.com/institutional-forex/virtu-financials-q3-net-income-declined-by-35-yoy/" target="_blank" rel="follow">revenues reaching $561 million in the third quarter</a>. 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.</p><p>"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.</p><p>16% Lower
Revenue in 2022 for Virtu Financial</p><p>In the
individual quarters of 2022, Virtu Financial reported worsening conditions in almost
every single period <a href="https://www.financemagnates.com/institutional-forex/virtu-financial-posts-6047-million-in-revenues-for-q2-2022/" target="_blank" rel="follow">except for Q2 2022</a>. 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.</p><p>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.</p><p>"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.</p><p>Watch the recent FMLS22 panel on liquidity between retail and institutional trading.</p><p>Virtu Shares
Reflect a Weaker Year</p><p>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.</p><p>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.</p><p>Other firms
in the tech sector are facing problems as they are forced to lay off their
employees. This week, <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" class="terms__main-term" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa" target="_blank">cryptocurrency exchange</a> Luno <a href="https://www.financemagnates.com/cryptocurrency/crypto-platform-luno-sheds-35-of-workforce/" target="_blank" rel="follow">announced a 35% reduction in
its workforce</a>, while <a href="https://www.financemagnates.com/cryptocurrency/robinhood-cuts-its-workforce-by-23-due-to-deterioration-of-the-macro-environment/" target="_blank" rel="follow">Robinhood cut 23% of its full-time positions</a> in August due
to challenging market conditions.</p><p><a href="https://www.financemagnates.com/cryptocurrency/vcs-not-interested-in-blockchain-anymore-as-funding-almost-stopped/" target="_blank" rel="follow">The activity
of venture capital funds </a>confirms the ongoing crisis in innovative industries.
Funding for blockchain projects almost stopped in the second half of 2022, while
support for the <a href="https://www.financemagnates.com/terms/f/fintech/" class="terms__secondary-term" id="891edcf3-475e-45f3-a8b8-3ba2e7d37339" target="_blank">fintech</a> industry <a href="https://www.financemagnates.com/fintech/fintech-funding-falls-30-worldwide-to-95b/" target="_blank" rel="follow">shrank by 30% to $95 billion</a>.</p>

This article was written by Damian Chmiel at www.financemagnates.com.

Source: Virtu Financial's 2022 Net Income Declined by 43%