IBKR - Earnings call transcript Q1 2022 | Interactive Brokers Group, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Interactive Brokers Group’ First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised this call is being recorded. now today, hand IR. Nancy would to conference I host your Stuebe, Instructions] like the to over [Operator Director of go ahead. Please

Nancy Stuebe

first a the the our remarks, call, Good us asked Milan me call. you Galik, thank his but Q&A. joining again, quarter comments we us present our is on Once on afternoon. prepared conference Also XXXX will CEO. is for Thomas, After to have earnings business. And for joining today

may include beliefs call the statements, which which As their company’s today’s a not of forward-looking represent the are regarding by reminder, company’s control. outside events, future certain nature are and

the may indicated release. in actual and statements. our that forward-looking Our materially to from ask differ, in financial disclaimers these what is condition press We results refer possibly you

of review Risk contained also the filed in reports should a our with Factors financial You SEC. description

the months inflation limited inflation as one unpredictable first continued Europe was government’s XXXX, three quarter war many it the product issues, supply first geopolitical as levels news seen in high year, both and well issues the that be respond come. Persistent hike and on economic, rates. in with growth. except would shortages, how included to humanitarian The thing our the high of and markets interest the this more continuing for the has which since impacts, predictable absorbed ability its with was the this In in XXXXs first of only country rate chain funds of Fed not since expectations spending to deficit to

gets increases U.S. by X% each $XXX refinanced. billion on for As it as interest debt rise,

last pleased market faced that XXX,XXX We our strength were and which the how March. Few our very performed in we growth stay XX% accounts with we all with and of these all So with XX% Despite We even the and and increase in of business down client particular in X,XXX,XXX first from account Europe quarter inflation is a the were with record worldwide headwinds quarters segments events accounts. Asia, over us. three are unaffected this, in and the ended saw markets regions, with represent indices by quarter. to likely together geographic most quarter.

futures, our company options. risen up in the by market a with competition As commission, highest XX% Volumes the futures DARTs unusually base behind quarter higher grows, the highest so $XXX over the quarter a futures carry well. cost, of DARTs Higher in DARTs have last also of Products the our largest case In in X.X a led carry client to were commission are of also to U.S. likely fees, first trading this which higher revenues as commissions futures in active regulatory they up, second to period and history. rising taken in the company’s particularly in second only million, exchange, our million, and lack clearing due history, year. the

outright. in the business looking daily environment, than As an the vertical option, quarter volume over listed the a in cost less believe companies, In be industry, on quarter This XX time. a take to U.S., contracts to those period In to shares whose limited a appeals call ability in profile mentioned they and unpredictable had of continue to very I specific option to they average strong. give invest prospects and fourth risk first options of traders reward specific traders buy for our million the for the spreads if many record. volumes at on volume

of and the the larger from a and meeting resulting groups coronavirus distance gathering of impact public While on in ideas has including and the communications, the faded, electronic sharing by reliance asynchronous groups, XXXX more The remains. that trend oriented the online even have effect far analysts millennial, online concerned, become is net with technologically this is people IBKR as brokerage as of friendly industry in activities. investors,

this As potential of us, know, opens and a brokers. customers up Unexpectedly, you by investments customers platforms the Most managed wealth on our above the these for the new advisors may have is segment of XX. XX average of wealthier management age people. their larger conventional people of

to something with they Now to live that they their of ease accounts. would accounts see their to even them trade would and many themselves do. landing be in by and can are At Brokers, see this at like online able is sometimes do activities, a online it like Interactive

to they to accounts navigate sales is has their customers to their helping add environments own advisors to enabling let customers worldwide, become through by our ever The our known Brokers that rate team, to of as Our features high-quality continue we become better that, word them at superior over spread mouth, customer would offers efficiency, IBKR. greater personalized has them our Interactive institutional at work their XX%. ask well as at numerous and so to establish know tools. as task move experience platform of a our by better

In increasing the we account XX%, at our looking stronger addition, at this traders of markets. brokers at funds five to during attract again billion by clients followed XX% once account advisors last space financial This number billion and equity our We reassures at was helps $XX.X growth Individual all $X in X%. service. to capital fastest of XX%, year. introducing in customers types proprietary participate quarter, hedge this client growth base with XX%, the business, saw time at total that reaching the since larger funds and this has period, up grown even us

opportunities the in we about excited XXXX. are see We

in expect our this an account this focus GlobalAnalyst It Global investors XX and for currencies, Scanner, worldwide, allowing efforts around helps diversification. opportunities of quickly in world and on minutes, Trader introduced Global allows We which the year advantage take investment XX allowing spending investors again area recently place identify simple our continue increased over we marketing trading on different the We global and year. start to Trader, them. app continue enhanced to mobile users to with and a integrated over trading past that to open exchanges stock is

started a leaders with as also for free Radio, Traders’ our Workstation, thought the popular We Portal available and services. via featuring series financial interviews on is Client across mobile, and well Trader new Insight that services as IBKR podcasting podcast

and Our leading efforts carbon continue ESG now offsets. include

activities, will more to our come from with for higher and for purchase in Our Paul credits the on select Interactive that holding informed, will will successful is to retire clients through footprint of for XXXX their and and carbon We worldwide investors. their Paul? as of from the serve will offset our realization educational earn most call Brody, which list to With numbers their we a over quarter. to They money losing platform a believe who them, source turn innovative the with equities pre-set We all the potential will estimate aim and account. materials. can the go IBKR that, the best the the to Brokers I a platform people choice inflation return them cash that carbon to CFO, turn be to proposition.

Paul Brody

as first and operating our the second volumes reaching everyone, quarters Starting the as for revenues accounts million, Thank in of which strength Commissions discontinued of these payments Note our our in $XX loan we U.S. was million. both the the on IPO X% on and opportunities Options will as these $XX strategy options reflected non-core joining well items it their our quarter first then fees revenue while believe so called we which marketplace. million principal and million page in review and million. account for account the total up on for currency $XXX at for growth activity most as and offset the will strong, our to release, our results three have declined in volumes and with quarter Other loan usual, securities consistent segregated and XXXX, ahead. the on other thanks, rates generated reduced open you, $XX from of income market and quarter the up commission excluded risk call. are losses first our outpaced adjusted with are with fees balances, fewer stock in highest without liquidity the stock line were I us $XX well lower last this income Nancy, we includes quarter. item. income up spike. of pleased zero. fees in items we fees, items, near futures $X many were excluded that this $XXX million earnings, for of and diversification recently investments, Net at XXXX lending revenue ever the types higher cash moved by and positions revenue, results interest year’s in interest revenue quarterly of These portfolio robust higher customer reflected greater gains services meme million, from Declines tripling margin data remained volume. Exchange fee interest exposure interest and earned Other gains on questions. transaction.

futures X% Turning year, clearing led distribution carry from higher costs to last volumes, rose and by fees. expenses, execution, which

this schedules dropped a costs, changing that are rebates volume, As clearing trading the to bottomline. of combination revenues, of of commission by a revenue meaning -- percent commission fee and as driven percentage exchange a execution which and incremental XX% XX% quarter, were

While growth quality benefits our competing with to execution remain -- with rebates up Pro was this and to strong factors router in expense cost improve quarter lower ratio with dollar which its level. historical our Compensation drive for over smart in on support as over hiring XX% net IBKR time the the that it consistent revenues expanded product mix on gives exchanges offering we of opportunity terms time the while volumes, and for trading adjusted fluctuate clients. will cost, our and on compete place, our

G&A a quarter-end last was Brexit-related down versus costs Our headcount by non-recurrence expenses. legal expenses driven lower were $XX X,XXX. of in and million year, at

aid a included quarter Ukraine. toward This donation in $X million also humanitarian

of companies while our of robust operating margins sum invest Our income reflect $XX hire we as the was of talented public in expense adjusted the margin maintaining well million the pre-tax million. people future million a companies taxes key Automation the high control, business. XX%. of continued $XX and and $XX as remains our means

five and year, increases $XXX quarter, release, by were of and the page securities over in the our at the on to our with balance cash our billion of growth loans. assets segregated total the margin sheet end driven Moving last

$XX.X equity consolidated have long-term was capital Our billion debt. no we and

down first net remains Turning our in quarter and with and the significantly highest year. other largely and the versus contract pages ever options pink is seven, sheet volumes was strong, operating up all see stocks. low customers up the on XX% reaching ever on trading account active to reaching the drop-off futures On and account highest were robust year’s over very in the six our year accounts Stock over especially last in you to second growth XXX,XXX data page on our and seven, XX% for million, share attributable that the X% year. in total volume prior X.X adds the quarter priced can up

greater first We is our customer strong were that extreme per X% are day, X.X million adding last now XXXX. DARTs Total to surpassed pace in quarter only year’s accounts fourth highest trends. activity, over up at second company annual prior from history, but quarterly trades pace a quarter by than

up are Federal mid-March million week $X.XX due quarters well exchanges turned quarter, first average positive denominated open up offset from names order, charged unusually million, February, opportunities customer rates as commission the of million that lending. quarter, which carry Our January in two year. in investors was quarter. that mix months up bodes sold the presents both opportunistic had rate or will left the to first balances, three the clearinghouses. $XXX began balances short on $XXX for our U.S. hard securities and to quarter. XX dollar particularly interest a The to from have active rate we numbers. Page interest funds strategy, in positive, cost raise interest in to $X couple we a customers included be of $X year earned over than borrow some to about Federal more in balances. opportunities million interest interest the per last segregated margin of $XXX total. in Total positive on the rates well XX% more roughly cleared and impact margin quarter points last from was our interest ago continues year, the by but fewer ago quarter, a currencies by net these year impact as the our Reserve Net pass-through grew down reflecting this net earned the in fees minor net where negative, futures balances and cleared weeks of our IBKR higher $XXX last investment of positive customers Fed interest this proportionately balances higher XX% XX% credit Reserve eight GAAP basis on the strength million pay commissionable was customers. we full income X% see average in hike. There Margin because The lending the Pro with on margin as loan which products for on Interest These cash were interest to March. volume million XX our next in Securities We pass-through as in we fewer early lending down quarter, quarter. net year’s an clients’ paid by quarter, we are

increase increase estimated rate $XXX Fed the that addition is increases impact first March to the rates next The XXst, in second is we estimates XX last million had Note basis we in $XXX an point produce a is additional this already first rise for in for quarter. million that estimate funds our for our the occurred. to $XXX million increase for expect of hike in rates, the estimate and point rate the when Now starting XX-basis-point interest annually.

of This As expectations investment rates our any to into a in not About note that we current non-U.S. any asset. does larger our how our adjust account produce customer an balances XX% are in market or rates include may annually. take advantage in higher strategy increases, change $XXX rate XX-basis-point rise take dollars. would million additional of cash change newly we

changes it exclude reflecting start rate our year, expense U.S. take solid we first managing of ability advantage In of estimates grow customer currencies. change the conclusion, will and while they So our base, business those arise, questions. with the effectively for turn over the And a that, open we impact -- quarter will produced the continued control. with as rate to opportunities to to strong up moderator

Operator

And Instructions] Sandler. question comes And from Repetto Rich Piper thank you. [Operator first our from

now is line Your open.

Rich Repetto

Paul. Hi. eight XX there’s rate we would this the through. sensitivity XX the I Good has -- points to Paul, XXX, least When you do evening, the first with the points Thomas, just and looks question continues have had this forecast good next the understand, evening, interest to like consider guess trying that be to year the one, rate we at that, basis can went basis Fed and then going to it you say be hike an additional. second just one

sensitivity? So sort of we do could that that three would eight, hikes, be through you what apply call

Paul Brody

Right.

it customers about customer we on words, mapped call rate point tell sensitive -- the up are the that because balances points. XX incremental of per rate each That the three other rates $XX are rates increase. numbers I maybe incrementally earning year hikes and after spread. out that credit balances that about on fully rate and earning basis paying you In are credit we which is amount interest enough three stabilize and go haven’t are basis balances. now for million levels customers about we can earn incremental our at so all the what XX as not on the But interest that’s And after we So hikes we high their way out.

Rich Repetto

helpful. very That’s it. Got

Paul Brody

million. $XXX So had we

Now XX $XXX million for extra at points, points, we I the be $XXX basis that $XXX that basis are points that would XX said was next equivalent that $XX to million points. about incremental basis XX hence for the XX for looking million would basis be million

Rich Repetto

little I looks just is of given could grasp sort retail went you you tilted days of of sort understand helpful. is are size -- it investor evening, a Good last up and saw and the to had it the bifurcating is of view, investors and who I to strong, the these like trader towards size trades engagement, bit retail it Would still the some sophisticated is more the trading quarter pretty your your up of That’s of first sophisticated if futures. is. where looks year? more and the to the guide get if trying clarification newer in like it. Thomas. between Got sort people want us, And we

Thomas Peterffy

think sophisticated, and and are focus and tend the trading the sophisticated -- more as it’s they just more to vertical spreads. more away, what semi up in more more as tend course, do aside just is it within basically spreads, that market. options like in I they vertical of to of on So a about valid much are that And strategy we markets down is

even will trading. starts expect too we not of that we down, if from market suffer the lack going So heavily

Rich Repetto

Okay. I queue. will I in got questions, a Thomas. the but get follow back Thanks, up

Operator

And And our America. next thank question of Craig from comes you. from Bank Siegenthaler

Your now open. is line

Craig Siegenthaler

everyone. evening, Good Hey.

Paul Brody

Hi, Craig.

Thomas Peterffy

Good evening.

Craig Siegenthaler

Thomas. evening, Good

you that this will to, forward. believe I rate target Paul going continue in backdrop this conviction have remarks, So commented, in before organic into trajectory continuing attribute I challenging organic strong Overall, here and stronger versus much XQ. you XX% the the XXXX a Thomas, gives what prepared is more growth confidence that’s you and here? had around know But growth there, today a how what you do out and

Thomas Peterffy

tend be brokers be when join will possible not It’s words and the but the be have XX% they is Well, accounts and somewhat we in a show to target introducing in over the very we smaller I extremely pipeline, get don’t omnibus more we basically although going keep that so unlikely. will larger certainly accounts. that prospect, XX%. new those likely new was other they event accounts tend space think they fact But are bills. In as with growth prospect but the in my I to -- And the do happy XX%. us several and will be I to more account that they up believe account

to could account. be somebody it because just will as us, say, XXX,XXX accounts, is So, but account, join show omnibus up one one going with it

Craig Siegenthaler

then And there capital prime billion you shareholders Is size to business is is level accelerate sense. capital to balance capital, makes have now. of win fund critical? to That of return hedge and a where $XX.X can the just so have return, also capital you equity you turning one the the are much because where trying you reason sheet of

Thomas Peterffy

absolutely are right. You

to keep our going are the investing up firming capital of in We credibility and eyes public. the on accumulating

Craig Siegenthaler

Thanks for my taking questions.

Operator

Thank you. Jefferies. question comes And our Dan from from Fannon next

Your line open. is now

Dan Fannon

Thanks.

on thing Just rate to Paul, one want the sensitivity. clarify,

said $XX every So, to but in what that next to addition benefit, million first after, XX-basis-point of a for would it what is you hike will three, the think the two it? be hikes, the way be

Paul Brody

and assuming balances of change our balances will that’s But, course time, go if no Roughly. numbers in grow those up. over

Dan Fannon

How about backdrop? shift a was anticipate in haven’t shift changes, Right. potentially obviously, should but should investment backdrop thinking we upon philosophy, lot investment your that the today strategy than ago. are rate you based we see or it for And a backdrop rates that and three is given different progresses as you year a months changed the

Thomas Peterffy

No. No.

that slow strongly rate I hike will to to have higher believe due inflation. much fed look, that go down very So,

going X% or not I X%, negative that to X% Let’s still good negative right? or be at X% X% a being basically just and So enough. is going be up think

high for we lend that as that I not or to very could further X% going So very, rates and are money any short-term. X% for the as down think go

Dan Fannon

Thank you. Okay.

Operator

And you. comes thank our KBW. And from Voigt question next from Kyle

Your line open. is now

Kyle Voigt

I just clarify. want Hi. to

the think, -- I on? correct, that, Nancy, call has is is you the mentioned joined Milan that he for

Milan Galik

Kyle. That’s correct. Hi,

Kyle Voigt

call. the to Welcome Hi.

Milan Galik

Thank you.

Kyle Voigt

guess, you much IBKR to exposure investors haven’t had, I forum in historically because this Just before.

what a the five out share maybe opportunities operationally you of excite for years you the most if are years company? or on initiatives few, on the or spending the most kind what the segments could wondering, time the three of level that high you business, next state as Just then and look you thoughts over

Milan Galik

cylinders. So thanks Interactive question. feel like on for Brokers firing all is your I

a on. working that have of currently are lot We projects we

on We bit increasing spending scalability. are still quite a our time of

million to Our XX to goal XX day. trade is million able service be per accounts,

to to We be able close are hit getting numbers. those

investors, So to have scalability app We our might of seen, work. have Impact retail not we be continues as that part focus ago. you long the the released on

online Trader, just which have We marketing. the we put started Global

financial doing that should work is are we we appeal servicing retail will. most So effort amount There to if are into the putting of substantial client the a you advisors.

We their easier onboard are them making for it to clients.

service them clients. for We making are to it easier those

are the We more do allowed. their clients to advisors we going allowing work previously than financial for to be gradually

salesforce us doing Our brokers introducing a is accounts, getting example, for institutional accounts, great accounts. broker in job the high

the So that this we a in to going have are be pipeline year. we few on-boarding

We on facelift MobileTrader. a our are working of

trading desktop We going to we brand platform. are new products a And I as do. adding usually could be go on, are we designing

geographies to are We be international adding for traders. our going new

Kyle Voigt

thanks I side. That’s expense again. Thank for Paul guess you on welcome and follow great maybe for question, up a color. for that the for --

than to expense as $XXX so were your last XX% year type lower last compare for growth I which historical the, or growth in that to that and guidance the think year, only We or million think, $XX think which I in aggregate million range, fixed fixed expenses. expenses even Brexit the expenses of year-on-year, rate is first one-time quarter. as the was the quarter I closer so still well of excluding fixed X% range rate, is first

about should year-on-year of through we the expenses year? growth remainder how as in move this wondering fixed So we just think

Paul Brody

especially our in several design. ramped increasing up over last accommodate the by design, by been client growing also have we we but services, so So compliance staff years, have to business, that’s

you I stable, go. our because are fact the think. the it’s we down, rest G&A see you we expecting that numbers hitting those when come there see targets up And when there’s and and in fairly so are in that items and increasing, go And really are

to it As last way we those and Brexit about we didn’t this off. repeat in are regulated related spent came we getting was mentioned, numbers year Europe $XX that that million year

it’s be compensation may the continue overall to hard and employee to probably little So the a benefits. growth contributor rate. down pin largest But the

Kyle Voigt

it. Got

So it type this sense models? year seems of just the like too rate now fairly is be high-single get digits, or growth to of good assuming the that digits we is a of remainder should our is low-double trying it fair, for soon the growth rate in

Thomas Peterffy

that digits are closer think that high-single to the than the I digits. low-double target

we So to… are continue

Kyle Voigt

Okay.

Thomas Peterffy

in to where are subsidiaries. continue in establishing are We expand number and customer geographies service the of we

is would think increase that probably good So XX% $XX the guess. a I --

Kyle Voigt

Thanks, I hop the you. will Thank Thomas. in back queue. Great.

Operator

And comes Chris Compass Allen from thank question our Point. from next you. And

is line Your now open.

Chris Allen

could some I for Good pricing everyone. about in you balances, in the changes I Fed what if and had just Thank recent my was changes out was year-over-year. driven to know there. nice so pricing you I increase sequentially by what ask yields questions. you the am wanted also evening, parse by margin a driven on hike? wondering

Thomas Peterffy

to margin So X.X rates time over points were point X.X was quite that and what a we used ago between funds. Fed a our long in do

points basis That’s and increased have Fed over only points the between XXX so points fund. are -- the X.X XX change We basis that bottom we we have of made. that

Chris Allen

quarter? full impact Understood. Does on that the

Thomas Peterffy

Sorry?

Chris Allen

whole this first through fell impact quarter? that Does

Thomas Peterffy

Yes. Oh!

Paul Brody

Yeah.

Thomas Peterffy

you. Thank Yeah.

Chris Allen

costs. one, And quick a then execution just and on clearing maybe

fee going futures In a where away that execution loss of that that been activity, relative also running? had OCC impacted, just waiver the higher the they factor addition to in higher costs was clearing to

Paul Brody

I that, am sorry. Chris? repeat you Can

Chris Allen

had out ramped trying execution I the you went some of OCC through but figure to for costs, tail bit running, activity, from had obviously, higher a end of where clearing it which and attributed away. Yeah. the XXXX effect that waiver the that futures to mean, been fee

the differences what’s So, the trying figure to just out two, between there? driving factor the

Paul Brody

at Most of a the They driven year full coming them holiday somewhere the year by at. a the year put dropped which of Yes. It year. of it didn’t at the the There higher then from toward on started are OCC like rate, prior of $X back of an quarter. around that $X fee in the the middle rate they back. year probably was it in it end come quarter impact was the the to over part they higher the impact started Last because futures. million something and was doing middle, reinstated they volume million the fee the is reasonable now, for end that holiday such for last

Chris Allen

Understood. back in be Thank. I will queue.

Operator

you. Rich from Sandler. we up question Repetto have Piper follow thank And a And from

now Your open. line is

Rich Repetto

Yeah. Hello again.

Now that have in we question we for wanted a the know, well, Milan get on well. to call I as as him Milan.

Can are the highest you sets it how platform has platform Brokers you about your how see in really standard the So, of placed, technology your driving guess, I from which of priority, highest you I the some and differentiate? of Thomas the talk standpoint, technology Interactive success. And guess, apart peers? areas your from

Milan Galik

for Thanks question. Rich. the Hi,

our is industry. us technology the the sets I think view apart to what financial its company applies that company I fact set as a skill that

a have of lot programmers, we technologists working for So a the company. of lot

know, what may we and market doing Brokers as were you computer at the started making exchanges. Interactive options firm As systems was various an options for building trading

is core flows So the problems. That and at the technology. our them? is the most can force, are a profit we executing? are the that process and We task the apart company what what we on we make the can sales they that is the on of strong that clearly our scalability our that our which margin look automation, what to systems. change, ones, we do. the that are level company. and counting believe I increasing platform reviving We we you and have we continue And at as how clients can for will simplest sets process never high So we for how in a new nature. we are the obviously is see features XX%-plus to ourselves stability running we workflows, the tech going that question the the How mindset what That are intuitive but of will have very that’s us automate our the is forwards, That clients, into. a execute is ask older approach building

Rich Repetto

And one Thomas, the helpful. getting to got Very retail back Understood. for investor, last one Thomas. I

So a deleveraging margin some see trying a saw months, or in futures of balances go And to believe. contracting we bit understand, I just we did couple up.

stall, Russia, you seen of I know sort event have Ukraine, the We guess.

maybe with it’s So seems it for -- appears into market trading And of understand this stay more derivatives, next if couple quarters. trying we a as trading pretty stalled -- of the who’s on February same lot conditions but much now. like get in to period, the who that, there again, it just was

Thomas Peterffy

So, way is mean, the our sad for works three customers I practically for another us, it [ph]. look,

the like from straight trades less times in on, something the it’s the line. Fed year. there that doubles remaining So XX% account, the a a increase with XXX for three or very of up creates And customers surprisingly accounts and a in customer every where average in volume year. against XX% XX%, do the in $XXX,XXX these funds assets trading

Rich Repetto

Okay.

the sophisticated are more So as the active? traders, more are assets your -- semi-sophisticated ones traders with

Thomas Peterffy

You are right.

Rich Repetto

was Thanks. It it. helpful. All That Okay. was right.

Thomas Peterffy

you. Thank

Operator

a have America. of Thank you. Craig Bank from Siegenthaler follow-up we Instructions] And [Operator question from

Your line is now open.

Craig Siegenthaler

what account Eastern Asia the other any I Any the by or accounts that? redemptions in of interested had commentary it growth Europe for particularly wasn’t the Thanks accounts like on million mix a question commentary and follow-up. the I looked with of and closing in also way on clients XXX the on taking in geography. and new side on

Thomas Peterffy

there try year didn’t right? Futu -- have were drastically again, last and out? European Tiger than we it what in brokers have their some -- going away, So, that is you But were introducing and so to And find other activity broker they who this is exactly diminished would extremely what me redemptions -- tell active year. really the has --

Craig Siegenthaler

looked was the I that inflow understand just weight? hitting regions to there by their like out wanted any what were if geography,

Thomas Peterffy

as the, and away due I Tiger. the I going looking I so said, of Inflow numbers basically by due -- and at to well, geography, to annual the -- it’s the here Futu and am

-- for Europe is up Our so year, the that’s those unchanged from Asia up the roughly, are Americas, it’s Americas numbers. XX%, inflow the the and while from XX% in for basically it’s

Craig Siegenthaler

was last Thomas. But on you, was to And a question good I’d the Thank up operating It at commission backdrop. Kyle’s high expenses. have margin XX%. year follow

to This quarter dip it XX%.

You talked the really low operating in ceiling about expense the and also growth of capped the here? kind digit margin think I about we should how leverage? think think a about we really we in high zone. Should double where really XX%s are But

Thomas Peterffy

difficult We thinking have hurdle. exceed continues very these just days and the it COVID up growth happen But we new of continuing to to that we we the growth to exceed the backbone one the going haven’t keep to yet. on Well, new the the that built is that spending find things will build point hunger seen investments. that

year, this not keep that likely to the happen just it happen future, it on. may we and in so certainly far So thinking maybe later but is hasn’t

Craig Siegenthaler

Thank Thomas. you,

Operator

we Voigt a And have you. from follow up KBW. from Kyle Thank

Your now open. line is

Kyle Voigt

question Milan, the putting Hi. also how has my spend. be remarks technology-first about a IBKR growing Thank you Excuse marketing the company you prepared lot more spoke will marketing I up me. but a a about been and for and follow-up. has guess focus on been you follow firm, taking spoke always for the

and seems little could as emphasis look on this medium-term? couple in trajectory, the more I the over then. marketing about you. strategy, ahead strategy that you of more the talk a year, now if we there’s beyond marketing wondering, bit Thank guess, shift like past of the years, the over terms certainly spend The that Just in it

Milan Galik

we marketing we how clients for our is it. provider and cost of a It tell kind technology are, we about extremely doesn’t build what low matter obviously So if don’t important. anybody

So we have explain and very to the make investors. ourselves ourselves attractive to well

extremely is marketing So important.

that for and out, we work money and not and will from gradually the the marketing a times continue. do of ones the We various our into of pan have been type been and ones put doing receive all at well, our do pay increasing work channels well what take return spend, responsibly. marketing that spending enough, we we but gradually this At have we lot it us we attention not more back

Kyle Voigt

Thank Understood. you.

Operator

over showing no closing back questions. for I further to turn to Nancy And you. call thank the And now I would Stuebe am like remarks.

Nancy Stuebe

Thank for you participating today. everyone

replay you website this of will our site available tomorrow. our call talk version end. on we will a be next As for on Thank the and will a also clean be posting reminder, quarter transcript we and again to you

Operator

Thank concludes for participating. This today’s you. Thank call. you conference

now may You disconnect.

Interactive Brokers (IBKR) 20 Apr 222022 Q1 Earnings call transcript