NASDAQ$IBKR

Interactive Brokers Group · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Interactive Brokers reported diluted earnings per share of $0.60 and adjusted diluted earnings per share of $0.69.

Interactive Brokers Group reported a decrease in net revenues to $532 million, but an increase in commission revenue driven by higher customer trading volume amid market volatility. The company's strategic investments and currency diversification strategy impacted other income, while customer bad debt expense decreased.

  • Commission revenue increased 55% due to higher customer trading volume.
  • Net interest income increased 4% due to higher customer credit and margin loan balances.
  • Other income decreased due to losses from strategic investments and currency diversification.
  • Customer bad debt expense decreased due to lower expenses from volatile markets.

Headline financials

Total Revenue

$532M

Previous: $720M-26.1%
EPS (adj)

$0.69

Previous: $0.64+7.8%
Customer Accounts

760.0K

Previous: 623.0K+22.0%
Customer Equity

$161B

Previous: $148B+8.9%
DARTs

1.4M

Previous: 848.0K+71.0%
Quarterly Dividend

$0.10

No prior period
Free Cash Flow

$290M

Previous: $324M-10.5%
Net Income

$290M

Previous: $324M-10.5%
Operating Income

$510M

Previous: $697M-26.8%
Gross Profit

$532M

Previous: $720M-26.1%
Cash & Equivalents

$3.1B

Previous: $2.55B+21.8%
Total Assets

$75.8B

Previous: $63.5B+19.4%
Stock-Based Comp

$16M

Previous: $16M+0.0%

Revenue & EPS history

Interactive Brokers · Revenue · Quarterly

$532M

Q1 2020-26.1%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Interactive Brokers · $385M total across 2 segments · Q3 2023

  • Commissions
    $333M+4.1%
  • Other Fees & Services
    $52M+15.6%

Forward guidance

The impact of the COVID-19 pandemic on the Company’s future financial results could be significant but currently cannot be quantified, as it will depend on numerous evolving factors that currently cannot be accurately predicted.

Tailwinds

  • The Company is committed to ensuring the highest levels of service to its customers.
  • The Company’s technical infrastructure has withstood the challenges presented by the extraordinary volatility and increased market volume.
  • The Company can run its business from alternate office locations and/or remotely if a Company office must temporarily close due to the spread of the COVID-19 pandemic.
  • The Company committed $5 million to assist efforts to provide food and support for people affected by the COVID-19 pandemic in the United States as well as to advance medical solutions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

-1.9%

Avg return

5 days after

+3.0%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+13.9%

Q1 2014

Best reaction

-11.2%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%-2.5%+2.1%
Q4 2025+7.6%+5.4%+4.0%
Q3 2025-3.4%-5.5%-3.6%
Q2 2025-1.0%-2.3%-0.3%
Q1 2025-9.0%-11.5%+20.6%
Q3 2024-3.0%-1.6%+17.6%
Q2 2024-1.0%-3.2%-3.5%
Q1 2024+0.1%+2.2%+11.6%
Q4 2023+0.9%+1.6%+18.4%
Q3 2023-3.5%-6.7%-8.6%
Q2 2023-2.2%-0.4%+8.1%
Q1 2023+0.4%-3.2%-9.6%
Q4 2022+4.8%+2.2%+13.3%
Q3 2022+10.7%+11.6%+9.1%
Q2 2022+2.7%+2.3%+15.9%
Q1 2022+3.9%-4.6%-14.0%
Q4 2021-3.5%-7.3%-4.8%
Q3 2021+4.7%+4.0%+4.2%
Q2 2021+1.8%-1.9%-1.9%
Q1 2021-5.1%-5.2%-13.7%
Q4 2020-1.4%-0.2%+8.0%
Q3 2020+0.3%+0.1%+8.2%
Q2 2020+0.1%-4.1%+1.5%
Q1 2020-11.2%-13.0%-12.2%
Q4 2019-1.9%-5.0%+13.7%
Q3 2019-2.0%-4.3%-0.9%
Q2 2019-3.9%-3.0%-10.9%
Q1 2019-0.5%+0.8%+2.4%
Q4 2018-7.9%-7.5%+1.6%
Q3 2018+1.9%-3.4%+2.8%
Q2 2018+4.2%-0.0%-2.9%
Q1 2018-0.6%+2.0%+7.9%
Q4 2017-0.8%-1.0%+7.6%
Q3 2017+4.3%+3.5%+14.0%
Q2 2017-1.5%+2.6%+7.8%
Q1 2017-1.8%-1.4%+0.6%
Q4 2016-4.3%-5.0%+0.1%
Q3 2016-2.3%-3.0%+9.1%
Q2 2016-5.8%-5.5%-4.5%
Q1 2016+0.2%
Q4 2015-1.9%
Q3 2015-3.6%
Q2 2015-2.1%
Q1 2015+5.1%
Q4 2014+3.3%
Q3 2014+3.8%
Q2 2014-3.7%
Q1 2014+13.9%
Q4 2013-1.4%
Q3 2013-0.3%
Q2 2013+2.7%
Q1 2013+2.4%
Q4 2012-1.1%
Q3 2012+3.7%
Q2 2012+1.2%
Q1 2012-0.6%
Q4 2011-0.1%
Q3 2011-1.5%
Q2 2011-2.3%
Q1 2010-0.3%
Q1 2011+1.9%
Q4 2010-1.0%
Q4 2008-1.0%
Q3 2009+0.6%
Q3 2010+0.6%
Q4 2009-0.6%
Q2 2009-0.6%
Q2 2010-0.6%

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