March 2015 OTC MARKETS GROUP

Similar documents
OTC MARKETS GROUP INC.

OTC Markets Group Inc. (OTCQX: OTCM)

OTC MARKETS GROUP INC.

OTC Markets Group Inc. FIRST QUARTER 2018 EARNINGS CALL PRESENTATION

OTC Markets Group Inc. FOURTH QUARTER AND FULL YEAR 2017 RESULTS

October 2018 THE COST EFFECTIVE WAY TO ACCESS US INVESTORS

OTC Markets Crowdfunding Overview. March 2016

OTC MARKETS GROUP INC.

It is now my pleasure to introduce your host, Dan Zinn, General Counsel. Thank you, Mr. Zinn, you may begin.

OTCQX RULES FOR INTERNATIONAL COMPANIES

OTC Markets Group. Record quarterly revenues. Q115 Corporate services revenue rises 54% Operating expenses rise 18% in Q115.

Nasdaq Reports Second Quarter 2016 Earnings; Delivers Record Net Revenues(1)

NASDAQ REPORTS RECORD QUARTERLY NON-GAAP DILUTED EARNINGS PER SHARE; COMPANY DELIVERS NON-GAAP EPS GROWTH OF 14% YEAR-OVER-YEAR

Reg A+: An Overview. John Fahy. Dan Zinn. June 22, 2015 Dallas Bar Association Securities Section

OTC Markets Group Inc. (OTCM) NR Price Target: $30 Price: $29.80 Risk Rating: H. Sidoti & Company, LLC

February 2, 2011 NASDAQ OMX REPORTS RECORD FOURTH QUARTER 2010 RESULTS - NON-GAAP EPS OF $0.55 REPRESENTS 20% INCREASE OVER Q409 RESULTS -

Regulatory Landscape of Private Securities Primary and Secondary Markets in the U.S.

J.P. Morgan Securities Inc. Regulation NMS Rule 606 Private Client Services 2nd Quarter

Interactive Brokers Group Investor Presentation. Third Quarter 2017

Scottrade does not have or seek agreements regarding the minimum amount of order flow that the Firm routes to a particular execution destination.

OTC Markets Promotion Data File Specification

Disclosure of Best Execution Policies December, 2017

Interactive Brokers Group Investor Presentation. Third Quarter 2018

NASDAQ OMX ANNOUNCES FOURTH QUARTER 2009 RESULTS - NON-GAAP DILUTED EPS $0.46 (GAAP DILUTED EPS $0.20)

Release Date Conference Call Time (Eastern) Contact Co. Guidance Consensus May 9 May 10 8:30am TBA NA $0.29


Disclosure of Best Execution Policies. FCC Compliance. December, 2017

1 Requirements for Admission to OTCQB

I would now like to turn the conference over to your host, Dan Zinn, General Counsel. Thank you, Mr. Zinn. You may begin.

Security Data File Specification

Global Markets. Fund Connect. Description of Risks and Conflicts of Interest. November 8, 2017

OTC Markets Compliance Data File Specification

OTC Markets Compliance Analytics Product Specification

Caution regarding forward-looking statements

Regulatory Notice 18-28

SEC Rule 606 Report Interactive Brokers 1st Quarter 2018

3Q14 EARNINGS PRESENTATION. October 24, 2014

The Casey Research BROKER SURVEY REPORT

Keefe, Bruyette & Woods Securities Brokerage & Market Structure Conference. November 2009

OTC Markets Group, Inc. Fourth Quarter 2016 Earnings Conference Call. March 2, 2017

FINRA 2018 Annual Budget Summary

We have the following recommendations to members that will help accomplish these goals:

RBCDS Best Execution Policy Client Disclosure

State Street Global Markets Canada Inc. ( SSGMC ) - Best Execution of Client Orders Disclosure

OTC Company Data File User Specification

Goldman Sachs Conference

ACQUISITION OF THOMSON REUTERS CORPORATE SERVICES DECEMBER 12, 2012

IGM FINANCIAL FIRST QUARTER REPORT FOR THE THREE MONTHS ENDED MARCH 31, 2018

Interactive Brokers Rule 606 Quarterly Order Routing Report Quarter Ending December 31, 2018

Interactive Brokers Rule 606 Quarterly Order Routing Report Quarter Ending December 31, 2017

Interactive Brokers Rule 606 Quarterly Order Routing Report Quarter Ending September 30, 2017

Section 12-1-Researching Investments and Markets

Morgan Stanley Reports Fourth Quarter and Full Year 2017

TD Ameritrade. Citi Asset Management Broker Dealer & Exchanges Investor Conference New York, NY March 3, Fred Tomczyk Chief Executive Officer

Morgan Stanley Reports First Quarter 2018

Morgan Stanley Reports First Quarter 2014:

IGM FINANCIAL Scotia Capital Financials Summit. September 11, 2007

THIRD QUARTER REPORT 2003

Q Earnings. GAAP to Non-GAAP Reconciliation

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ( Act ) 1 and Rule

INVESTOR PRESENTATION. Credit Suisse 18 th Annual Financial Services Conference February 2017

LPL Financial. Investor Presentation Q October 26, Member FINRA/SIPC

Nasdaq Reports Third Quarter 2016 Earnings; Delivers Record Subscription and Recurring Revenues(1)

Interactive Brokers Rule 606 Quarterly Order Routing Report Quarter Ending December 31, 2016

Interactive Brokers Rule 606 Quarterly Order Routing Report Quarter Ending March 30, 2016

Morgan Stanley First Quarter 2019 Earnings Results

Interactive Brokers Rule 606 Quarterly Order Routing Report Quarter Ending September 30, 2015

Best Execution and Order Handling Disclosure

52-Week High Trailing PE Week Low Forward PE Buy 8 Analysts. 1-Year Return: 1.1% 5-Year Return: 73.1%

Q Earnings. GAAP to Non-GAAP

LPL Financial Announces Second Quarter 2018 Results

Stephen S. Crawford, Chief Financial Officer Mitch Merin, President & Chief Operating Officer, Morgan Stanley Investment Management

TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade Holding Corporation. TD Ameritrade is a trademark jointly owned by TD

Logan Announces Acquisition of Stock and Cryptocurrency Trading System

Venues Receiving Significant Percentage of Total Non-Directed Orders:

SEC Rule 606 Report & Rule 607 Disclosure

Interactive Brokers Quarterly Order Routing Report Quarter Ending June 30, 2007

EDGA & EDGX STOCK EXCHANGES

On December 30, 2015, BATS Exchange, Inc. ( Exchange or BATS ) filed with the

The NASDAQ OMX Group. Q309 Earnings Presentation. November 5, 2009

LPL Financial Announces Second Quarter 2017 Results

Q Earnings. Supplemental Financials. September 25, 2018

Regulatory Developments

Q Earnings Report. Sabre Corporation August 4, 2015

Presented by: Mark P. Cantaluppi, CFO Reis, Inc. Canaccord Genuity 37 th Annual Growth Conference Boston, MA August 9, 2017

NYSE Group, Inc. Condensed consolidated statements of income in accordance with GAAP (in thousands, except per share data)

NASDAQ REPORTS THIRD QUARTER 2017 RESULTS; DELIVERS STRONG PROFITABILITY AND INCOME GROWTH

MiFID II Top 5 Venue Reporting Report

E*TRADE FINANCIAL CORPORATION ANNOUNCES SECOND QUARTER 2018 RESULTS

EDGA & EDGX STOCK EXCHANGES

SNIPP INTERACTIVE INC. SNIPP INTERACTIVE REPORTS FINANCIAL RESULTS FOR Q November 28, 2018 TSX Venture Exchange Trading Symbol: SPN

DR Advisor Whitepaper. Level I ADRs. A reference guide for issuers. November J.P. Morgan DR Group

Market Fragmentation: Does It Really Matter?

4Q15 EARNINGS PRESENTATION. January 28, 2016

Transcript of OTC Markets Group Second Quarter 2017 Earnings Conference Call August 10, 2017

Q Results November 2016

Management s Discussion and Analysis

Digital Turbine Reports Fiscal 2019 Third Quarter Results

Sabre reports first quarter 2017 results

Interactive Brokers Quarterly Order Routing Report Quarter Ending March 31, 2006

Transcription:

March 2015 OTC MARKETS GROUP

Note on Forward-Looking Statements Information set forth in this 2014 Annual Report (the Annual Report ) contains forward-looking statements, which involve a number of risks and uncertainties that could cause our actual results to differ materially from those reflected in the forwardlooking statements. Forward-looking statements can be identified by use of the words expect, project, may, might, potential, and similar terms. OTC Markets Group Inc. ( OTC Markets Group, we or the Company ) cautions readers that any forwardlooking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Forward-looking statements involve a number of risks, uncertainties or other factors beyond OTC Markets Group s control. These factors include, but are not limited to, our ability to implement our strategic initiatives, economic, political and market conditions and price fluctuations, government and industry regulation, U.S. and global competition, and other factors. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. 2

OTC Markets Group Inc. (OTCQX: OTCM) Our mission, vision and strategy drive market transparency so brokers and investors are empowered to make intelligent choices. Mission To create better informed and more efficient financial marketplaces Vision To expand the world of investment opportunities by creating the financial marketplaces of choice Strategy To operate a world-leading securities market 3

Our Strategy To operate a world-leading securities market Share information widely through open networks that foster greater transparency Connect broker-dealers, organize marketplaces & inform investors Deliver elegant, reliable & cost effective subscription-based solutions 4

Our 2015 Strategic Initiatives Reliability of our core systems, processes and data, with a focus on OTC Link ATS achieving full compliance with Regulation SCI Enhancing the broker-dealer trading experience on OTC Link ATS and the corporate client offering on the OTCQX and OTCQB premium marketplaces Increasing the breadth and depth of securities traded on OTC Link ATS and reach of our market data 5

Key Operational Metrics Total Annual Dollar Volume of all securities $238 billion 19% year on year growth OTCQX Best Marketplace 92% increase in OTCQX U.S. companies Including 34 banks Total Annual Dollar Volume of OTCQX securities $36 billion 22% year over year growth OTCQB Venture Marketplace 311 verified OTCQB companies 70% approved to continue trading on OTCQB Number of broker-dealer subscribers 122 4% year on year decline Five New Indexes 4 track OTCQX 1 tracks OTCQB As of December 31, 2014 or during 2014 Number of market data professional users 21,033 Approximately 8% of the Nasdaq UTP feed number of users Number of Corporate Clients 1,429 23% year over year growth 6

Powering the Marketplace Flywheel Broker-Dealer Trading Efficiency OTC Link ATS Company Trust & Safety Market Data Corporate Services Investor Transparency 7

OTC Link ATS 8

Efficient Trading How It Works Broker-dealers and regulators use our market data feeds, marketplace designations and issuer data to monitor best execution, apply risk checks and implement trading controls Investors can buy and sell through the broker-dealer of their choice, providing an electronic trading experience nearly identical to trading a NYSE or NASDAQ security Companies: Tiered marketplaces that reflect the quality of a company s operations, its management history, its level of disclosure, and its degree of shareholder engagement Broker-dealers: Electronic quoting and trading capabilities for a network of over 120 broker-dealers through OTC Link ATS, an SEC-registered Alternative Trading System Investors: The opportunity to analyze, value and trade a breadth of securities with transparent pricing, widely disseminated company information, and a system of tiered marketplaces 9

What is OTC Link ATS? OTC Link ATS: our SEC-registered Alternative Trading System provides a fully attributable, network-based model to its FINRA member broker-dealer subscribers to have access market liquidity in 10,000 U.S. and global securities Links a network of 120+ leading U.S. broker-dealers that provide liquidity & execution OTC Link ATS offers broker-dealer subscribers greater choice of trading partners, control of their Broker-dealers are required to comply with FINRA and SEC regulations Provides investors with an electronic trading experience almost identical to trading a NYSE or NASDAQ security Top broker-dealers on OTC Link ATS Archipelago Trading Services, Inc. / ARCA Automated Trading Desk Fincl Svcs, LLC / ATDF Canaccord Genuity Inc. / CSTI Cantor Fitzgerald & Co./ CANT Citadel Securities LLC / CDEL G1 Execution Services LLC / ETRF Intl FCStone Securities, Inc. / INTL Jane Street Markets, LLC / JANE Knight Capital Americas LLC / NITE Maxim Group LLC / MAXM 10

Market Data Licensing 11

Market Data Distribution OTC Markets Group sets the best price standard by broadly distributing our market data through top-tier distributors and financial portals The distribution network for real-time OTC Markets Level 1+ & Level 2+ Quotes includes all major financial data distributors Activ Financial Bloomberg Interactive Data Corp Morningstar NASDAQ Ultrafeed Investors can widely access market data through financial portals & online brokerages Bloomberg E*Trade Factset Fidelity Interactive Data Corp NYSE Superfeed REDI Technologies SIX Financial Thomson Reuters Morningstar OTC Markets Group TD Ameritrade Thomson Reuters TradeKing 12

OTC Markets Group Indices Our Indices are designed to help build visibility for the companies on our OTCQX and OTCQB premium marketplaces. Investors and analysts now have a convenient yardstick for measuring the performance of these companies over time. OTC Markets Group Indices OTCQX Composite Index (.OTCQX) OTCQX ADR 30 Index (.OTCQX30) OTCQX International Index (.OTCQXINT) OTCQX Composite Index OTCQX U.S. Index (.OTCQXUS) OTCQX ADR Index (.OTCDR) OTCQX Banks (.OTCQXBK) OTCQB Composite Index (.OTCQB) Investors can find OTCM index data at: Bloomberg Thomson Reuters OTC Markets Group 13

Reach of our Market Data Our OTCQX, OTCQB and OTC Pink marketplace designations are displayed on a wide variety of online brokerage platforms and financial information portals Financial portals and online brokerages that display our marketplace designations CNBC CNN Money E*Trade Financial Times MSN Money OTC Markets Group Schwab Scottrade Seeking Alpha ShareBuilder SNL Financial TD Ameritrade TSX We continue to introduce innovative services for broker dealers to have more choices OTC Compliance Data File is a comprehensive file of key compliance data points that helps broker-dealers and compliance/risk mitigation teams more efficiently analyze and monitor OTCQX, OTCQB and OTC Pink securities trading in an easily-consumable format. 14

Corporate Services 15

Our Tiered Marketplaces We strive to ensure that investors are well informed wherever they analyze, value or trade securities Best Marketplace Venture Marketplace Open Marketplace 16

The Best U.S. Marketplace for Globally Listed Companies OTCQX: ADDYY OTCQX: BRGYY OTCQX: BNPQY OTCQX: BDRBF OTCQX: CESDF OTCQX: COSWF OTCQX: DANOY OTCQX: PFSCF OTCQX: REPYY OTCQX: RHHBY OTCQX: SSDOY OTCQX: TFIFF 17

Strong Venture Markets Support Growth The Venture Marketplace 18

Making OTCQB a True Venture Marketplace The OTCQB venture marketplace offers transparent trading of entrepreneurial and development stage companies Introduced new standards for the OTCQB marketplace in May 2014 Meet minimum bid test of $0.01 Not subject to bankruptcy or reorganization proceedings Current in their disclosure Verified key company information For the first time OTCQB was opened to international companies traded on a qualified foreign stock exchange TSX, TSX-V and CSE are qualified foreign stock exchange Since its launch in May 2014, the OTCQB venture marketplace has gained strong momentum 500+ companies have been verified and are trading 1,600 companies remain unverified on the OTCQB marketplace 19

Financial Performance 20

Recurring Revenue Trends 1,800,000 Monthly Revenue by Business Line 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 OTC Link ATS Corporate Services Market Data Licensing 21

Operating Expense Trends 80% 70% 60% 50% 40% 30% 20% 10% 0% Operating Expense as a % of Revenue Analysis Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 General, administrative and other Depreciation and amortization Occupancy Marketing and advertising Professional and consulting services IT Infrastructure and information services Compensation and benefits 22

Financial Highlights for 2014 Annual Revenues $42 million 19% year on year growth Market Data Licensing Revenues $20 million - 38% growth 64% of growth came from price increases 10% increase in the number of professional users Expansion of enterprise licenses Corporate Services Revenues $10 million - 6% growth $0.6 million in new revenue from OTCQB fees 10% increase in revenue from premium services 7% decline in OTCQX subscription revenue Capital Expenditures $1.6 million 232% year on year increase As of December 31, 2014 or during 2014 Operating Profit Margin $4.6 million 55% year over year growth OTC Link ATS Revenues $12 million - 5% growth 20% increase in subscription revenue from new fee schedule 4% decrease in quote position revenue 7% decline in broker-dealer subscribers Dividends paid per share $0.32 Incraesed quarterly dividends by $0.04 during Q3-14 and Q4-14 and paid a special $0.50 dividend in Dec-14 Operating Cash Flows $12.5 million 50% year over year growth 23

Financial Metrics and Ratios for 2014 Diluted EPS $0.69 35% year on year growth Dividend Yield 2% As compared to 4% in 2013 and normalized for special dividends Adjusted EBITDA $15.7 million 42% year on year increase Stock Price $15.60 9% increase since December 31, 2014 and 100% increase from December 31, 2013 PE Ratio 22 As compared to 15 in 2013 Adjusted Diluted EPS $1.36 33% year over year increase Operating Profit Margin 32% Expansion from 25% during 2013 Working Capital $14 million 4% year over year decline As of December 31, 2014 or during 2014 24

Thank You For more information, contact: Cromwell Coulson, CEO cromwell@otcmarkets.com Wendy Fraulo, CFO wendy@otcmarkets.com FOLLOW US! 25