BGC Partners, Inc. (BGCP) Q4 2022 Earnings Conference Call February 27, 2023 10:00 AM ET

Company Participants

Jason Chryssicas - Head of IR

Howard Lutnick - Chairman of the Board & CEO

Jason Hauf - CFO

Sean Windeatt - Chief Operating Officer

Conference Call Participants

Gautam Sawant - Credit Suisse

Rich Repetto - Piper Sandler

Operator

Welcome to BGC Partners Incorporated Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. Please be advised that today's call is being recorded.

I would now like to turn the conference over to your speaker today, Chryssicas, Head of Investor Relations. Thank you. Please go ahead.

Jason Chryssicas

Good morning, everyone. We issued BGC's fourth quarter and full year 2022 financial results press release and the presentation summarizing these results this morning prior to the market open. You can find it at ir.bgcpartners.com. Please note, you can find additional details on our results in today's press release and investor presentation.

Unless otherwise stated, any historical results provided on today's call comparably the fourth quarter of '22 with the prior year period, and compare revenues, excluding insurance due to the sale on November 1, 2021. Certain revenue figures are provided for the first 35 trading days in the first quarter to-date 2023. 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, plus marketable securities that have not been financed, reverse repurchase agreements and securities owned, less securities loaned and repurchase agreements. We define total capital as redeemable partnership interest, total stockholders' equity and non-controlling interest in subsidiaries.

BGC generated a significant amount of its revenue in non-US dollar denominated currencies, particularly in the euro and pound sterling. BGC presents revenue comparisons on a constant currency basis in order to present a better comparison of the company's revenues during the period, which exhibited volatile foreign exchange movements. BGC's constant currency movements assume no foreign exchange rates, used to determine the company's prior period revenues applied to the current period revenues. Please see today's press release, the results under Generally Accepted Accounting Principles or GAAP.

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 and 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.bgcpartners.com and in our investor presentation. We refer to the company's technology-driven business as Fenics. Fenics offerings include Fenics markets and Fenics growth platforms.