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Jun 30, 2021

Interactive Brokers Q2 2021 Earnings Report

Reported an increase in diluted earnings per share and net revenues compared to the same period last year.

Key Takeaways

Interactive Brokers Group reported a strong second quarter with a diluted EPS of $1.00, up from $0.40 in the same period last year, and net revenues of $754 million, compared to $539 million in the same period last year. The company's pretax profit margin increased to 72% from 41% in the year-ago quarter. Customer accounts and equity also saw significant growth.

Diluted earnings per share (EPS) reached $1.00, a notable increase from $0.40 in the same period last year.

Net revenues increased to $754 million, up from $539 million in the prior year.

Customer accounts grew by 61% year-over-year, reaching 1.41 million.

Customer equity increased by 79% year-over-year, totaling $363.5 billion.

Total Revenue
$754M
Previous year: $539M
+39.9%
EPS
$0.82
Previous year: $0.57
+43.9%
Customer Accounts
1.41M
Previous year: 876K
+61.0%
Customer Equity
$364B
Previous year: $203B
+78.9%
Gross Profit
$763M
Previous year: $523M
+45.9%
Cash and Equivalents
$3.22B
Previous year: $3.12B
+3.3%
Total Assets
$104B
Previous year: $84B
+24.3%

Interactive Brokers

Interactive Brokers

Interactive Brokers Revenue by Segment

Forward Guidance

The company's future performance is subject to various factors, including the impact of the COVID-19 pandemic and market conditions.

Positive Outlook

  • Committed to ensuring the highest levels of service to its customers.
  • Technical infrastructure has withstood the challenges presented by the extraordinary volatility and increased market volume.
  • Company can run its business from alternate office locations and/or remotely.
  • Higher commission revenue due to increased trading activity.
  • Higher rate of customer accounts opened throughout 2020 and into 2021

Challenges Ahead

  • The impact of the COVID-19 pandemic on the Company’s future financial results remains uncertain and currently cannot be quantified
  • Depends on numerous evolving factors that currently cannot be accurately predicted, including, but not limited to the duration and spread of the pandemic
  • Impact on our customers, employees and vendors
  • Governmental actions in response to the pandemic
  • Overall impact of the pandemic in the economy and society

Revenue & Expenses

Visualization of income flow from segment revenue to net income