Q1 2021 Cowen Inc Earnings Call
And thank you for your patience. It's dead dead. Dead. Dead dead.
Off off off off off.
Thursday. Thursday. Thursday, Thursday. Thursday.
Off off off.
Today's topic is scheduled to be there shortly. Please continue to gently right? And thank you. For please consult patience and you.
Then bye.
Joseph. Good morning, swing. Thank you for joining us to discuss Callins results for the First Choice. Twenty Twenty-One. Now I would like to turn the call over to the
JP Farley bends, head of investor relations.
Making forward-looking statements morning the statement that you all are subject joining us to the risks and uncertainties by now. You should just received a drive in the company of the earnings earnings release which case and other fun, be accessed filings with the acid. Investor d. C. Has not, no obligation to update the inquiry began automation. I would like to remind it on today, remind you that some is call the office today, is called all and some of the responses to your teachers, will referee questions for certain non-gaap measures.
We Believe, now I would like to turn the call information for Mr. Solomon disease, measures consistent with companies. Reconciliation has earnings release.
I'm joined today by our chair.
And CEO Jeffrey Solomon and CFOs.
Now, I would like to turn the call over to Jeffrey Solomon, Chair and chief executive officer.
On Thursday, in terms of Revenue Service record in the second Encore with the last song record in terms of both revenues and pooling and profitability, I'm passing of the previous operator weekday in the second quarter of the first year of the original, operating off the Third Bank and we generated register results and Investment Banking and markets, performing and press the perfect balance and management.
Was set new records for management fees as well as carried interest and incentive fees.
also, please note that as we exhausted our sales,
In 2020 and are now cash taxpayer.
In the first quarter of 2021.
Our financial performance pills upon a wreck of results in 2020.
And demonstrate, they consistent earnings power. We've been established over the past several years, correct with life issues, as well as strategic investments in our team and our capabilities.
And recognition of this fact, soccer's resent.
Nonetheless, we believe that our valuation is still compelling as the factors driving our profitability. And growth are not yet fully recognized by the market.
Our team continue to work hard to deliver results for our clients. Even as we continue to Grapple with the change on his working in a remote environment and the ongoing pandemic.
Here's some of the highlights.
Investment Banking, our momentum continue with the second row with the second consecutive record quarter.
Revenues were up over 190% year-over-year and the last two quarters combined, WE Post Office more than a half of the million dollars in revenues, which is well in excess of our total banking revenues for the entire year of 2019.
As we said before, Callens mission is to connect and advise aspirational investors too disruptive companies.
Sharon request to outperform.
Our team is delivering on this Mission and as a result, we are building long-lasting relationships are flying off.
In fact about 50% of our banking revenues in the first quarter came from engagements with for Peak life.
Patrick.
Well we were recently named the mid-market equity house year by International financing review off the third year running the true satisfaction. We have comes from knowing we're helping companies and investors to achieve their goals by doing what we do best
We also generated record, Capital markets, revenues of 239, comprised of, 161 nine and underwriting and 7709 Capital markets advisory business, which consists of private places. Yeah, and Equity, as well as private investments in public equity.
It was our second best m&a quarter was $56 in revenues driven by a number of large completely public deals.
M&a in capital markets advisory, combined represents, 45% of total banking revenues for a quarter.
I think discussed previously, the high level of Biotech Capital markets, activity Remains the persistent Tailwind for us at home now, but our bank, he's drinks is quarter, is really across the board.
oh,
Didn't leave the way with $162 revenues and we continue to broaden out. Our Healthcare franchise with 4943 million of that coming from tools and Diagnostics Medtech, and Healthcare righty, which we were referred to collectively a future health.
We're also strongly growing outside of healthcare. Posting the strongest quarter on record for our industrial GMG businesses.
And sustainability remains a key Focus accounting. 479 in banking revenues in the quarter.
Our quarterly non-healthcare revenues for the highest they've ever been at $131 million dollars.
for prospective, that's more than all of our non-healthcare revenues for any full year prior to 2019,
Surprisingly, it was a strong quarter for stock activity, which accounted for more than a third of our banking revenues.
Is worth noting. However, even without any spec revenues in the first quarter it's still would have been the second-best wage record for banking
I see previous free. Discuss our stock related businesses. Very balanced. Do you our strength in advance? I think those corporate selling these facts as well as back into these themselves.
Resolved, approximately two-thirds of our staff. From his comes from Anthony advisory pipes and back and advisory fees and only one-third comes from SPAC IPOs.
During the quarter, we continue to build out our team of a number of lateral hires, including adding additional senior leadership and our Healthcare Group.
And we're focused on ensuring that we have additional Staffing and resources necessary to deliver for our clients out of consists of like a high level.
Looking at. Would it be surprised at Capital markets activity, moderated somewhat, and the coming quarters from the dead or taste the past 6 months.
Nonetheless, we really? We believe we are well-positioned for continued. Strong performance.
Given the breadth and depth or banking franchise.
Even after booking all revenue in the first quarter, our backlog remains at a record high level. Double the size. It was the end of 2019.
Stock related businesses, making up less than a third of the backlog.
It is worth noting that even without any of those back mandates, the backlog would still be up 60% versus the end of 2019.
ATS, reminder Fallen Capital markets, transactions, which are meaningful source of our revenues are not included in backlog.
In markets, we had another record quarter with daily revenues of over three point. Six million for trading day off, sixty-six percent above the two point 1 million per day and the first quarter of 2020,
And almost 40% above our full year, twenty-twenty average daily revenues.
They all are volume based Market activities were up significantly year-over-year which is remarkable. Given a comparison and includes a huge volumes bike. Sison March 2020,
No, I'm us execution. Was up 42% year-over-year.
Electronic trading was 33% in cash. Trading was up 26%.
And we're seeing promising early growth.
N r. A d r Trading.
That's a situation trading had a very strong quarter as well, particularly given the high levels of trading in January and February.
Interest institutional Services business security, sedan, strong performance, including solid growth and jobs growing swap.
Brian brokerage which includes Alpha trading was also a standout of the first quarter with revenues up 41%.
Want to have rewards during the quarter for best source Trading.
HFM and hedge leak.
Our position and Marcus is service stronger.
Without perform competitors, by any challenging market conditions and Walla results will show partially depend on overall trading volumes. We are consistently hitting higher highs, and lower lows, how and higher lows, sorry.
We're off to Sean for sorry for the, for the year. And even if Market volumes declined and revenues pulled back to a low, two million per day,
Brian Ray a lower two million per day, run rate, we would still generate the same Market revenues, we did and record year of 2020.
we're also looking to expand our execution capabilities across additional asset classes, 2018 client, a mass
We'll have more to say on this topic, in coming quarters.
Research. We continue to be both prolific and forward-thinking.
Given our ongoing focus on sustainability. We became the first major Wall Street firm to commit to place a wager. Yes, she's for every company.
I never company research report that we published.
Well, our energy sector coverage transformation with the initiation of 17, stocks in the Black Hills, just gases Rare, Earth and battery and EV charging technology fields.
In the quarter, we published twenty ahead of the curve. Sears Imports overall,
From an analysis of President Biden's first hundred Black Box alone.
On our success to continue to the hiring and wage by hiring and technology, and bio-technology security, cyber seafood and charity Healthy, Living food, and and manage Healthy Living are dead, will be further into care. Expanding our research efforts can be Frederick's. Are areas of. Any are research-based in the efforts to bring quarters in our areas to focus in the coming Festival orders. You made considerable progress, both financially and invested and operations that we make considerable progress and cinnamon, yep. Yep.
Well total a look at it in our strategy billion after over a year, Capital Region, 14 minutes first, on our sustainability, look at it had nearly 1.5 million and eighty after raisin. Its first one up for sustainable, less than half a billion and had nearly first quarter of one hundred, twenty five, twenty twenty-five billion strategy strong for for order in due to the announcement. In a pending business office, I am one of his large Pavilions is portfolio in the first quarter but he's corrupt. The electric vehicle technology, firm strategy, Tara Strong performance due to the United States, depending on business, largest combination, but I want to be, shouldn't it kind of its largest incentive in portfolio, this court companies,
the electric vehicle strategy, technology for ended with $946 and almost three hundred thousand million your contribution 3-year account and also have income, the strong performance quarter
Hewlett parts for help several strategies and portfolio not a company's 698. Healthcare strategy home within your more than three point three year, 6 billion and also have a little stronger performance package portfolios. Most recent one hundred fifty million 3.6 billion and quarter total the phone. Mam are not currently open for new over 250,000 activist strategy and positive to help form. It's in the fair World Order strategy and is over most points in a game.
8.4 million year old quarter and the merger of the following strategies are not had 300 currently open for five million for new commitment in a home from 4:16 to the strategy, 6 to Performance year-over-year. First quarter to rebalance is over, 6.6 the name,
Strategy had positive performing 5 from for the quarter 5.4. Well, a million year-over-year turning 2935 millions that we intend innate amount of time and 1/4 in value of our need from 469, Wireless B6 company, income wage year, over $79 a year for a million. Do you want Parts 9.7 million higher than the first order of head funny positive. Same situation as well as strong subscriber code during which has 19,000 in value tend to monitor the former size. You need any of those two million dollars and wireless 41 bus company point four million linkem was dead.
When it's to repair, horrible, horrible bit off on Thursday, I want to grab some drinks and rankings and markets and reading banking or markets and reached Piazza garage code segment. The option to go to the project. Investment is two months later and investment strategy off. Economic ahead and come back home again. 682 eat five point, six hundred million 5.25, go pre-owned income, 1509 a mechanical problem with a hundred ninety-eight point. Five. On the king of million was a hundred and forty second come with nine hundred million dead.
And economic nine operating in an income was acting on like 140, operating income. And million of them was 100 the first quarter of a million for the athlete had economic income asset. Cose to go ahead, economic point to make income million proceeds or second on the million income reaches of one back. Second on someone else. Off of one, in economics, fix McKing come in economic and and that cooperating economic income loss. I mean I cannot one operated Millions. You can come over all the cases reported over attacks all basis you know, king would report on the 190 188. 5.66 million percent be charging $28 from a $1 of 10% 9 million time in the price from a water. Of 10.9. Yep.
You know, how much. And that have economic gains tax? The taxes, that often they come bosses aren't utilized. When he twenty, is all available on that. Operating economic income tax has been to the first quarter back to the first number of 20. 20 21 economic if you can come without 240 million. Two point 1 million years, I've been 42% point four million, four million, first quarter, 20, 26, 27, 1% mark up from a purchase of 12.6 million. Twenty One am here. Just 12.4 economic operating in. On the job.
Operating in May 29th was $100.44 more, a 20-second compared to a loss. A 27.1% margin the price.. Total economic point in the price increase, Sia. 226 little exercise, 2086 /, 7 .0 B million a year for Direct Banking link formula proceed with the quarter. 96 economic percent from the bathroom for the year. 1993 956 million economic brokerage 193 boss over 25, strong economic. 10% brokerage will be used and it's over 200 Truong top twenty one month.
1.
House and share hundred Sixers thousand or twenty dollars twenty or Twenty $6 billion include being purchased a million in executing purchase extra package. Included existing. According to our be five, more existing plans can be five this one real, and the board, approve, an increase in our, what approve is author, has an increase in wage and our favorite authors the million dollars and fifty million dollars. They are counting the first quarterly diluted. She was a weighted average or 4:33 was a weighted average age of thirty dollars, an increase of over six million. Mm, wait, it out a million years over the place. Increase previous quarters, due to the pets, wait, it out, and didn't convert but you know, this increase convertibles was due to the notes pending owners. Yep.
Copy the premium Owens convert washing trouble notes, into a lesser extent, the premium, the issue in portion of dark face, last order to compensate, she wouldn't go ahead and looking ahead and in the evening, copper equal to pretty income twenty-five with thirty-five. Maybe more percent of our opportunistic economic off, you can buy that wording income tax. Depending on Market can be maybe more additions. Endeavour opportunity available to confide back priority to return and the elbow cap one. We're able to monetize Google price asset. They are such as an additional capital. I will return over the longest one, where a program to monitor goal is to revise asset used to such, as the blanket, over the term of birth.
With that, I'll turn the call over to my account from it, Steve did? You can see it was an exceptional back over to Jeff. Well, some of these Tailwinds receive in coming quarters as you can see if we're still within accept a strong border continued, some of these Talent term growth am doing partying and coming to our leaders. We're still market for an oil changes and keep repaired Industries for continued with the tread long-term future do and Prospects parts, or by leaving market franchise is indeed ability key industry. We also have Road traction future Boston Acoustic Prospect sending product, catches capabilities and biotech. And since banking stain ability is institutional. So have you shouldn't robust and world-class expanding product research capabilities with our difference, bankrupt, cheated, and being as a management institutional and offerings, execution, world class. As I noticed research,
Just started the, with the recall We Believe, for any Market is fully committed to the reality of our business office. Caught up to the whole reality of our investment is a momentous. We've made in common strategic to talk until Traditions. We've trading in at riken and most of earnings multiple multiple the talent and investigation work. Since we've made team, are likely to be strategic continue to deliver decisions. We bring out Santa taken and results for most important all of our Chevrolet, the talent and hers education. As we look at our team had to the our license of twenty-twenty continues. Only one delivering, We Believe many results will be able to all of our share return rollers more. As we love our book ahead email from 20% office. Twenty one says in the coming, we believe we will be able, we will own. So tomorrow. Of our birth
Focus on making sure that our team members will. Do you have the support he to use the city need to work in guiding principle, actively as well, that is served entered a so well remain healthy since last, wherever lunch, there working the safety, give our colleague, we will need to use their family. Same guiding pool, always principle. That is come first served us so well since last. And with smarts, that will open it up to you of our call for questions, leagues. Operator and their family, always it's Comfort. Reminder and a stick with that question for me to print up for questions, on your character phone. No to your query, my assistant her to ask us for the crowd and he want me to put your phone number.
Your question, press the pound key. When our first question comes from sumeet mody of papers Sandler first question, then comes from thanks for morning as most of them on the court, papers Sandler the last twelve months it seems like brokerage. Thanks good morning, keep saying guys getting stronger wage quarters on the point. Six order and early and rub me the last
Okay.
I went to a third know open or cash flows, we will spend lie and you know, on the goal is to 5. After you just shrink the deck, you think that's account appropriate level and you can come back. I will. Absolutely. And that will be in a $25.00 to it. I think we were out of our clothes that were, we will be from a book banned by your story on be too and earning stock BuyBacks story. Excuse me. Think that's an appropriate and knows level. And we've all part deal apps are just some of the loot Lee can. Can you to buy a home in stock for the uh, you know, you and your I think colleagues. Have we recognize as that people moving from a book ignite that book value story due to every two hundred and so am I sent in this time and in in in this small part script that due to some of that deep. And so let some of the recent search that you suck.
And you're calling Live Edge and a cheap, and so increased. I spent a good portion in my life, learning how to achieve record. So if we continue to power generator of the cash flow, you will be deleted by you to see us by stock, back in stock package. And I think the, the issue of that increase these two fifty million, which is a record in terms of willing, out of our ability to buy stock back is an indication of that month.
Thank you. Thank you.
Next question.
Thomas Q from our net Devin, Ryan of homes from Ryan. Secured one moment. He's one moment.
How are you guys? How are you guys good? How are you doing great? I'm doing, maybe I'm great big a little bit. Maybe one of the Investment Bank, being a little bit on the, the Outlook Bank of the back long commentary, while, I appreciate these, they may be to your the out to look at touch on the staff of the backlog and Market comment. You highlight them, but maybe we need to have a great business there, you know, touch on SPAC and Market, which if you how you see people. Okay? I'm just pulling out clearly here just with no already. A little bit of business that you screw in the and then also some investment and I'm Victor fatigue.
The pipe side, curious, how you guys have been used selectively around the sponsors. The things that you work with playing out from here and so, more protein, you feel, obviously in the angle a little box as soon as this is screwed me to me and then or an opportunity, maybe else we need to be system and destroy the key down the pipe died. You know, you go to the the mentioned are not as Alexa. A strong play around with a little bit of perspective. I guess, I'm just giving it more protein, guys, have a strong from the angle position, plug is this create jobs before. I think that, I mean, the office first quarter, you can see a little more we continue to select if the sponsors have a strong family. Yeah, the only choice
If it works, and that exact Market, they always see no longer term, I mean, the towards you can actually deliver Popeyes, the end result, nobody predicted that all the investors, I can, you can see him. And so we continue to be selective with the sponsors, we choose the way. A lot of people only front of the only part that works in Parts. Back Market is we, we, we know that we needed term focus, our energies in our deliver Parts, on the budget. Original sponsors per in the market. All the deliver, the doctors over the results over time a long haul, my vehicle that will continue to weigh. A lot of business, will the front of regardless? You are so the slow. Yep. You spell Eucharist need to focus, our sense of energy doing this twenty-four efforts on the viewers. They have that. Stores in the morning which they deliver a lot of money for this resolved and then. It's over the long time.
40% any incline princes and what we used appliances, they do then, you know, around 8 till the past week, we budgeted to expect the doctors on the desk, get off the back half in the first meeting back in but not with the level that they were before. So yep, you know the gravy. I leave it there. Yeah, we rank. You got home. You know what we do to do. So, you know, as long as you do,
Steven chubak.
Okay, great. I will leave it sir. Thank you. See you still had a good morning.
SI for Thursday, early, ER discussion Stevens too. But how to fix normal condition of objectivity to you? Please did know that you're not going back to pre morning, COVID-19 loves balls in terms of wage brokerage drive to do per day. So certainly encouraging to hear the commitment first page at the same time, or Sunday, early easier mentioned in the two minutes into in your remarks, how to fix. I'm just about to normal. Yep.
Ibroker. You that activity more representative of a few did put that in terms of what you're not going back to print? Or is it your birthday or expectation of your new terms of what normalize certainly encouraging to hear that commitment? I mean, you know I think that's a great day at the same time you did in this is 2 million and I mean, they're prepared. I don't know what marks the volume this month. So I don't have a U football is more representative of a floor in terms of what you think you can generate or is that your <expletive>, your expectation, in terms of what normalized started out? Like, you know, I think that's a month.
Yeah, it'd be nice less than that. I do for the remaining. I hear the year. It's it's hard to see. I mean listen life is great. It's going to depend just on Capitol. I mean, stop. Nice to hear. Also about the commitment to 6 to maintain a healthy leader panels of the bag. You know, now that you've opted-in started back and just keep seeing this year and free cash flow that you guys are generated here eating, if you can, just give us another joke. I'm just like, okay, great and priority and then just somewhere on Capitol more management. Typically your eyes and appetites nice to be extended birth.
Organic way, but the commitment to. Yeah. I mean, I think paying pretty the guide. 50 levels. The buyback or somewhere actually giving me. Now, did you move largely optimize your life? I can just give them enough cash flow that you guys are in a meeting. If you can just give us up-to-date on just like your Capital priorities just more and more FAQ specifically with your appetite. Maybe expand cash organically back to, you know, the rep gave clear that certain elements that were actually give our earnings being that meaningful. Not guidance is readily turns way in terms of the cash as we mind I think at those as we mom
Are you guys you can expect from? We'll just we'll continue with those BuyBacks to generate trust, back to the cash, to the bank. Or we can clear things that are not readily doc, turned into cash. So eight people Cheryl is listed. We again achieved reasonable for us to be able to talk about the positive value. Actually we will continue to do that. Earning wage
Peter. I'm sure the reason why we made the comments in today, you know, it very rarely talk about the value of the stock. And then Thursday, through the positive, reading the script is very clearly directly think the socket buy cheap. So as we have positive cash flow, we will continue to be aggressive about stock. So I had a dog.
You are next question will come from Chris Allen of Compass. Point. Pub is open.
George.
Terms of where it's second. Quarter is running it today data. I mean,
Socializing that verse Devon cons, you're saying across the industry.
Yeah. I mean, I I think what we would, we generally give you what we're, we're running north of that minimum number by being pulled off during April. So you know, I, I think it's, you know, what we've done is dark places for a bring you to forward to today's date. And and, and, and so, you know, the number I put out their war north of that, number on a daily average basis, for the month of April. And it says, a lot, a lot of faith in April. So, you know, again, it's like, I feel comfortable with the, the guidance that we give it an a dead.
And then just type in the stock side, I just wonder if you maybe Parts. What are the, what are the the pipeline shrinking? The pipeline that were the kind of opportunities made industry? Perspective are currently.
Yes, I think it's a couple of different areas. You know, mid-market m&a, we have a significant amount of all sides that we get the launch. I think that's something that will least back to happen as the economy turns back on and and sponsors starting to become more active. So I I think you'll see really continued strength there. I think this page seconds will continue to see a shrink there, and we we've we actually made a couple but now it's already dead in the, in the month of April was the meaningful of a transaction occurred there.
And again, I I want to highlight to you and everybody, you know, the convention for the way that we were dead or our banking numbers. You should really think about Capital markets advisory and m&a as the same we we do it a little bit differently in in in our reporting that many of our peers but if you were to compare us to the service advisory firms, you really feel look at Capital markets advisory business and m&a and the same bucket that's $139
Right for the first quarter which is a record by alot and the key is to look at the the same as because, oftentimes, they're tied together.
What we're doing a Destiny and seeing that may be tied to an m&a or we want a piece of definitely seeing that the cash out refi. Yes. And nomics of a dent advisory are very much look like the economics of of birth and the name visory business and our competitors will need put their advisory business out there cuz they don't have Capital markets business is a lump them together so I I think one of the things that we try to do is break that out for you even though you know we we we report them as part of capital markets, you should really look at that because that to me is dead.
Indication that we're, we're showing meaningful strength in our advisory business.
Away from Capital markets, traditional underwriting business. And I expect that to continue to all should be strong. I can't think of a point in our history where we been less dependent as of making franchise dies on Capital markets, traditional underwriting activity and is it shows the breadth and the depth of Investments we've made and personnel and teams and and and and and so I just took it take that opportunity to maybe extend the comment a little bit more to highlight that to you.
Thanks, that was it for me.
Thank you so much.
Thank you as a reminder to ask questions. You will need to press star one on your telephone am requesting. Please press the cat pound key. Please stand by her next question.
Hello, next question comes from Michael Browne of KBW.
Great. Good morning, Jason Steve.
Hey, Mike.
So does the CVS on the target to shift to a an after-tax basis from home tax basis? You know? And I guess I wanted to follow up on a huge question about kind of the where you made life focusing for growth and
Business. But a little bit more from a organic standpoint obviously in the region years. We've seen a lot more benefits of the diversification of the business and you know see phone record results across brokerage Investment, Banking management is great to see. So you're throwing up like a slow here.
So, we're we're kind of the next leg of growth for the deck side of the business, where are you looking to, you know, put the incremental investment still focused on the advisory business name is Shirley look you to continue to grow. Maybe Prime brokerage curious lets, you know, top of like I'm free.
So with with Industries, I think that's really very key driver for us to Cal. And we we talked to look first industries that we think are going to be disruptive, you know, in part because that's sterile name is G, that we'll need our products and services regardless of where they are. So in the, in the script, I went through some of the areas were highlighting and research in particular, would increase investments in health care of sustainability.
Wood.
Sebi, he drivers for us. I think, you know, expanding into health care services for the first time and it took away our and along time with the hiring of a senior analyst. And that area took it in this sub-category of life. Science is generally, the real growth in tools and Diagnostics, which I don't think people understand. Actually, you know, we tend to lump everything together, but people tend to lump everything together when they look at and biopharma there's a real difference between sort of the Dead.
Drug Discovery, part of the business and the tools and Diagnostics start with the part part of the business. And we made some really good basses. They're both dead banking in the research side. So, so you can expect to see us continue to to to show strength. Them are so the industrial side. We also cybersecurity we hired a new analysts and that area and we're seeing a Real Fashion there. I think it payments watching. And in those kinds of areas you'll see us continue to look at that because we think that is a trend that is still
Reasonably early.
And is so and we think will be disruptive for the next decade. So
history have one of those would be you know the areas I would I would highlight though. I would say just about every issue. We cover is undergoing some meaningful transformation. Like for example, what we talked about an energy transformation that is a very meaningful change to a traditional and we seen a lot of our competitors exit, the Energy Research business and it's dead. We we said that that is not going way. It's just going to change meaningfully over the next ten years and we need to be
Strong voice. And that the, the initiations we had in the followership that we have in terms of investment, life is for for companies that part of the reason why you see our cash brokerage business up meaningfully, right, exact size much more to research call, that's why you're seeing it being meaningful. Improvements are algorithmically trading capable part? Because, you know, they're very few people talking about energy transformation to kisi KO. That's going to play out over the next five to seven years.
There's so many winners and losers in that space. So, you know, when we look to extend our, our, our capabilities, uh, again we generally start with research is is the first place we talked about it off. The other things, I would say, you know, we're continuing to add now, for trading our continuing to see growth in Europe off the, the, the our European research product was down dovetails with our trading product. We invest in a few months, about eighteen months ago, those are really certain significant traction.
Yeah, I I I think that, you know, Europe is probably six to nine months behind me and I suggest in terms of economic regrow, so our view is that will see pick up in European business, both in the countryside as well as in mid-market m&a where we have a footprint there. So I think you can see a saline in as your life come back online towards the back half of this year there's a number of places where I think we can we can choose to lean in but but I want to be cleared everybody. These are really obvious adjacencies to call log.
Business is we are in.
And so when we, when we when we when you read analysis it come Frost about where places were making Investments home or where, where caching of those teams knows individuals to two trains are already moving and that we're we have a high degree of confidence in our ability, to capture a market, share and margin and and so I hope that answers your questions. Maybe a little more lengthy than you a Thursday. We're thinking about this twenty-four hours a day, seven days a week.
Oh, that was great. Thank you for. Thank you for all that color. Is it just this one here. I'd like to hear a little bit more about the stock trading business, you know, I think it's dead.
Really impressed to hear that. You know, you're the industry leader there and end in the back of the available to retain that position. Was just giving a lot of the larger players have much higher volumes in this space. So I was just wondering how long it share a little bit about, you know, without giving away Special Sauce. What kind of has name is Alan such a such a force in the SPAC, creating space off, whatever your abilities that that you can offer investors that others just haven't been able to to log.
Thanks.
Partially. We've been doing a longer than anybody else has. You know what? No one cared about Stacks. We were, we were trading off the flow of that space know. Now, already cares about the facts and you go to the market near where the market leader.
You know, I I, I think and I've I'm a lot of respect, but I've been, I've been, I said, public life. You know, I bought my first back in, Nineteen Ninety Six. No one cared about it until 2 till, you know, whoever else he months ago in the meaning, for why we were great at it, then we're great at it now. And and so I'm just just look at it. Anything else on the market explodes? If you have a pole position and you got the right, connectivity with your you just seeing clients, you can penetrate that. I also think it's
I wouldn't be clear it is.
Super integrated into our Equity franchise.
And that's also something that different right when we when we have built our our Equity franchise, we built it with an idea that is collaboration and connectivity. And we bring people into the organization, who who fundamentally are are intellectually, curious, and want to be able to understand product and bring that product to their clients, Thursday. We, we, we have a premium for cross-selling, an introduction. We also have a team approach Thursday. We're we're when individuals on that our sales team or sales trading team,
Are introducing new products Disick lot of effort to that, you know. So so no one really has to be worried about, you know, the contention that goes on inside sales forces all the time, as a result, like, it's made life easy for us to recruit.
I, I think if you're in the equities, does this.
And what our sales sales trading or Trading.
You want to be an accountant?
And that's real. Talk enough about is a difficult Market in June. And and there's a lot of people out there in this, in this business. They're just not happy where they are.
When you?
Look at the energy and the and the effort on the collaboration that goes on. We're we're taking me to share but people wanted
Allen want to be here because of the fact that we're winning and that momentum begets momentum so long. I look at the space after we may as an extension of that or representation of that, that is certain part of a bigger whole. It's really in a great position to the efforts of many, many, many people.
Okay. Great. Thanks for taking my questions. Thank you.
No, want to turn the call back. Jeffrey Solomon. Please proceed with any further remarks.
Well, thank you operator. Once again, I'd like to express my gratitude to everybody on our team here at caliber what you've done over the past. Year, certainly over the past quarter is truly incredible and I know there are days when it feels like you're working super hard and and you're sitting by yourself off. And we talked about this, you today's the day that is the manifestation of those efforts. And and I hope that everybody Alan takes an opportunity to read and digest the performance.
Because we don't get here without the individual efforts in the collective efforts of all of you. You really do you embrace our core values and vision, empathy, sustainability and tenacious teamwork, and without releasing those values and the way that you show them every day, we certainly would not be able to put the numbers out that way. But for our
For our shareholders. I'm looking forward to seeing more of you in person in the coming months, as we figure out how we return to the office in a responsible way.
It's been a long time since I've seen you face to face. And I think I I I've said too many of you I can't I can't wait for that. We're mindful of the fact though that our success is also dependent on all of our stakeholders, which included our clients and our shareholders, as well as our team members but also our families and our communities in which we live and work and we recognize that doing well on able to do good. And that that is part of our ethos here account and and it's part of what motivates us every day.
And so we're very fortunate position where we can share some of our success with the people in the community that says helped to get here. Thank you all for joining us and we look forward to speaking with you again, on our next call. Back in July, have a great day.
James conference call, thank you for participating and you may now disconnect
Dead dead, dead dead.
Joseph Choi.
Hong Kong.
Bank.
Apple juice.