Tradeweb Reports First Quarter 2021 Financial Results

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Tradeweb Markets reported $273.4 million in quarterly revenues, up 16.5% year-over-year. The company achieved a record $1.06 trillion in average daily volume, an 18.0% increase from the previous year, with significant growth across multiple bond categories. Net income rose to $81.6 million, a 30.5% increase. Adjusted EBITDA margin improved to 52.0%, generating $142.1 million in adjusted EBITDA. Diluted EPS was $0.33, with a cash dividend of $0.08 declared. CEO Lee Olesky noted strong client engagement and electronic trading adoption.

Positive

$273.4 million quarterly revenues, up 16.5%
$1.06 trillion record average daily volume, up 18.0%
$81.6 million net income, up 30.5%
Adjusted EBITDA margin improved to 52.0%
$0.33 diluted EPS, cash dividend of $0.08 declared

Negative

None.

04/29/2021 - 07:00 AM

Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the quarter ended March 31, 2021.

Tradeweb CEO Lee Olesky (Photo: Business Wire)

$273.4 million quarterly revenues increased 16.5% (13.9% on a constant currency basis) compared to prior year period

$1.06 trillion record average daily volume (“ADV”) for the quarter, an increase of 18.0% compared to prior year period with ADV records in U.S. and European government bonds, mortgages, rates derivatives, U.S. High Grade bonds, U.S. High Yield bonds, European Credit, Chinese bonds, Repurchase Agreements and European ETFs. Tradeweb share of fully electronic TRACE volume for the quarter was 10.1% for U.S. High Grade and 4.0% for U.S. High Yield, compared to 5.9% and 2.0% respectively in prior year period

$81.6 million net income and $101.6 million adjusted net income for the quarter, increases of 30.5%, and 19.0% respectively from prior year period

52.0% adjusted EBITDA margin or $142.1 million adjusted EBITDA for the quarter, compared to 51.0% or $119.7 million respectively for prior year period

$0.33 diluted earnings per share (“Diluted EPS”) for the quarter and $0.43 adjusted diluted earnings per share

$0.08 per share quarterly cash dividend declared

Lee Olesky, CEO of Tradeweb Markets:

“Tradeweb experienced sustained momentum throughout the first quarter of 2021 thanks in part to stronger client engagement, changing user behaviors and accelerated trends in electronic trading adoption and innovation. We averaged more than $1 trillion per day in trading volume during each of these three months, which was especially remarkable given the quarter’s relatively subdued volatility. Our first quarter’s record volume was driven by changing behaviors, which we believe will continue to fuel our growth over the long term.”

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