Tradeweb Reports Second Quarter 2024 Financial Results
Tradeweb Markets Inc. (Nasdaq: TW) reported strong financial results for Q2 2024:
- Revenues: $405.0 million, up 30.4% year-over-year
- Average Daily Volume (ADV): $1.9 trillion, up 48.3%
- Net Income: $136.4 million, up 33.8%
- Adjusted Net Income: $166.7 million, up 34.7%
- Diluted EPS: $0.55, up 31.0%
- Adjusted Diluted EPS: $0.70, up 34.6%
Tradeweb set quarterly ADV records in rates, money markets, and credit. The company agreed to acquire ICD for $785 million, adding Corporates as its fourth client channel. Tradeweb also made strategic investments in blockchain and tokenization technologies.
Tradeweb Markets Inc. (Nasdaq: TW) ha riportato risultati finanziari solidi per il secondo trimestre del 2024:
- Ricavi: $405,0 milioni, in aumento del 30,4% rispetto all'anno precedente
- Volume Medio Giornaliero (ADV): $1,9 trilioni, in aumento del 48,3%
- Reddito Netto: $136,4 milioni, in aumento del 33,8%
- Reddito Netto Rettificato: $166,7 milioni, in aumento del 34,7%
- EPS Diluito: $0,55, in aumento del 31,0%
- EPS Diluito Rettificato: $0,70, in aumento del 34,6%
Tradeweb ha stabilito record trimestrali di ADV nei tassi, nei mercati monetari e nel credito. L'azienda ha concordato di acquisire ICD per $785 milioni, aggiungendo le Corporates come quarto canale clientela. Tradeweb ha anche effettuato investimenti strategici in tecnologie blockchain e tokenizzazione.
Tradeweb Markets Inc. (Nasdaq: TW) reportó sólidos resultados financieros para el segundo trimestre de 2024:
- Ingresos: $405.0 millones, un aumento del 30.4% interanual
- Volumen Promedio Diario (ADV): $1.9 billones, un aumento del 48.3%
- Ingreso Neto: $136.4 millones, un aumento del 33.8%
- Ingreso Neto Ajustado: $166.7 millones, un aumento del 34.7%
- EPS Diluido: $0.55, un aumento del 31.0%
- EPS Diluido Ajustado: $0.70, un aumento del 34.6%
Tradeweb estableció récords trimestrales de ADV en tasas, mercados monetarios y crédito. La empresa acordó adquirir ICD por $785 millones, agregando Corporates como su cuarto canal de clientes. Tradeweb también hizo inversiones estratégicas en tecnologías de blockchain y tokenización.
Tradeweb Markets Inc. (Nasdaq: TW)는 2024년 2분기 강력한 재무 결과를 보고했습니다:
- 수익: $405.0백만, 전년 대비 30.4% 증가
- 일일 평균 거래량 (ADV): $1.9조, 48.3% 증가
- 순이익: $136.4백만, 33.8% 증가
- 조정된 순이익: $166.7백만, 34.7% 증가
- 희석 EPS: $0.55, 31.0% 증가
- 조정된 희석 EPS: $0.70, 34.6% 증가
Tradeweb은 금리, 머니 마켓 및 크레딧 분야에서 분기별 ADV 기록을 세웠습니다. 회사는 ICD를 $785백만에 인수하기로 합의하였으며, Corporates를 네 번째 클라이언트 채널로 추가했습니다. Tradeweb은 블록체인 및 토큰화 기술에 전략적 투자를 하기도 했습니다.
Tradeweb Markets Inc. (Nasdaq: TW) a rapporté de solides résultats financiers pour le deuxième trimestre de 2024 :
- Revenus : $405,0 millions, en hausse de 30,4 % par rapport à l'année précédente
- Volume Moyen Quotidien (ADV) : $1,9 trillion, en hausse de 48,3 %
- Revenu Net : $136,4 millions, en hausse de 33,8 %
- Revenu Net Ajusté : $166,7 millions, en hausse de 34,7 %
- BPA Dilué : $0,55, en hausse de 31,0 %
- BPA Dilué Ajusté : $0,70, en hausse de 34,6 %
Tradeweb a établi des records trimestriels d'ADV dans les taux, les marchés monétaires et le crédit. L'entreprise a convenu d'acquérir ICD pour 785 millions de dollars, ajoutant les Corporates comme quatrième canal client. Tradeweb a également effectué des investissements stratégiques dans les technologies de blockchain et de tokenisation.
Tradeweb Markets Inc. (Nasdaq: TW) hat für das zweite Quartal 2024 starke finanzielle Ergebnisse gemeldet:
- Einnahmen: $405,0 Millionen, ein Anstieg um 30,4% im Vergleich zum Vorjahr
- Durchschnittliches tägliches Volumen (ADV): $1,9 Billionen, ein Anstieg um 48,3%
- Nettogewinn: $136,4 Millionen, ein Anstieg um 33,8%
- Bereinigter Nettogewinn: $166,7 Millionen, ein Anstieg um 34,7%
- Verwässerter EPS: $0,55, ein Anstieg um 31,0%
- Bereinigter verwässerter EPS: $0,70, ein Anstieg um 34,6%
Tradeweb hat vierteljährliche ADV-Rekorde in Zinsen, Geldmärkten und Krediten festgelegt. Das Unternehmen hat vereinbart, ICD für $785 Millionen zu übernehmen, womit Corporates als vierten Kundenkanal hinzugefügt wird. Tradeweb hat auch strategische Investitionen in Blockchain- und Tokenisierungstechnologien getätigt.
- Revenue increased by 30.4% to $405.0 million in Q2 2024
- Average Daily Volume (ADV) grew by 48.3% to $1.9 trillion
- Net income rose by 33.8% to $136.4 million
- Adjusted EBITDA margin improved to 53.5% from 52.5% in the prior year period
- Set quarterly ADV records in rates, money markets, and credit
- Captured a record 18.8% share of fully electronic U.S. high grade TRACE
- Agreed to acquire ICD for $785 million, adding Corporates as fourth client channel
- Incurred $2.9 million in incremental cash compensation expense due to executive departure
- Operating expenses increased by 24.8% to $242.5 million
- Adjusted expenses rose by 25.8% to $203.6 million
Tradeweb Markets Inc. has delivered an impressive performance in Q2 2024, showcasing robust growth across key financial metrics. The company reported a 30.4% increase in quarterly revenues to
The company's average daily volume (ADV) saw a remarkable 48.3% year-over-year increase to
Tradeweb's adjusted EBITDA margin expanded to
The acquisition of Institutional Cash Distributors (ICD) for
Overall, Tradeweb's strong financial results, coupled with its strategic initiatives and market share gains, position the company well for continued growth in the evolving electronic trading landscape.
Tradeweb's Q2 2024 results reflect significant market share gains and increased adoption of electronic trading solutions across various asset classes. The company's record
The
In the Money Markets segment, the
Tradeweb's expansion into blockchain technology through partnerships with Alphaledger and investment in Securitize shows foresight in preparing for potential disruptions in traditional financial markets. These initiatives could position Tradeweb at the forefront of tokenized asset trading and blockchain-based financial infrastructure.
The company's ability to innovate and adapt to changing market dynamics, as evidenced by the launch of RFQ Edge and the connection of repo and IRS markets, should help maintain its competitive edge in the rapidly evolving electronic trading landscape.
Tradeweb's technological innovations and strategic partnerships demonstrate its commitment to staying at the forefront of electronic trading. The company's investment in blockchain technology through its partnership with Alphaledger and
The launch of RFQ Edge, which applies portfolio trading analytics to the RFQ protocol, showcases Tradeweb's ability to leverage advanced analytics to enhance trading experiences. This innovation could lead to improved execution quality and efficiency for credit and ETF traders, potentially driving further adoption of Tradeweb's platforms.
Tradeweb's participation in the Global Synchronizer launch, part of the Canton Network, indicates its involvement in developing next-generation financial infrastructure. This decentralized interoperability infrastructure could pave the way for more efficient and secure cross-asset trading in the future.
The company's efforts to connect repo and IRS markets electronically, making it the first platform to do so, demonstrate its ability to create innovative solutions that bridge different market segments. This integration could lead to more efficient pricing and risk management for institutional clients.
Tradeweb's continued investment in technology and innovation, coupled with its strong market position, suggests that the company is well-positioned to benefit from the ongoing digitization of financial markets and the increasing demand for electronic trading solutions across asset classes.
![Billy Hult, CEO, Tradeweb Markets (Photo: Business Wire)](https://mms.businesswire.com/media/20240725918017/en/1675006/4/billy_hult.jpg)
Billy Hult, CEO, Tradeweb Markets (Photo: Business Wire)
Billy Hult, CEO of Tradeweb:
“We delivered strong organic growth complemented by continued investment in our multi-asset class, global business, resulting in a
SELECT FINANCIAL RESULTS |
|
2Q24 |
|
|
2Q23 |
|
Change |
Constant Currency Change(1) |
||
(dollars in thousands except per share amounts)(Unaudited) |
||||||||||
GAAP Financial Measures |
||||||||||
Total revenue |
$ |
404,951 |
|
$ |
310,613 |
|
30.4 |
% |
30.8 |
% |
Rates |
$ |
217,531 |
|
$ |
160,354 |
|
35.7 |
% |
36.4 |
% |
Credit |
$ |
111,324 |
|
$ |
84,048 |
|
32.5 |
% |
32.6 |
% |
Equities |
$ |
22,871 |
|
$ |
22,146 |
|
3.3 |
% |
3.8 |
% |
Money Markets |
$ |
18,045 |
|
$ |
15,834 |
|
14.0 |
% |
14.2 |
% |
Market Data |
$ |
29,227 |
|
$ |
22,776 |
|
28.3 |
% |
28.4 |
% |
Other |
$ |
5,953 |
|
$ |
5,455 |
|
9.1 |
% |
9.2 |
% |
Net income |
$ |
136,416 |
|
$ |
101,939 |
|
33.8 |
% |
|
|
Net income attributable to Tradeweb Markets Inc. (2) | $ |
119,239 |
|
$ |
89,082 |
|
33.9 |
% | ||
Diluted EPS |
$ |
0.55 |
|
$ |
0.42 |
|
31.0 |
% |
|
|
Net income margin |
|
33.7 |
% |
|
32.8 |
% |
+87 |
bps |
|
|
Non-GAAP Financial Measures |
||||||||||
Adjusted EBITDA (1) |
$ |
216,533 |
|
$ |
163,055 |
|
32.8 |
% |
32.6 |
% |
Adjusted EBITDA margin (1) |
|
53.5 |
% |
|
52.5 |
% |
+98 |
bps |
+70 |
bps |
Adjusted EBIT (1) |
$ |
201,312 |
|
$ |
148,797 |
|
35.3 |
% |
35.0 |
% |
Adjusted EBIT margin (1) |
|
49.7 |
% |
|
47.9 |
% |
+181 |
bps |
+154 |
bps |
Adjusted Net Income (1) |
$ |
166,711 |
|
$ |
123,749 |
|
34.7 |
% |
34.5 |
% |
Adjusted Diluted EPS (1) |
$ |
0.70 |
|
$ |
0.52 |
|
34.6 |
% |
34.6 |
% |
(1) |
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Diluted EPS and constant currency change are non-GAAP financial measures. See “Non-GAAP Financial Measures” below and the attached schedules for additional information and reconciliations of such non-GAAP financial measures. |
(2) |
Represents net income less net income attributable to non-controlling interests. |
ADV (US $bn) (Unaudited) |
|||||||
Asset Class |
Product |
|
2Q24 |
|
2Q23 |
YoY |
|
Rates |
Cash |
$ |
462 |
$ |
345 |
34.1 |
% |
|
Derivatives |
|
787 |
|
429 |
83.4 |
% |
|
Total |
|
1,249 |
|
774 |
61.4 |
% |
Credit |
Cash |
|
17 |
|
11 |
58.5 |
% |
|
Derivatives |
|
13 |
|
8 |
53.8 |
% |
|
Total |
|
30 |
|
19 |
56.5 |
% |
Equities |
Cash |
|
10 |
|
10 |
0.2 |
% |
|
Derivatives |
|
11 |
|
9 |
19.9 |
% |
|
Total |
|
21 |
|
19 |
9.8 |
% |
Money Markets |
Cash |
|
622 |
|
484 |
28.4 |
% |
|
Total |
|
622 |
|
484 |
28.4 |
% |
|
Total |
$ |
1,922 |
$ |
1,297 |
48.3 |
% |
DISCUSSION OF RESULTS
Rates – Revenues of
Credit – Revenues of
Equities – Revenues of
Money Markets – Revenues of
Market Data – Revenues of
Other – Revenues of
Operating Expenses of
Adjusted Expenses of
RECENT HIGHLIGHTS
Second Quarter 2024
-
Announced definitive agreement to acquire Institutional Cash Distributors (“ICD”), an institutional investment technology provider for corporate treasury organizations trading short-term investments, for
, subject to customary adjustments, which will add Corporates as our fourth client channel alongside Institutional, Wholesale and Retail. The closing of the acquisition is subject to customary closing conditions and regulatory reviews.$785 million - Announced organizational changes, including the addition of Amy Clack, who will join Tradeweb in August 2024 as Chief Administrative Officer (CAO), overseeing operations, business integration, risk and corporate services. In addition, Tradeweb announced that President Thomas Pluta will leave the Company and its Board of Directors, effective September 30, 2024.
- Agreed with Alphaledger, a leading provider of blockchain infrastructure for fixed income assets, to jointly develop innovative products leveraging Alphaledger's blockchain technology.
-
Invested
as part of$10 million strategic funding round led by BlackRock for Securitize, a leader in tokenizing real-world assets.$47 million - Served as network participant in the launch of Global Synchronizer, the Canton Network's decentralized interoperability infrastructure. The Canton Network is a public-permissioned blockchain network designed with the privacy and controls essential to facilitate the exchange of regulated financial assets.
-
Entered into a
lease for Tradeweb's new NYC headquarters, expected to commence in mid-2025 with an expected initial lease term of approximately 16 years.$159.2 million -
Launched an enhanced functionality for RFQ trading in
U.S. credit markets; “RFQ Edge” deploys Tradeweb's advanced portfolio trading analytics to its RFQ protocol to deliver a more powerful list trading experience forU.S. credit and ETF traders. -
Expanded strategic partnership between Tradeweb and FTSE Russell to produce benchmark closing prices for the
U.S. Treasury markets. - Became the first electronic trading platform to make overnight index swap (OIS) curves available during the repo trade negotiation process, helping institutional clients assess the price competitiveness of different repo rates across different currencies and maturities.
- Awarded two framework agreements to provide Electronic Trading Platforms to the European Central Bank (ECB) and other Eurosystem National Central Banks, after successfully participating in the procurement procedure organized by the ECB.
- Recognized in numerous awards celebrating our company, as well as our outstanding and diverse talent, including: 40 Top Innovators (TabbFORUM); Asset Management Awards - Best Data & Technology Provider and Rising Star in Asset Services (AsianInvestor); Inside Market Data & Inside Reference Data Awards - Most Innovative Market Data Project (WatersTechnology); Women in Finance Asia Awards - Excellence in ETFs - Keri Neo (Markets Media); Markets Choice Awards - Best Company (Markets Media)
CAPITAL MANAGEMENT
-
in cash and cash equivalents and an undrawn$1.7 billion credit facility at June 30, 2024$500 million -
acquisition of ICD is expected to close in the third quarter of 2024, subject to the satisfaction of customary closing conditions and regulatory reviews and the purchase price, subject to customary adjustments, is expected to be funded with cash on hand$785 million -
Free cash flow for the trailing twelve months ended June 30, 2024 of
, up$721.7 million 13.7% compared to prior year period. See “Non-GAAP Financial Measures“ for additional information -
Cash capital expenditures and capitalized software development in the second quarter 2024 of
(excludes amounts paid at closing for acquisitions)$16.6 million -
remained available for repurchase pursuant to the share repurchase program authorization as of June 30, 2024. No shares were repurchased during the second quarter of 2024$239.8 million -
in shares of Class A common stock were withheld in the second quarter of 2024 to satisfy tax obligations related to the exercise of stock options and vesting of restricted stock units and performance-based restricted stock units held by employees$0.3 million -
The Board declared a quarterly cash dividend of
per share of Class A common stock and Class B common stock. The dividend will be payable on September 16, 2024 to stockholders of record as of September 3, 2024$0.10
OTHER MATTERS
Updated Full-Year 2024 Guidance*
-
Adjusted Expenses:
- 860 million$830 -
Acquisition and Refinitiv Transaction related depreciation and amortization expense:
$158 million -
Assumed non-GAAP tax rate: ~
24.5% -25.5% -
Cash capital expenditures and capitalized software development:
- 85 million$77 -
LSEG Market Data Contract Revenue:
~ ($80 million ~ in 2025)$90 million
The guidance has been revised to reflect higher expenses and expenditures in light of strong business momentum, the anticipated closing of ICD during the third quarter of 2024 and recently announced management changes. Assumed non-GAAP tax rate and LSEG Market Data Contract Revenue guidance is unchanged from the prior quarter guidance.
*GAAP operating expenses and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement of foreign currency rates. Expense guidance assumes an average 2024 Sterling/US$ foreign exchange rate of 1.24 and includes completed M&A transactions as well as the expected closing of the ICD acquisition in the third quarter of 2024. Guidance amounts for cash capital expenditures and capitalized software development excludes amounts paid at closing for acquisitions.
CONFERENCE CALL
Tradeweb Markets will hold a conference call to discuss second quarter 2024 results starting at 9:30 AM EDT today, July 25, 2024. A live, audio webcast of the conference call along with related presentation materials will be available at https://investors.tradeweb.com/events-and-presentations.
- To join the call via audio webcast, click here: https://edge.media-server.com/mmc/p/n8n9p3bv/
- To join the call via phone, please register in advance here: https://register.vevent.com/register/BI10fde228f4fd46c686f35483a283443e. Registered participants will receive an email confirmation with a unique PIN to access the conference call.
An archived recording of the call will be available afterward at https://investors.tradeweb.com.
ABOUT TRADEWEB MARKETS
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 2,500 clients in more than 70 countries. On average, Tradeweb facilitated more than
TRADEWEB MARKETS INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
(dollars in thousands, except per share amounts) |
|||||||||||||||
Transaction fees and commissions |
|
$ |
330,475 |
|
|
$ |
246,461 |
|
|
$ |
665,926 |
|
|
$ |
513,059 |
|
Subscription fees |
|
|
50,746 |
|
|
|
45,748 |
|
|
|
100,427 |
|
|
|
90,122 |
|
LSEG market data fees |
|
|
20,581 |
|
|
|
15,461 |
|
|
|
41,081 |
|
|
|
31,055 |
|
Other |
|
|
3,149 |
|
|
|
2,943 |
|
|
|
6,256 |
|
|
|
5,626 |
|
Total revenue |
|
|
404,951 |
|
|
|
310,613 |
|
|
|
813,690 |
|
|
|
639,862 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
|
||||||||
Employee compensation and benefits |
|
|
137,236 |
|
|
|
103,924 |
|
|
|
280,323 |
|
|
|
218,417 |
|
Depreciation and amortization |
|
|
49,936 |
|
|
|
45,887 |
|
|
|
99,273 |
|
|
|
91,291 |
|
Technology and communications |
|
|
24,230 |
|
|
|
18,701 |
|
|
|
45,540 |
|
|
|
36,268 |
|
General and administrative |
|
|
12,755 |
|
|
|
11,072 |
|
|
|
23,609 |
|
|
|
24,992 |
|
Professional fees |
|
|
13,324 |
|
|
|
10,666 |
|
|
|
25,124 |
|
|
|
21,842 |
|
Occupancy |
|
|
4,976 |
|
|
|
4,028 |
|
|
|
9,649 |
|
|
|
8,151 |
|
Total expenses |
|
|
242,457 |
|
|
|
194,278 |
|
|
|
483,518 |
|
|
|
400,961 |
|
Operating income |
|
|
162,494 |
|
|
|
116,335 |
|
|
|
330,172 |
|
|
|
238,901 |
|
Interest income |
|
|
21,511 |
|
|
|
15,576 |
|
|
|
42,571 |
|
|
|
28,516 |
|
Interest expense |
|
|
(542 |
) |
|
|
(467 |
) |
|
|
(2,260 |
) |
|
|
(916 |
) |
Other income (loss), net |
|
|
— |
|
|
|
(456 |
) |
|
|
— |
|
|
|
(115 |
) |
Income before taxes |
|
|
183,463 |
|
|
|
130,988 |
|
|
|
370,483 |
|
|
|
266,386 |
|
Provision for income taxes |
|
|
(47,047 |
) |
|
|
(29,049 |
) |
|
|
(90,685 |
) |
|
|
(62,254 |
) |
Net income |
|
|
136,416 |
|
|
|
101,939 |
|
|
|
279,798 |
|
|
|
204,132 |
|
Less: Net income attributable to non-controlling interests |
|
|
17,177 |
|
|
|
12,857 |
|
|
|
34,417 |
|
|
|
27,194 |
|
Net income attributable to Tradeweb Markets Inc. |
|
$ |
119,239 |
|
|
$ |
89,082 |
|
|
$ |
245,381 |
|
|
$ |
176,938 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.56 |
|
|
$ |
0.42 |
|
|
$ |
1.15 |
|
|
$ |
0.84 |
|
Diluted |
|
$ |
0.55 |
|
|
$ |
0.42 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
213,162,158 |
|
|
|
211,569,728 |
|
|
|
212,936,015 |
|
|
|
209,847,153 |
|
Diluted |
|
|
214,895,947 |
|
|
|
213,156,753 |
|
|
|
214,778,342 |
|
|
|
211,659,814 |
|
TRADEWEB MARKETS INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted EBIT Margin |
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
(dollars in thousands) |
||||||||||||||
Net income |
|
$ |
136,416 |
|
|
$ |
101,939 |
|
|
$ |
279,798 |
|
|
$ |
204,132 |
|
Merger and acquisition transaction and integration costs (1) |
|
|
3,650 |
|
|
|
1,212 |
|
|
|
7,264 |
|
|
|
1,797 |
|
Interest income |
|
|
(21,511 |
) |
|
|
(15,576 |
) |
|
|
(42,571 |
) |
|
|
(28,516 |
) |
Interest expense |
|
|
542 |
|
|
|
467 |
|
|
|
2,260 |
|
|
|
916 |
|
Depreciation and amortization |
|
|
49,936 |
|
|
|
45,887 |
|
|
|
99,273 |
|
|
|
91,291 |
|
Stock-based compensation expense (2) |
|
|
531 |
|
|
|
585 |
|
|
|
1,714 |
|
|
|
1,435 |
|
Provision for income taxes |
|
|
47,047 |
|
|
|
29,049 |
|
|
|
90,685 |
|
|
|
62,254 |
|
Foreign exchange (gains) / losses (3) |
|
|
(78 |
) |
|
|
(964 |
) |
|
|
(2,362 |
) |
|
|
1,834 |
|
Tax receivable agreement liability adjustment (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other (income) loss, net |
|
|
— |
|
|
|
456 |
|
|
|
— |
|
|
|
115 |
|
Adjusted EBITDA |
|
$ |
216,533 |
|
|
$ |
163,055 |
|
|
$ |
436,061 |
|
|
$ |
335,258 |
|
Less: Depreciation and amortization |
|
|
(49,936 |
) |
|
|
(45,887 |
) |
|
|
(99,273 |
) |
|
|
(91,291 |
) |
Add: D&A related to acquisitions and the Refinitiv Transaction (5) |
|
|
34,715 |
|
|
|
31,629 |
|
|
|
69,082 |
|
|
|
63,246 |
|
Adjusted EBIT |
|
$ |
201,312 |
|
|
$ |
148,797 |
|
|
$ |
405,870 |
|
|
$ |
307,213 |
|
Net income margin (6) |
|
|
33.7 |
% |
|
|
32.8 |
% |
|
|
34.4 |
% |
|
|
31.9 |
% |
Adjusted EBITDA margin (6) |
|
|
53.5 |
% |
|
|
52.5 |
% |
|
|
53.6 |
% |
|
|
52.4 |
% |
Adjusted EBIT margin (6) |
|
|
49.7 |
% |
|
|
47.9 |
% |
|
|
49.9 |
% |
|
|
48.0 |
% |
(1) |
Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration. |
(2) |
Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2024, this adjustment also includes |
(3) |
Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity’s functional currency. |
(4) |
Represents income recognized during the applicable period due to changes in the tax receivable agreement liability recorded in the consolidated statement of financial condition as a result of changes in the mix of earnings, tax legislation and tax rates in various jurisdictions which impacted our tax savings. |
(5) |
Represents intangible asset and acquired software amortization resulting from acquisitions and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction). |
(6) |
Net income margin, Adjusted EBITDA margin and Adjusted EBIT margin are defined as net income, Adjusted EBITDA and Adjusted EBIT, respectively, divided by revenue for the applicable period. |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS |
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands, except per share amounts) |
|||||||||||||||
Earnings per diluted share |
|
$ |
0.55 |
|
|
$ |
0.42 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
Net income attributable to Tradeweb Markets Inc. |
|
$ |
119,239 |
|
|
$ |
89,082 |
|
|
$ |
245,381 |
|
|
$ |
176,938 |
|
Net income attributable to non-controlling interests (1) |
|
|
17,177 |
|
|
|
12,857 |
|
|
|
34,417 |
|
|
|
27,194 |
|
Net income |
|
|
136,416 |
|
|
|
101,939 |
|
|
|
279,798 |
|
|
|
204,132 |
|
Provision for income taxes |
|
|
47,047 |
|
|
|
29,049 |
|
|
|
90,685 |
|
|
|
62,254 |
|
Merger and acquisition transaction and integration costs (2) |
|
|
3,650 |
|
|
|
1,212 |
|
|
|
7,264 |
|
|
|
1,797 |
|
D&A related to acquisitions and the Refinitiv Transaction (3) |
|
|
34,715 |
|
|
|
31,629 |
|
|
|
69,082 |
|
|
|
63,246 |
|
Stock-based compensation expense (4) |
|
|
531 |
|
|
|
585 |
|
|
|
1,714 |
|
|
|
1,435 |
|
Foreign exchange (gains) / losses (5) |
|
|
(78 |
) |
|
|
(964 |
) |
|
|
(2,362 |
) |
|
|
1,834 |
|
Tax receivable agreement liability adjustment (6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other (income) loss, net |
|
|
— |
|
|
|
456 |
|
|
|
— |
|
|
|
115 |
|
Adjusted Net Income before income taxes |
|
|
222,281 |
|
|
|
163,906 |
|
|
|
446,181 |
|
|
|
334,813 |
|
Adjusted income taxes (7) |
|
|
(55,570 |
) |
|
|
(40,157 |
) |
|
|
(111,545 |
) |
|
|
(82,029 |
) |
Adjusted Net Income |
|
$ |
166,711 |
|
|
$ |
123,749 |
|
|
$ |
334,636 |
|
|
$ |
252,784 |
|
Adjusted Diluted EPS (8) |
|
$ |
0.70 |
|
|
$ |
0.52 |
|
|
$ |
1.41 |
|
|
$ |
1.07 |
|
(1) |
Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock. |
(2) |
Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration. |
(3) |
Represents intangible asset and acquired software amortization resulting from acquisitions and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction). |
(4) |
Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2024, this adjustment also includes |
(5) |
Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity’s functional currency. |
(6) |
Represents income recognized during the applicable period due to changes in the tax receivable agreement liability recorded in the consolidated statement of financial condition as a result of changes in the mix of earnings, tax legislation and tax rates in various jurisdictions which impacted our tax savings. |
(7) |
Represents corporate income taxes at an assumed effective tax rate of |
(8) |
For a summary of the calculation of Adjusted Diluted EPS, see “Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding and Adjusted Diluted EPS” below. |
The following table summarizes the calculation of Adjusted Diluted EPS for the periods presented:
Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding and Adjusted Diluted EPS |
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
June 30, |
|
June 30, |
|||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Diluted weighted average shares of Class A and Class B common stock outstanding |
|
|
214,895,947 |
|
|
213,156,753 |
|
|
214,778,342 |
|
|
211,659,814 |
Weighted average of other participating securities (1) |
|
|
125,012 |
|
|
241,963 |
|
|
142,484 |
|
|
266,790 |
Assumed exchange of LLC Interests for shares of Class A or Class B common stock (2) |
|
|
23,077,698 |
|
|
23,153,250 |
|
|
23,077,836 |
|
|
24,738,197 |
Adjusted diluted weighted average shares outstanding |
|
|
238,098,657 |
|
|
236,551,966 |
|
|
237,998,662 |
|
|
236,664,801 |
Adjusted Net Income (in thousands) |
|
$ |
166,711 |
|
$ |
123,749 |
|
$ |
334,636 |
|
$ |
252,784 |
Adjusted Diluted EPS |
|
$ |
0.70 |
|
$ |
0.52 |
|
$ |
1.41 |
|
$ |
1.07 |
(1) |
Represents weighted average unvested restricted stock units and unsettled vested performance-based restricted stock units issued to certain retired or terminated employees that are entitled to non-forfeitable dividend equivalent rights and are considered participating securities prior to being issued and outstanding shares of common stock in accordance with the two-class method used for purposes of calculating earnings per share. |
(2) |
Assumes the full exchange of the weighted average of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock, resulting in the elimination of the non-controlling interests and recognition of the net income attributable to non-controlling interests. |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
Reconciliation of Operating Expenses to Adjusted Expenses |
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
(dollars in thousands) |
||||||||||||||
Operating expenses |
|
$ |
242,457 |
|
|
$ |
194,278 |
|
|
$ |
483,518 |
|
|
$ |
400,961 |
|
Merger and acquisition transaction and integration costs (1) |
|
|
(3,650 |
) |
|
|
(1,212 |
) |
|
|
(7,264 |
) |
|
|
(1,797 |
) |
D&A related to acquisitions and the Refinitiv Transaction (2) |
|
|
(34,715 |
) |
|
|
(31,629 |
) |
|
|
(69,082 |
) |
|
|
(63,246 |
) |
Stock-based compensation expense (3) |
|
|
(531 |
) |
|
|
(585 |
) |
|
|
(1,714 |
) |
|
|
(1,435 |
) |
Foreign exchange gains / (losses) (4) |
|
|
78 |
|
|
|
964 |
|
|
|
2,362 |
|
|
|
(1,834 |
) |
Adjusted Expenses |
|
$ |
203,639 |
|
|
$ |
161,816 |
|
|
$ |
407,820 |
|
|
$ |
332,649 |
|
(1) |
Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration. |
(2) |
Represents intangible asset and acquired software amortization resulting from acquisitions and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction). |
(3) |
Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2024, this adjustment also includes |
(4) |
Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity’s functional currency. |
|
|
Trailing Twelve Months Ended June 30, |
||||||
Reconciliation of Cash Flow from Operating Activities to Free Cash Flow |
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands) |
||||||
Cash flow from operating activities |
|
$ |
785,734 |
|
|
$ |
693,446 |
|
Less: Capitalization of software development costs |
|
|
(45,208 |
) |
|
|
(39,123 |
) |
Less: Purchases of furniture, equipment and leasehold improvements |
|
|
(18,780 |
) |
|
|
(19,557 |
) |
Free Cash Flow |
|
$ |
721,746 |
|
|
$ |
634,766 |
|
TRADEWEB MARKETS INC. BASIC AND DILUTED EPS CALCULATIONS (UNAUDITED) |
||||||||||||||||
The following table summarizes the basic and diluted earnings per share calculations for Tradeweb Markets Inc.: |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
EPS: Net income attributable to Tradeweb Markets Inc. |
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands, except per share amounts) |
|||||||||||||||
Numerator: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Tradeweb Markets Inc. |
|
$ |
119,239 |
|
|
$ |
89,082 |
|
|
$ |
245,381 |
|
|
$ |
176,938 |
|
Less: Distributed and undistributed earnings allocated to unvested RSUs and unsettled vested PRSUs (1) |
|
|
(70 |
) |
|
|
(102 |
) |
|
|
(164 |
) |
|
|
(225 |
) |
Net income attributable to outstanding shares of Class A and Class B common stock - Basic and Diluted |
|
$ |
119,169 |
|
|
$ |
88,980 |
|
|
$ |
245,217 |
|
|
$ |
176,713 |
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of Class A and Class B common stock outstanding - Basic |
|
|
213,162,158 |
|
|
|
211,569,728 |
|
|
|
212,936,015 |
|
|
|
209,847,153 |
|
Dilutive effect of PRSUs |
|
|
568,304 |
|
|
|
350,713 |
|
|
|
534,583 |
|
|
|
318,638 |
|
Dilutive effect of options |
|
|
449,252 |
|
|
|
1,143,376 |
|
|
|
524,413 |
|
|
|
1,306,297 |
|
Dilutive effect of RSUs |
|
|
252,498 |
|
|
|
92,936 |
|
|
|
348,282 |
|
|
|
187,726 |
|
Dilutive effect of PSUs |
|
|
463,735 |
|
|
|
— |
|
|
|
435,049 |
|
|
|
— |
|
Weighted average shares of Class A and Class B common stock outstanding - Diluted |
|
|
214,895,947 |
|
|
|
213,156,753 |
|
|
|
214,778,342 |
|
|
|
211,659,814 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - Basic |
|
$ |
0.56 |
|
|
$ |
0.42 |
|
|
$ |
1.15 |
|
|
$ |
0.84 |
|
Earnings per share - Diluted |
|
$ |
0.55 |
|
|
$ |
0.42 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
(1) |
During the three months ended June 30, 2024 and 2023, there was a total of 125,012 and 241,963, respectively, and during the six months ended June 30, 2024 and 2023, there was a total of 142,484 and 266,790, respectively, weighted average unvested RSUs and unsettled vested PRSUs that were considered a participating security for purposes of calculating earnings per share in accordance with the two-class method. |
TRADEWEB MARKETS INC. REVENUES BY ASSET CLASS (UNAUDITED) |
|||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
June 30, |
|
|
|
|
|||||||||||||||||||
|
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||||||||||||
Revenues |
|
Variable |
|
Fixed |
|
Variable |
|
Fixed |
|
Variable |
|
Fixed |
|
Variable |
|
Fixed |
|||||||||
|
|
(dollars in thousands) |
|||||||||||||||||||||||
Rates |
|
$ |
157,636 |
|
$ |
59,895 |
|
$ |
101,588 |
|
$ |
58,766 |
|
$ |
56,048 |
|
$ |
1,129 |
|
|
55.2 |
% |
|
1.9 |
% |
Credit |
|
|
102,785 |
|
|
8,539 |
|
|
77,334 |
|
|
6,714 |
|
|
25,451 |
|
|
1,825 |
|
|
32.9 |
% |
|
27.2 |
% |
Equities |
|
|
20,602 |
|
|
2,269 |
|
|
19,866 |
|
|
2,280 |
|
|
736 |
|
|
(11 |
) |
|
3.7 |
% |
|
(0.5 |
)% |
Money Markets |
|
|
13,695 |
|
|
4,350 |
|
|
11,535 |
|
|
4,299 |
|
|
2,160 |
|
|
51 |
|
|
18.7 |
% |
|
1.2 |
% |
Market Data |
|
|
132 |
|
|
29,095 |
|
|
45 |
|
|
22,731 |
|
|
87 |
|
|
6,364 |
|
|
193.3 |
% |
|
28.0 |
% |
Other |
|
|
— |
|
|
5,953 |
|
|
— |
|
|
5,455 |
|
|
— |
|
|
498 |
|
|
— |
|
|
9.1 |
% |
Total revenue |
|
$ |
294,850 |
|
$ |
110,101 |
|
$ |
210,368 |
|
$ |
100,245 |
|
$ |
84,482 |
|
$ |
9,856 |
|
|
40.2 |
% |
|
9.8 |
% |
TRADEWEB MARKETS INC. AVERAGE VARIABLE FEES PER MILLION DOLLARS OF VOLUME (UNAUDITED) |
|||||||||
|
|
Three Months Ended |
|
|
|||||
|
|
June 30, |
|
YoY |
|||||
|
|
|
2024 |
|
|
2023 |
|
% Change |
|
Rates |
|
$ |
2.00 |
|
$ |
2.10 |
|
(4.8 |
)% |
Rates Cash |
|
$ |
2.54 |
|
$ |
2.44 |
|
4.1 |
% |
Rates Derivatives |
|
$ |
1.69 |
|
$ |
1.83 |
|
(7.9 |
)% |
Rates Derivatives (greater than 1 year) |
|
$ |
2.71 |
|
$ |
2.75 |
|
(1.5 |
)% |
Other Rates Derivatives (1) |
|
$ |
0.20 |
|
$ |
0.23 |
|
(11.5 |
)% |
|
|
|
|
|
|
|
|||
Credit |
|
$ |
55.33 |
|
$ |
65.37 |
|
(15.4 |
)% |
Cash Credit (2) |
|
$ |
145.18 |
|
$ |
164.93 |
|
(12.0 |
)% |
Credit Derivatives, China Bonds and |
|
$ |
7.76 |
|
$ |
8.52 |
|
(8.9 |
)% |
|
|
|
|
|
|
|
|||
Equities |
|
$ |
15.39 |
|
$ |
16.60 |
|
(7.3 |
)% |
Equities Cash |
|
$ |
26.51 |
|
$ |
26.59 |
|
(0.3 |
)% |
Equities Derivatives |
|
$ |
5.62 |
|
$ |
6.14 |
|
(8.4 |
)% |
|
|
|
|
|
|
|
|||
Money Markets |
|
$ |
0.35 |
|
$ |
0.38 |
|
(8.1 |
)% |
|
|
|
|
|
|
|
|||
Total |
|
$ |
2.43 |
|
$ |
2.60 |
|
(6.3 |
)% |
Total excluding Other Rates Derivatives (3) |
|
$ |
2.88 |
|
$ |
2.92 |
|
(1.3 |
)% |
(1) |
Includes Swaps/Swaptions of tenor less than 1 year and Rates Futures. |
(2) |
The “Cash Credit” category represents the “Credit” asset class excluding (1) Credit Derivatives (2) China Bonds and (3) |
(3) |
Included to contextualize the impact of short-tenored Swaps/Swaptions and Rates Futures on totals for all periods presented. |
TRADEWEB MARKETS INC. AVERAGE DAILY VOLUME (UNAUDITED) (1) |
||||||||||||||
|
|
|
2024 Q2 |
|
2023 Q2 |
|
YoY |
|||||||
Asset Class |
Product |
|
ADV (USD mm) |
Volume (USD mm) |
|
ADV (USD mm) |
Volume (USD mm) |
|
ADV |
|||||
Rates |
Cash |
|
$ |
462,335 |
$ |
29,121,086 |
|
$ |
344,674 |
$ |
21,627,623 |
|
34.14 |
% |
|
|
|
|
202,460 |
|
12,754,982 |
|
|
135,128 |
|
8,513,069 |
|
49.83 |
% |
|
European Government Bonds |
|
|
45,699 |
|
2,879,044 |
|
|
40,694 |
|
2,482,305 |
|
12.30 |
% |
|
Mortgages |
|
|
203,813 |
|
12,840,218 |
|
|
163,359 |
|
10,291,618 |
|
24.76 |
% |
|
Other Government Bonds |
|
|
10,363 |
|
646,843 |
|
|
5,493 |
|
340,631 |
|
88.66 |
% |
|
Derivatives |
|
|
787,132 |
|
49,552,512 |
|
|
429,285 |
|
26,633,837 |
|
83.36 |
% |
|
Swaps/Swaptions ≥ 1Y |
|
|
466,923 |
|
29,396,323 |
|
|
273,533 |
|
16,961,570 |
|
70.70 |
% |
|
Swaps/Swaptions < 1Y |
|
|
310,657 |
|
19,558,079 |
|
|
154,332 |
|
9,582,824 |
|
101.29 |
% |
|
Futures |
|
|
9,552 |
|
598,110 |
|
|
1,420 |
|
89,443 |
|
572.51 |
% |
|
Total |
|
|
1,249,467 |
|
78,673,598 |
|
|
773,959 |
|
48,261,459 |
|
61.44 |
% |
Credit |
Cash |
|
|
16,844 |
|
1,047,204 |
|
|
10,627 |
|
662,558 |
|
58.50 |
% |
|
|
|
|
6,480 |
|
408,223 |
|
|
3,963 |
|
249,667 |
|
63.51 |
% |
|
|
|
2,913 |
|
183,514 |
|
|
2,694 |
|
169,696 |
|
8.14 |
% |
|
|
|
|
|
773 |
|
48,712 |
|
|
568 |
|
35,765 |
|
36.20 |
% |
|
|
|
|
247 |
|
15,549 |
|
|
317 |
|
19,998 |
|
(22.25 |
)% |
|
European Credit |
|
|
2,343 |
|
147,618 |
|
|
1,958 |
|
119,461 |
|
19.65 |
% |
|
Municipal Bonds |
|
|
369 |
|
23,274 |
|
|
308 |
|
19,412 |
|
19.89 |
% |
|
Chinese Bonds |
|
|
3,476 |
|
205,061 |
|
|
720 |
|
42,505 |
|
382.44 |
% |
|
Other Credit Bonds |
|
|
243 |
|
15,253 |
|
|
98 |
|
6,054 |
|
147.63 |
% |
|
Derivatives |
|
|
12,863 |
|
810,324 |
|
|
8,362 |
|
520,513 |
|
53.83 |
% |
|
Swaps |
|
|
12,863 |
|
810,324 |
|
|
8,362 |
|
520,513 |
|
53.83 |
% |
|
Total |
|
|
29,707 |
|
1,857,527 |
|
|
18,989 |
|
1,183,071 |
|
56.45 |
% |
Equities |
Cash |
|
|
9,937 |
|
626,031 |
|
|
9,913 |
|
612,227 |
|
0.24 |
% |
|
|
|
|
7,286 |
|
459,042 |
|
|
7,547 |
|
467,930 |
|
(3.46 |
)% |
|
European ETFs |
|
|
2,651 |
|
166,989 |
|
|
2,366 |
|
144,297 |
|
12.05 |
% |
|
Derivatives |
|
|
11,318 |
|
713,035 |
|
|
9,444 |
|
584,528 |
|
19.85 |
% |
|
Convertibles/Swaps/Options |
|
|
7,982 |
|
502,841 |
|
|
6,340 |
|
392,306 |
|
25.89 |
% |
|
Futures |
|
|
3,336 |
|
210,194 |
|
|
3,103 |
|
192,221 |
|
7.51 |
% |
|
Total |
|
|
21,255 |
|
1,339,066 |
|
|
19,356 |
|
1,196,755 |
|
9.81 |
% |
Money Markets |
Cash |
|
|
621,840 |
|
39,173,818 |
|
|
484,304 |
|
30,339,263 |
|
28.40 |
% |
|
Repurchase Agreements (Repo) |
|
|
600,947 |
|
37,859,666 |
|
|
465,955 |
|
29,184,397 |
|
28.97 |
% |
|
Other Money Markets |
|
|
20,893 |
|
1,314,152 |
|
|
18,349 |
|
1,154,866 |
|
13.87 |
% |
|
Total |
|
|
621,840 |
|
39,173,818 |
|
|
484,304 |
|
30,339,263 |
|
28.40 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
ADV (USD mm) |
Volume (USD mm) |
|
ADV (USD mm) |
Volume (USD mm) |
|
YoY |
|||||
|
Total |
|
$ |
1,922,270 |
$ |
121,044,010 |
|
$ |
1,296,607 |
$ |
80,980,548 |
|
48.3 |
% |
(1) |
We acquired Yieldbroker on August 31, 2023 and acquired r8fin on January 19, 2024. Total volume reported includes volumes from each acquired business subsequent to the closing date of the applicable acquisition. |
To access historical traded volumes, go to https://www.tradeweb.com/newsroom/monthly-activity-reports/
BASIS OF PRESENTATION
Tradeweb Markets Inc. (unless the context otherwise requires, together with its subsidiaries, referred to as “we,” “our,” “Tradeweb,” “Tradeweb Markets” or the “Company”) closed its IPO on April 8, 2019. As a result of certain reorganization transactions (the “Reorganization Transactions”) completed in connection with the IPO, on April 4, 2019, Tradeweb Markets Inc. became a holding company whose only material assets consist of its equity interest in Tradeweb Markets LLC (“TWM LLC”) and related deferred tax assets. As the sole manager of TWM LLC, Tradeweb Markets Inc. operates and controls all of the business and affairs of TWM LLC and, through TWM LLC and its subsidiaries, conducts its business. As a result of this control, and because Tradeweb Markets Inc. has a substantial financial interest in TWM LLC, Tradeweb Markets Inc. consolidates the financial results of TWM LLC and its subsidiaries.
Numerical figures included in this release have been subject to rounding adjustments and as a result totals may not be the arithmetic aggregation of the amounts that precede them and figures expressed as percentages may not total
Please refer to the Company's previously filed Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for capitalized terms not otherwise defined herein.
UNAUDITED INTERIM RESULTS
The interim financial results presented herein for the three and six months ended June 30, 2024 and 2023 are unaudited. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our guidance, including full-year 2024 guidance and full-year 2024 and 2025 revenue guidance related to the LSEG market data license agreement, pending acquisitions, future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in the documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future events or performance and future events, our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if future events, our results of operations, financial condition, or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of events, results or developments in future periods. Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.
NON-GAAP FINANCIAL MEASURES
This release contains “non-GAAP financial measures,” including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Net Income per diluted share (“Adjusted Diluted EPS”), Adjusted Expenses, Free Cash Flow and constant currency change, which are supplemental financial measures that are not calculated and presented in accordance with GAAP. We make use of non-GAAP financial measures in evaluating our past results and future prospects. We present these non-GAAP financial measures because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
Management and our board of directors use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT and Adjusted EBIT margin to assess our financial performance and believe they are helpful in highlighting trends in our core operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Further, our executive incentive compensation is based in part on components of Adjusted EBITDA.
We use Adjusted Net Income and Adjusted Diluted EPS as supplemental metrics to evaluate our business performance in a way that also considers our ability to generate profit without the impact of certain items. Each of the normal recurring adjustments and other adjustments included in Adjusted Net Income and Adjusted Diluted EPS help to provide management with a measure of our operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses.
We use Adjusted Expenses as a supplemental metric to evaluate our underlying operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses.
We use Free Cash Flow to assess our liquidity in a way that considers the amount of cash generated from our core operations after non-acquisition related expenditures for capitalized software development costs and furniture, equipment and leasehold improvements.
We present certain changes on a “constant currency” basis. Since our consolidated financial statements are presented in
See the attached schedules for reconciliations of the non-GAAP financial measures contained in this release to their most comparable GAAP financial measure. Non-GAAP financial measures have limitations as analytical tools, and you should not consider these non-GAAP financial measures in isolation or as alternatives to net income attributable to Tradeweb Markets Inc., net income, net income margin, earnings per share, operating income, operating expenses, cash flow from operating activities or any other financial measure prepared or derived in accordance with GAAP. You are encouraged to evaluate each adjustment included in the reconciliations. In addition, in evaluating Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted EBT, Adjusted Net Income, Adjusted Diluted EPS, Adjusted Expenses and Free Cash Flow, you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of these non-GAAP financial measures.
Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures contained in this release may not be comparable to similarly titled measures used by other companies in our industry or across different industries.
MARKET AND INDUSTRY DATA
This release includes estimates regarding market and industry data that we prepared based on our management’s knowledge and experience in the markets in which we operate, together with information obtained from various sources, including publicly available information, industry reports and publications, surveys, our clients, trade and business organizations and other contacts in the markets in which we operate. In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and we take no responsibility for such information.
TRADEWEB SOCIAL MEDIA
Investors and others should note that Tradeweb announces material financial and operational information using its investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about Tradeweb, its business and its results of operations may also be announced by posts on the Company’s accounts on the following social media channels: Instagram, LinkedIn and X (formerly Twitter). The information that we post through these social media channels may be deemed material. As a result, we encourage investors, the media, and others interested in Tradeweb to monitor these social media channels in addition to following our investor relations website, press releases, SEC filings and public conference calls and webcasts. These social media channels may be updated from time to time on our investor relations website.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725918017/en/
Investor Relations
Ashley Serrao + 1 646 430 6027
Ashley.Serrao@Tradeweb.com
Media Relations
Daniel Noonan + 1 646 767 4677
Daniel.Noonan@Tradeweb.com
Source: Tradeweb Markets Inc.
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