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, 2024.
$408.7 million quarterly revenues, an increase of
24.1% (23.8% on a constant currency basis) compared
to prior year period
$1.9 trillion average daily volume (“ADV”) for the
quarter, an increase of 39.1% compared to prior year period;
quarterly ADV records in fully electronic U.S. High Grade credit,
U.S. government bonds, European government bonds, swaps/swaptions ≥
1-year, European credit, U.S. ETFs, equity
convertibles/swaps/options, global repurchase agreements; record
17.6% share of fully electronic U.S. High Grade TRACE
$143.4 million net income and $167.9 million
adjusted net income for the quarter, increases of 40.3% and
30.1% respectively from prior year period
53.7% adjusted EBITDA margin and $219.5 million
adjusted EBITDA for the quarter, compared to 52.3% and $172.2
million respectively for prior year period
$0.59 diluted earnings per share (“Diluted EPS”) and
$0.71 adjusted diluted earnings per share for the
quarter
$0.10 per share quarterly cash dividend declared
Billy Hult, CEO of Tradeweb:
“We had a very strong start to 2024, continuing last year’s
momentum thanks to broad-based organic growth and a number of
important milestones. Our quarterly ADV climbed 39% from the prior
year period to a record $1.9 trillion, with several more ADV
records set across rates, credit, equities and money markets.
Tradeweb captured a record 17.6% share of U.S. High Grade TRACE
(+420 bps from the prior year period), reflecting steady growth in
an area of strategic focus and investment for us. In January, we
finalized our acquisition of r8fin, a technology provider that
specializes in algorithmic-based execution for U.S. Treasuries and
interest rate futures, and we feel great about how this will
strengthen our offering with macro hedge funds. In April, we agreed
to acquire ICD, a leading institutional investment technology
provider for corporate treasury organizations, which will add
Corporates as a new client channel with significant cross-sell
opportunities. We also recently celebrated the five-year
anniversary of Tradeweb’s IPO, and we remain laser-focused on
keeping continued innovation and collaboration at the heart of
Tradeweb’s success. Now more than ever, we believe the future of
trading is multi-asset class -- and innovative technology is how
markets are going to get there.”
SELECT FINANCIAL RESULTS
1Q24
1Q23
Change
Constant
Currency
Change(1)
(dollars in thousands except per share
amounts)(Unaudited)
GAAP Financial Measures
Total revenue
$
408,739
$
329,249
24.1
%
23.8
%
Rates
$
214,093
$
170,505
25.6
%
25.3
%
Credit
$
115,839
$
89,017
30.1
%
29.8
%
Equities
$
27,050
$
26,203
3.2
%
2.8
%
Money Markets
$
16,791
$
14,807
13.4
%
13.1
%
Market Data
$
29,022
$
22,434
29.4
%
28.8
%
Other
$
5,944
$
6,283
(5.4)
%
(5.4)
%
Net income
$
143,382
$
102,193
40.3
%
Net income attributable to Tradeweb Markets Inc. (2)
$
126,142
$
87,856
43.6
%
Diluted EPS
$
0.59
$
0.42
40.5
%
Net income margin
35.1
%
31.0
%
+404
bps
Non-GAAP Financial Measures
Adjusted EBITDA (1)
$
219,528
$
172,203
27.5
%
28.1
%
Adjusted EBITDA margin (1)
53.7
%
52.3
%
+141
bps
+179
bps
Adjusted EBIT (1)
$
204,558
$
158,416
29.1
%
29.8
%
Adjusted EBIT margin (1)
50.0
%
48.1
%
+193
bps
+231
bps
Adjusted Net Income (1)
$
167,925
$
129,035
30.1
%
30.8
%
Adjusted Diluted EPS (1)
$
0.71
$
0.54
31.5
%
29.6
%
ADV (US $bn)
(Unaudited)
Asset Class
Product
1Q24
1Q23
YoY
Rates
Cash
$
462
$
363
27.3
%
Derivatives
799
509
57.1
%
Total
1,261
871
44.7
%
Credit
Cash
17
11
51.5
%
Derivatives
18
21
(15.9
)%
Total
35
32
8.1
%
Equities
Cash
13
10
20.2
%
Derivatives
15
9
64.1
%
Total
27
20
40.5
%
Money Markets
Cash
577
442
30.3
%
Total
577
442
30.3
%
Total
$
1,900
$
1,366
39.1
%
(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.
DISCUSSION OF RESULTS
Rates – Revenues of $214.1 million in the first quarter
of 2024 increased 25.6% compared to prior year period (increased
25.3% on a constant currency basis). Rates ADV was up 44.7% from
prior year period, driven by record volume in swaps/swaptions ≥
1-year and U.S. government bonds. European government bonds
reported a record 17.9% ADV increase from prior year period,
supported by increased client activity, particularly in UK Gilts,
while Mortgages ADV was up 19.9% reflecting increased institutional
client activity, as well as record adoption of our specified pool
trading platform and record roll trading activity.
Credit – Revenues of $115.8 million in the first quarter
of 2024 increased 30.1% compared to prior year period (increased
29.8% on a constant currency basis). Credit ADV was up 8.1% from
prior year period, as strong U.S. credit volumes, including record
ADV in fully-electronic U.S. High Grade credit, reflected continued
client adoption across Tradeweb protocols, including
request-for-quote (RFQ), Tradeweb AllTrade® and portfolio trading.
Record European credit ADV was up 23.2% from prior year period,
driven by strong activity in portfolio trading and Tradeweb
Automated Intelligent Execution (AiEX). Our share of fully
electronic TRACE for U.S. High Grade was a record 17.6%, up 420 bps
from prior year period, and U.S. High Yield was 6.7%, up 60 bps
from prior year period.
Equities – Revenues of $27.1 million in the first quarter
of 2024 increased 3.2% compared to prior year period (increased
2.8% on a constant currency basis). Equities ADV was up 40.5% from
prior year period, driven by record activity in equity
convertibles/swaps/options.
Money Markets – Revenues of $16.8 million in the first
quarter of 2024 increased 13.4% compared to prior year period
(increased 13.1% on a constant currency basis). Money Markets ADV
was up 30.3% from prior year period, led by record activity in
global repurchase agreements and increased client adoption of
Tradeweb's electronic trading solutions.
Market Data – Revenues of $29.0 million in the first
quarter of 2024 increased 29.4% compared to prior year period
(increased 28.8% on a constant currency basis). The increase was
derived primarily from increased LSEG market data fees from the
contract that was amended effective November 1, 2023 and
proprietary third party market data revenue.
Other – Revenues of $5.9 million in the first quarter of
2024 decreased 5.4% compared to prior year period (decreased 5.4%
on a constant currency basis).
Operating Expenses of $241.1 million in the first quarter
of 2024 increased 16.6% compared to $206.7 million in prior year
period, primarily due to an increase in employee compensation and
benefits including incentive compensation tied to our financial
performance, as well as an increase in headcount and related
salaries and benefits to support our continued growth.
Adjusted Expenses of $204.2 million in the first quarter
of 2024 increased 19.5% (increased 18.3% on a constant currency
basis) compared to prior year period primarily due to higher
expenses related to employee compensation and benefits. Please see
"Non-GAAP Financial Measures" below for additional information.
RECENT HIGHLIGHTS
April 2024
- Announced definitive agreement to acquire Institutional Cash
Distributors ("ICD"), an institutional investment technology
provider for corporate treasury organizations trading short-term
investments, for $785 million, 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.
- 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.
- Celebrated our five-year IPO anniversary at Nasdaq's Opening
Bell ceremony.
First Quarter 2024
- Completed our acquisition of r8fin, a technology provider that
specializes in algorithmic-based execution for U.S. Treasuries and
interest rate futures.
- Appointed Lisa Opoku to Tradeweb's Board of Directors, bringing
nearly 30 years of additional finance and legal experience to the
Board.
- Celebrated the grand opening of our Miami and Dubai offices,
deepening our relationships with our growing emerging markets
client base.
- Expanded our mortgage platform by adding collateralized
mortgage obligations (CMOs) as the latest addition to our
securitized product offering.
- Published our 2023 Annual Report, discussing our 24th
consecutive year of revenue growth with record trading volumes,
expanded automation capabilities, enhanced strategic partnerships
and exciting acquisitions.
- Recognized in numerous awards celebrating our company, as well
as our outstanding and diverse talent, including: Best Financial
Services Companies to Work For (U.S. News); Notable Leaders in
Finance - Billy Hult (Crain's New York Business); Women in
Technology & Data Awards - Above and Beyond award (vendor) -
Susan Bennett (WatersTechnology); Rising Star - Opal Parris
(Women's Bond Club); Notable General Counsel - Doug Friedman
(Crain's New York Business)
CAPITAL MANAGEMENT
- $1.5 billion in cash and cash equivalents and an undrawn $500
million credit facility at March 31, 2024
- As consideration for the acquisition of r8fin, we paid $89.2
million in cash and issued 374,601 shares of Class A common stock
valued as of the closing date at $36.7 million
- Cash capital expenditures and capitalization of software
development in the first quarter 2024 of $17.3 million (excludes
amounts paid at closing for acquisitions)
- Free cash flow for the trailing twelve months ended March 31,
2024 of $650.8 million, up 8.5% compared to prior year period. See
“Non-GAAP Financial Measures” for additional information
- $785 million acquisition of ICD is expected to close in the
second half 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
- $239.8 million remained available for repurchase pursuant to
the share repurchase program authorization as of March 31, 2024. No
shares were repurchased during the first quarter of 2024
- $43.8 million in shares of Class A common stock were withheld
in the first 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
- The Board declared a quarterly cash dividend of $0.10 per share
of Class A common stock and Class B common stock. The dividend will
be payable on June 17, 2024 to stockholders of record as of June 3,
2024
OTHER MATTERS
Updated Full-Year 2024 Guidance*
- Adjusted Expenses: $755 - 805 million (trending toward top end
of range)
- Acquisition and Refinitiv Transaction related depreciation and
amortization expense: $142 million
- Assumed non-GAAP tax rate: ~ 24.5% - 25.5%
- Cash costs of non-acquisition capital expenditures and
capitalized software development: $75 - 83 million
- LSEG Market Data Contract Revenue: ~$80 million (~$90 million
in 2025) *GAAP operating expenses and tax rate guidance are not
provided due to the inherent difficulty in quantifying certain
amounts due to a variety of factors including the unpredictability
in the movement of foreign currency rates. Expense guidance assumes
an average 2024 Sterling/US$ foreign exchange rate of 1.24 and
includes completed M&A transactions.
CONFERENCE CALL
Tradeweb Markets will hold a conference call to discuss first
quarter 2024 results starting at 9:30 AM EDT today, April 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/t9m7w485
- To join the call via phone, please register in advance here:
https://register.vevent.com/register/BIf70b5059ccc842ed91c32442e68f0355.
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 $1.5 trillion in notional value traded per
day over the past four fiscal quarters. For more information,
please go to www.tradeweb.com.
TRADEWEB MARKETS INC.
CONSOLIDATED STATEMENTS OF
INCOME
(UNAUDITED)
Three Months Ended
March 31,
2024
2023
Revenues
(dollars in thousands, except
per share amounts)
Transaction fees and commissions
$
335,451
$
266,598
Subscription fees
49,681
44,374
LSEG market data fees
20,500
15,594
Other
3,107
2,683
Total revenue
408,739
329,249
Expenses
Employee compensation and benefits
143,087
114,493
Depreciation and amortization
49,337
45,404
Technology and communications
21,310
17,567
General and administrative
10,854
13,920
Professional fees
11,800
11,176
Occupancy
4,673
4,123
Total expenses
241,061
206,683
Operating income
167,678
122,566
Interest income
21,060
12,940
Interest expense
(1,718
)
(449
)
Other income (loss), net
—
341
Income before taxes
187,020
135,398
Provision for income taxes
(43,638
)
(33,205
)
Net income
143,382
102,193
Less: Net income attributable to
non-controlling interests
17,240
14,337
Net income attributable to Tradeweb
Markets Inc.
$
126,142
$
87,856
Earnings per share attributable to
Tradeweb Markets Inc. Class A and B common stockholders:
Basic
$
0.59
$
0.42
Diluted
$
0.59
$
0.42
Weighted average shares outstanding:
Basic
212,709,872
208,105,437
Diluted
214,660,853
210,143,734
TRADEWEB MARKETS INC.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
Three Months Ended
Reconciliation of Net Income to
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted
EBIT Margin
March 31,
2024
2023
(dollars in thousands)
Net income
$
143,382
$
102,193
Merger and acquisition transaction and
integration costs (1)
3,614
585
Interest income
(21,060
)
(12,940
)
Interest expense
1,718
449
Depreciation and amortization
49,337
45,404
Stock-based compensation expense (2)
1,183
850
Provision for income taxes
43,638
33,205
Foreign exchange (gains) / losses (3)
(2,284
)
2,798
Tax receivable agreement liability
adjustment (4)
—
—
Other (income) loss, net
—
(341
)
Adjusted EBITDA
$
219,528
$
172,203
Less: Depreciation and amortization
(49,337
)
(45,404
)
Add: D&A related to acquisitions and
the Refinitiv Transaction (5)
34,367
31,617
Adjusted EBIT
$
204,558
$
158,416
Net income margin (6)
35.1
%
31.0
%
Adjusted EBITDA margin (6)
53.7
%
52.3
%
Adjusted EBIT margin (6)
50.0
%
48.1
%
(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.
(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
Reconciliation of Net Income to
Adjusted Net Income and Adjusted Diluted EPS
March 31,
2024
2023
(dollars in thousands, except
per share amounts)
Earnings per diluted share
$
0.59
$
0.42
Net income attributable to Tradeweb
Markets Inc.
$
126,142
$
87,856
Net income attributable to non-controlling
interests (1)
17,240
14,337
Net income
143,382
102,193
Provision for income taxes
43,638
33,205
Merger and acquisition transaction and
integration costs (2)
3,614
585
D&A related to acquisitions and the
Refinitiv Transaction (3)
34,367
31,617
Stock-based compensation expense (4)
1,183
850
Foreign exchange (gains) / losses (5)
(2,284
)
2,798
Tax receivable agreement liability
adjustment (6)
—
—
Other (income) loss, net
—
(341
)
Adjusted Net Income before income
taxes
223,900
170,907
Adjusted income taxes (7)
(55,975
)
(41,872
)
Adjusted Net Income
$
167,925
$
129,035
Adjusted Diluted EPS (8)
$
0.71
$
0.54
(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.
(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 25.0% and 24.5% applied to Adjusted
Net Income before income taxes for the three months ended March 31,
2024 and 2023, respectively.
(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
March 31,
2024
2023
Diluted weighted average shares of Class A
and Class B common stock outstanding
214,660,853
210,143,734
Weighted average of other participating
securities (1)
159,957
291,772
Assumed exchange of LLC Interests for
shares of Class A or Class B common stock (2)
23,077,973
26,340,754
Adjusted diluted weighted average shares
outstanding
237,898,783
236,776,260
Adjusted Net Income (in thousands)
$
167,925
$
129,035
Adjusted Diluted EPS
$
0.71
$
0.54
(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
Reconciliation of Operating Expenses to
Adjusted Expenses
March 31,
2024
2023
(dollars in thousands)
Operating expenses
$
241,061
$
206,683
Merger and acquisition transaction and
integration costs (1)
(3,614
)
(585
)
D&A related to acquisitions and the
Refinitiv Transaction (2)
(34,367
)
(31,617
)
Stock-based compensation expense (3)
(1,183
)
(850
)
Foreign exchange gains / (losses) (4)
2,284
(2,798
)
Adjusted Expenses
$
204,181
$
170,833
(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.
(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
March 31,
Reconciliation of Cash Flow from
Operating Activities to Free Cash Flow
2024
2023
(dollars in thousands)
Cash flow from operating activities
$
713,163
$
658,419
Less: Capitalization of software
development costs
(44,078
)
(37,738
)
Less: Purchases of furniture, equipment
and leasehold improvements
(18,239
)
(21,032
)
Free Cash Flow
$
650,846
$
599,649
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
EPS: Net income attributable to
Tradeweb Markets Inc.
March 31,
2024
2023
(dollars in thousands, except
per share amounts)
Numerator:
Net income attributable to Tradeweb
Markets Inc.
$
126,142
$
87,856
Less: Distributed and undistributed
earnings allocated to unvested RSUs and unsettled vested PRSUs
(1)
(95
)
(123
)
Net income attributable to outstanding
shares of Class A and Class B common stock - Basic and Diluted
$
126,047
$
87,733
Denominator:
Weighted average shares of Class A and
Class B common stock outstanding - Basic
212,709,872
208,105,437
Dilutive effect of PRSUs
500,978
286,563
Dilutive effect of options
599,574
1,469,219
Dilutive effect of RSUs
444,066
282,515
Dilutive effect of PSUs
406,363
—
Weighted average shares of Class A and
Class B common stock outstanding - Diluted
214,660,853
210,143,734
Earnings per share - Basic
$
0.59
$
0.42
Earnings per share - Diluted
$
0.59
$
0.42
(1)
During the three months ended March 31,
2024 and 2023, there was a total of 159,957 and 291,772,
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
March 31,
2024
2023
$ Change
% Change
Revenues
Variable
Fixed
Variable
Fixed
Variable
Fixed
Variable
Fixed
(dollars in thousands)
Rates
$
153,697
$
60,396
$
114,168
$
56,337
$
39,529
$
4,059
34.6
%
7.2
%
Credit
108,028
7,811
82,364
6,653
25,664
1,158
31.2
%
17.4
%
Equities
24,674
2,376
23,897
2,306
777
70
3.3
%
3.0
%
Money Markets
12,563
4,228
10,414
4,393
2,149
(165
)
20.6
%
(3.8
)%
Market Data
132
28,890
—
22,434
132
6,456
N/M
28.8
%
Other
—
5,944
—
6,283
—
(339
)
—
(5.4
)%
Total revenue
$
299,094
$
109,645
$
230,843
$
98,406
$
68,251
$
11,239
29.6
%
11.4
%
N/M = not meaningful
TRADEWEB MARKETS INC.
AVERAGE VARIABLE FEES PER MILLION
DOLLARS OF VOLUME (UNAUDITED)
Three Months Ended
March 31,
YoY
2024
2023
% Change
Rates
$
1.98
$
2.09
(5.5
)%
Rates Cash
$
2.56
$
2.54
0.6
%
Rates Derivatives
$
1.65
$
1.78
(7.2
)%
Rates Derivatives (greater than 1
year)
$
2.49
$
3.03
(17.7
)%
Other Rates Derivatives (1)
$
0.22
$
0.17
30.1
%
Credit
$
50.39
$
40.75
23.6
%
Cash Credit (2)
$
150.84
$
157.61
(4.3
)%
Credit Derivatives, China Bonds and U.S.
Cash EP
$
6.57
$
6.81
(3.5
)%
Equities
$
14.68
$
19.64
(25.3
)%
Equities Cash
$
25.95
$
30.33
(14.5
)%
Equities Derivatives
$
5.06
$
7.21
(29.8
)%
Money Markets
$
0.36
$
0.38
(6.1
)%
Total
$
2.56
$
2.71
(5.5
)%
Total excluding Other Rates Derivatives
(3)
$
2.99
$
3.20
(6.6
)%
(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) U.S. High Grade and High Yield electronically
processed (“EP”) activity.
(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 Q1
2023 Q1
YoY
Asset Class
Product
ADV (USD mm)
Volume (USD mm)
ADV (USD mm)
Volume (USD mm)
ADV
Rates
Cash
$
461,826
$
28,270,241
$
362,707
$
22,574,171
27.33
%
U.S. Government Bonds
196,469
11,984,583
144,109
8,934,755
36.33
%
European Government Bonds
50,267
3,166,836
42,636
2,728,696
17.90
%
Mortgages
204,083
12,449,078
170,263
10,556,298
19.86
%
Other Government Bonds
11,007
669,744
5,699
354,422
93.14
%
Derivatives
798,871
49,421,660
508,675
31,989,758
57.05
%
Swaps/Swaptions ≥ 1Y
502,364
31,037,693
285,896
17,965,246
75.72
%
Swaps/Swaptions < 1Y
288,504
17,892,088
221,202
13,926,695
30.43
%
Futures
8,003
491,880
1,577
97,816
407.44
%
Total
1,260,697
77,691,901
871,381
54,563,928
44.68
%
Credit
Cash
17,418
1,061,689
11,497
714,885
51.50
%
U.S. High Grade - Fully
Electronic
6,709
409,248
4,134
256,281
62.31
%
U.S. High Grade - Electronically
Processed
3,413
208,203
3,137
194,474
8.81
%
U.S. High Yield - Fully
Electronic
749
45,670
674
41,777
11.11
%
U.S. High Yield - Electronically
Processed
324
19,771
373
23,102
(13.02
)%
European Credit
2,519
158,725
2,046
130,939
23.15
%
Municipal Bonds
323
19,701
311
19,306
3.72
%
Chinese Bonds
3,094
182,546
714
42,133
333.26
%
Other Credit Bonds
287
17,824
109
6,874
163.71
%
Derivatives
17,502
1,082,282
20,806
1,306,491
(15.88
)%
Swaps
17,502
1,082,282
20,806
1,306,491
(15.88
)%
Total
34,920
2,143,970
32,303
2,021,376
8.10
%
Equities
Cash
12,613
775,061
10,491
656,093
20.23
%
U.S. ETFs
9,771
596,044
7,663
475,099
27.51
%
European ETFs
2,842
179,017
2,828
180,994
0.48
%
Derivatives
14,838
906,382
9,043
562,478
64.09
%
Convertibles/Swaps/Options
10,364
633,167
6,056
376,950
71.13
%
Futures
4,475
273,215
2,987
185,528
49.80
%
Total
27,451
1,681,443
19,534
1,218,571
40.53
%
Money Markets
Cash
576,573
35,371,612
442,401
27,583,799
30.33
%
Repurchase Agreements (Repo)
557,392
34,198,898
426,145
26,574,942
30.80
%
Other Money Markets
19,180
1,172,715
16,257
1,008,856
17.98
%
Total
576,573
35,371,612
442,401
27,583,799
30.33
%
ADV (USD mm)
Volume (USD mm)
ADV (USD mm)
Volume (USD mm)
YoY
Total
$
1,899,641
$
116,888,926
$
1,365,620
$
85,387,674
39.1
%
(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 100%.
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
months ended March 31, 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 U.S.
dollars, we must translate non-U.S. dollar revenues and expenses
into U.S. dollars. Constant currency change, which is a non-GAAP
financial measure, is defined as change excluding the effects of
foreign currency fluctuations. Constant currency information is
calculated by translating the current period and prior period’s
results using the annual average exchange rates for the prior
period. We use constant currency change as a supplemental metric to
evaluate our underlying performance between periods by removing the
impact of foreign currency fluctuations. We present certain
constant currency change information because we believe it provides
investors and analysts a useful comparison of our results and
trends between periods. This information should be considered in
addition to, not as a substitute for, results reported in
accordance with GAAP.
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/20240423252937/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
Tradeweb Markets (NASDAQ:TW)
過去 株価チャート
から 4 2024 まで 5 2024
Tradeweb Markets (NASDAQ:TW)
過去 株価チャート
から 5 2023 まで 5 2024