Tradeweb Reports First Quarter 2024 Financial Results
53.7% adjusted EBITDA margin and
“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
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 |
$ |
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
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
-
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 theECB . - 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 andDubai 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 atMarch 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 ofMarch 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 onJune 17, 2024 to stockholders of record as ofJune 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
- 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
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
|
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 |
|
$ |
126,142 |
|
|
$ |
87,856 |
|
|
|
|
|
|
||||
Earnings per share attributable to |
|
|
|
|
||||
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 |
|
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 |
|
|
||||||
|
|
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 |
|
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands, except per share amounts) |
|||||||
Earnings per diluted share |
|
$ |
0.59 |
|
|
$ |
0.42 |
|
Net income attributable to |
|
$ |
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 |
(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 |
||||
|
|
|||||
|
|
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 |
|
|
||||||
|
|
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 |
||||||
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 |
|
BASIC AND DILUTED EPS CALCULATIONS (UNAUDITED) |
||||||||
The following table summarizes the basic and diluted earnings per share calculations for |
||||||||
|
|
Three Months Ended |
||||||
EPS: Net income attributable to |
|
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands, except per share amounts) |
|||||||
Numerator: |
|
|
|
|
||||
Net income attributable to |
|
$ |
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 |
REVENUES BY ASSET CLASS (UNAUDITED) |
|||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
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 |
AVERAGE VARIABLE FEES PER MILLION DOLLARS OF VOLUME (UNAUDITED) |
|||||||||
|
|
Three Months Ended |
|
|
|||||
|
|
|
|
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, |
|
$ |
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) |
(3) |
Included to contextualize the impact of short-tenored Swaps/Swaptions and Rates Futures on totals for all periods presented. |
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 |
% |
||
|
|
|
|
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 |
% |
||
|
|
|
|
6,709 |
|
409,248 |
|
|
4,134 |
|
256,281 |
|
62.31 |
% |
||
|
|
|
|
3,413 |
|
208,203 |
|
3,137 |
|
194,474 |
|
8.81 |
% |
|||
|
|
|
|
749 |
|
45,670 |
|
|
674 |
|
41,777 |
|
11.11 |
% |
||
|
|
|
|
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 |
% |
||
|
|
|
|
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 |
To access historical traded volumes, go to https://www.tradeweb.com/newsroom/monthly-activity-reports/
BASIS OF PRESENTATION
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
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
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
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,
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423252937/en/
Investor Relations
Ashley.Serrao@Tradeweb.com
Media Relations
Daniel.Noonan@Tradeweb.com
Source: