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Tradeweb Reports First Quarter 2024 Financial Results
$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 greater-than or equal to 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 %
$ 214,093 $ 170,505 25.6 % 25.3 %
Rates
$ 115,839 $ 89,017 30.1 % 29.8 %
Credit
$ 27,050 $ 26,203 3.2 % 2.8 %
Equities
$ 16,791 $ 14,807 13.4 % 13.1 %
Money Markets
$ 29,022 $ 22,434 29.4 % 28.8 %
Market Data
$ 5,944 $ 6,283 (5.4) % (5.4) %
Other
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 +179
bps bps
Adjusted EBIT (1) $ 204,558 $ 158,416 29.1 % 29.8 %
Adjusted EBIT margin (1) 50.0 % 48.1 % +193 +231
bps bps
Adjusted Net Income (1) $ 167,925 $ 129,035 30.1 % 30.8 %
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 % -------------------- ----------- -------------------- ----- -------------------- -------------------- ---- -------------------- ----- --
(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.
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 greater-than or equal to 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(R) 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)
$ 335,451 $ 266,598
Transaction fees and commissions
49,681 44,374
Subscription fees
20,500 15,594
LSEG market data fees
3,107 2,683
Other
-------------------- -------------- -------------------- -------------------- ----------- --------------------
408,739 329,249
Total revenue
Expenses
143,087 114,493
Employee compensation and benefits
49,337 45,404
Depreciation and amortization
21,310 17,567
Technology and communications
10,854 13,920
General and administrative
11,800 11,176
Professional fees
4,673 4,123
Occupancy
-------------------- -------------- -------------------- -------------------- ----------- --------------------
241,061 206,683
Total expenses
-------------------- -------------- -------------------- -------------------- ----------- --------------------
Operating income 167,678 122,566
-------------------- -------------- -------------------- -------------------- ----------- --------------------
21,060 12,940
Interest income
(1,718 ) (449 )
Interest expense
-- 341
Other income (loss), net
-------------------- -------------- -------------------- -------------------- ----------- --------------------
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:
$ 0.59 $ 0.42
Basic
==================== ============== ==================== ==================== =========== ====================
$ 0.59 $ 0.42
Diluted
==================== ============== ==================== ==================== =========== ====================
Weighted average shares outstanding:
212,709,872 208,105,437
Basic
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 %
(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).
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
==================== ==================== ==================== ==================== ==================== ====================
(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.
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
==================== ==================== ==================== ===========
(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.
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 )
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(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.
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 )
-------------------- ------- -------------------- -------------------- ------- --------------------
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
500,978 286,563
Dilutive effect of PRSUs
599,574 1,469,219
Dilutive effect of options
444,066 282,515
Dilutive effect of RSUs
406,363 --
Dilutive effect of PSUs
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
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
==================== ==================== ==================== ==================== ==================== ====================
(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 %
==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====================
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 )%
$ 2.56 $ 2.54 0.6 %
Rates Cash
$ 1.65 $ 1.78 (7.2 )%
Rates Derivatives
$ 2.49 $ 3.03 (17.7 )%
Rates Derivatives (greater than 1 year)
$ 0.22 $ 0.17 30.1 %
Other Rates Derivatives (1)
Credit $ 50.39 $ 40.75 23.6 %
$ 150.84 $ 157.61 (4.3 )%
Cash Credit (2)
$ 6.57 $ 6.81 (3.5 )%
Credit Derivatives, China Bonds and U.S. Cash EP
Equities $ 14.68 $ 19.64 (25.3 )%
$ 25.95 $ 30.33 (14.5 )%
Equities Cash
$ 5.06 $ 7.21 (29.8 )%
Equities Derivatives
Money Markets $ 0.36 $ 0.38 (6.1 )%
Total $ 2.56 $ 2.71 (5.5 )%
(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.
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 greater-than or equal to 1Y 502,364 31,037,693 285,896 17,965,246 75.72 %
Swaps/Swaptions 288,504 17,892,088 221,202 13,926,695