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Mar 31, 2024
Tradeweb Q1 2024 Earnings Report
Tradeweb reported a strong start to 2024, driven by broad-based organic growth and strategic milestones.
Key Takeaways
Tradeweb's Q1 2024 revenues reached $408.7 million, a 24.1% increase year-over-year, with an average daily volume of $1.9 trillion, up by 39.1%. Net income increased by 40.3% to $143.4 million, and adjusted net income rose by 30.1% to $167.9 million. The company finalized its acquisition of r8fin and agreed to acquire ICD, expanding its client reach.
Revenues increased by 24.1% to $408.7 million compared to the prior year period.
Average daily volume (ADV) increased by 39.1% to $1.9 trillion compared to the prior year period, with records in multiple asset classes.
Net income increased by 40.3% to $143.4 million, and adjusted net income increased by 30.1% to $167.9 million.
Tradeweb captured a record 17.6% share of U.S. High Grade TRACE, reflecting growth in a strategic focus area.
Revenue by Segment
Forward Guidance
Tradeweb provided full-year 2024 guidance, expecting adjusted expenses to trend toward the top end of the $755 - 805 million range. Acquisition and Refinitiv transaction-related depreciation and amortization expense is projected at $142 million. The assumed non-GAAP tax rate is approximately 24.5% - 25.5%. Cash costs of non-acquisition capital expenditures and capitalized software development are estimated at $75 - 83 million. LSEG Market Data Contract Revenue is expected to be ~$80 million in 2024 and ~$90 million in 2025.
Positive Outlook
- 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)
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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