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Tradeweb
🇺🇸 NASDAQ:TW
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•
Jun 30, 2024

Tradeweb Q2 2024 Earnings Report

Tradeweb reported strong organic growth and strategic investments, leading to a 30.4% revenue increase. The company achieved record ADV in rates, money markets, and credit, including a record 18.8% share of fully electronic U.S. high grade TRACE. Strategic acquisitions and partnerships were pursued to expand client reach and technological capabilities.

Key Takeaways

Tradeweb reported a strong second quarter with a 30.4% increase in revenue, reaching $405.0 million. The company saw a 48.3% increase in average daily volume (ADV), hitting $1.9 trillion, driven by records in rates, money markets, and credit. Net income increased by 33.8% to $136.4 million, and adjusted net income rose by 34.7% to $166.7 million.

Revenue increased by 30.4% year-over-year, reaching $405.0 million.

Average daily volume (ADV) increased by 48.3% year-over-year, reaching $1.9 trillion.

Net income increased by 33.8% year-over-year, reaching $136.4 million.

Adjusted diluted earnings per share increased by 34.6% to $0.70.

Total Revenue
$405M
Previous year: $311M
+30.4%
EPS
$0.7
Previous year: $0.52
+34.6%
Average Daily Volume (ADV)
$1.9T
Previous year: $1.3T
+46.5%
Gross Profit
$355M
Previous year: $207M
+71.8%
Cash and Equivalents
$1.72B
Previous year: $1.4B
+22.8%
Free Cash Flow
$281M
Previous year: $635M
-55.8%
Total Assets
$7.28B
Previous year: $6.49B
+12.2%

Tradeweb

Tradeweb

Tradeweb Revenue by Segment

Forward Guidance

Tradeweb updated its full-year 2024 guidance, reflecting higher expenses and expenditures due to strong business momentum and the anticipated closing of the ICD acquisition. The assumed non-GAAP tax rate and LSEG Market Data Contract Revenue guidance remain unchanged from the prior quarter.

Positive Outlook

  • Adjusted Expenses: $830 - 860 million
  • Acquisition and Refinitiv Transaction related depreciation and amortization expense: $158 million
  • Assumed non-GAAP tax rate: ~ 24.5% - 25.5%
  • Cash capital expenditures and capitalized software development: $77 - 85 million
  • LSEG Market Data Contract Revenue: ~$80 million (~$90 million in 2025)

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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