Sep 30, 2024

Tradeweb Q3 2024 Earnings Report

Tradeweb reported record quarterly revenues driven by strong growth and strategic acquisitions.

Key Takeaways

Tradeweb reported record quarterly revenues of $448.9 million, a 36.7% increase year-over-year, driven by record average daily volume (ADV) of $2.2 trillion, up 55% compared to the same period last year. The company achieved quarterly ADV records across rates, credit, and money markets, highlighting the success of organic expansion efforts and contributions from recent acquisitions.

Reported $448.9 million in quarterly revenues, a 36.7% increase year-over-year.

Achieved record average daily volume (ADV) of $2.2 trillion, up 55% compared to the same period last year.

Net income increased by 16.7% to $130.2 million.

Adjusted EBITDA increased by 40.8% to $239.8 million.

Total Revenue
$449M
Previous year: $328M
+36.7%
EPS
$0.75
Previous year: $0.55
+36.4%
Average Daily Volume (ADV)
$2.2T
Previous year: $1.4T
+57.1%
Gross Profit
$289M
Previous year: $212M
+36.0%
Cash and Equivalents
$1.17B
Previous year: $1.49B
-21.4%
Free Cash Flow
$288M
Previous year: $211M
+36.4%
Total Assets
$7.34B
Previous year: $6.5B
+12.8%

Tradeweb

Tradeweb

Tradeweb Revenue by Segment

Forward Guidance

Tradeweb updated its full-year 2024 guidance, expecting adjusted expenses to be between $855 and $875 million and LSEG Market Data Contract Revenue to be approximately $80 million.

Positive Outlook

  • Adjusted Expenses: $855 - 875 million (trending toward middle of range)
  • 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