Tradeweb Q4 2020 Earnings Report
Key Takeaways
Tradeweb Markets Inc. reported an 18.1% increase in quarterly gross revenues, reaching $233.1 million. The company also saw a 30.9% increase in record average daily volume (ADV) for the quarter, driven by growth in U.S. High Yield bonds, Chinese bonds, and Repos. Net income was $66.4 million, and adjusted net income was $80.5 million, representing increases of 16.0% and 33.1%, respectively.
Quarterly gross revenues increased by 18.1% year over year, reaching $233.1 million.
Record average daily volume (ADV) for the quarter increased by 30.9% year over year, totaling $897.9 billion.
Net income increased by 16.0% to $66.4 million, and adjusted net income increased by 33.1% to $80.5 million.
Adjusted EBITDA margin was 49.2%, resulting in $114.6 million adjusted EBITDA for the quarter.
Tradeweb
Tradeweb
Tradeweb Revenue by Segment
Forward Guidance
Tradeweb provided full-year 2021 guidance, including adjusted expenses, acquisition and Refinitiv Transaction related depreciation and amortization expense, assumed non-GAAP tax rate, and capital expenditures and capitalization of software development.
Positive Outlook
- Adjusted Expenses: $530 - $560 million
- Acquisition and Refinitiv Transaction related depreciation and amortization expense: $120 million
- Assumed non-GAAP tax rate: 22.0%
- Capital expenditures and capitalization of software development: $45 - $50 million
- Volumes off to a strong start
Challenges Ahead
- Non-GAAP adjusted expense guidance does not include any expenses tied to our recently announced acquisition of Nasdaq’s U.S. fixed income electronic trading platform.
- 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.
- The potential impacts of COVID-19 remain inherently uncertain
- General market conditions
- Prevailing price and trading volumes of our Class A common stock
Revenue & Expenses
Visualization of income flow from segment revenue to net income