NASDAQ$TW

Tradeweb Markets Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Tradeweb reported financial results for the quarter ended March 31, 2023.

Tradeweb's Q1 2023 results showed strong growth with a 5.7% increase in quarterly revenues to $329.2 million and a record average daily volume of $1.4 trillion, up 16.2% year-over-year. The company reported a net income of $102.2 million and an adjusted net income of $129.0 million, representing increases of 4.9% and 12.2% respectively. Adjusted EBITDA margin was 52.3%, and adjusted diluted EPS was $0.54.

  • Quarterly revenues increased by 5.7% to $329.2 million.
  • Record average daily volume (ADV) of $1.4 trillion, up 16.2% year-over-year.
  • Net income increased by 4.9% to $102.2 million.
  • Adjusted diluted earnings per share was $0.54.

Headline financials

Total Revenue

$329M

Previous: $311M+5.7%
EPS (adj)

$0.54

Previous: $0.48+12.5%
Adjusted EBITDA Margin

52.3%

No prior period
Average Daily Volume

$1.4T

Previous: $1.18T+19.1%
Capital Expenditures

-$6.88M

Previous: -$9.06M+24.1%
Free Cash Flow

$81M

Previous: $73.9M+9.6%
Net Income

$87.9M

Previous: $83M+5.9%
Operating Income

$123M

Previous: $112M+9.8%
Gross Profit

$215M

Previous: $193M+11.0%
Cash & Equivalents

$1.23B

Previous: $828M+48.9%
Total Assets

$6.24B

Previous: $6B+4.0%
Stock-Based Comp

$11.6M

Previous: $13.7M-15.3%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$329M

Q1 2023+5.7%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Tradeweb · $329M total across 6 segments · Q1 2023

  • Rates
    $171M+6.3%
  • Credit
    $89M+3.1%
  • Equities
    $26.2M-1.3%
  • Market Data
    $22.4M+5.0%
  • Money Markets
    $14.8M+28.5%
  • Other
    $6.28M+16.3%

Forward guidance

Tradeweb provided full-year 2023 guidance with the following expectations:

Tailwinds

  • Adjusted Expenses: $669 - 714 million
  • Acquisition and Refinitiv Transaction related depreciation and amortization expense: $127 million
  • Assumed non-GAAP tax rate: ~24% - 25%
  • Cash costs of capital expenditures and capitalized software development: $56 - 62 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.2%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+4.8%

Avg return

30 days after

60%

18 / 30 earnings

Positive

+10.8%

Q2 2023

Best reaction

-8.5%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.2%+0.1%-10.9%
Q4 2025+8.6%+15.8%+23.6%
Q3 2025-1.2%-0.6%+3.2%
Q1 2025+0.7%+5.0%+5.1%
Q4 2024-1.4%-0.6%+6.4%
Q3 2024-3.4%-3.3%+3.1%
Q2 2024-1.2%+1.9%+8.6%
Q1 2024-1.1%-1.2%+9.0%
Q4 2023+2.1%+5.2%+6.4%
Q3 2023+5.2%+7.9%+14.4%
Q2 2023+10.8%+9.0%+14.3%
Q1 2023+1.0%+1.2%-1.0%
Q4 2022-4.8%-1.2%-1.4%
Q3 2022+3.6%+3.6%+8.2%
Q2 2022+0.7%+3.2%-4.3%
Q1 2022-8.5%-11.4%-11.4%
Q4 2021-0.1%+1.0%+4.0%
Q3 2021+2.3%+5.0%+10.2%
Q2 2021-0.5%+0.4%+2.1%
Q1 2021+2.2%+2.3%+5.4%
Q4 2020+1.0%+5.1%+11.7%
Q3 2020-6.5%-5.7%+0.1%
Q2 2020-1.0%-0.7%+4.6%
Q1 2020+8.8%+9.9%+16.3%
Q4 2019+2.5%+7.1%-6.0%
Q4 2018+3.4%+4.5%+9.5%
Q3 2018+3.4%+4.5%+9.5%
Q3 2019+5.2%+6.1%+11.9%
Q2 2019-1.4%-0.8%-8.4%
Q1 2019+0.4%+2.2%-0.6%
Q2 2018
Q1 2018
Q4 2017
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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