Tradeweb Markets Inc. · Q1 2024 earnings

Briefing

Tradeweb reported a strong start to 2024, driven by broad-based organic growth and strategic milestones.

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.

Headline financials

Revenue & EPS history

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.