NASDAQ$TW

Tradeweb Markets Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

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

Total Revenue

$409M

Previous: $329M+24.1%
EPS

$0.59

Previous: $0.54+9.3%
Average Daily Volume

$1.9T

Previous: $1.4T+36.0%
Capital Expenditures

-$6.59M

Previous: -$6.88M+4.2%
Free Cash Flow

$120M

Previous: $81M+47.6%
Net Income

$126M

Previous: $87.9M+43.6%
Operating Income

$168M

Previous: $123M+36.8%
Cash & Equivalents

$1.54B

Previous: $1.23B+25.3%
Total Assets

$7.4B

Previous: $6.24B+18.5%
Stock-Based Comp

$16.4M

Previous: $11.6M+41.3%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$409M

Q1 2024+24.1%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Tradeweb · $328M total across 6 segments · Q3 2023

  • Rates
    $173M+16.6%
  • Credit
    $90.1M+15.3%
  • Market Data
    $23M+8.2%
  • Equities
    $20.9M-1.8%
  • Money Markets
    $15.8M+21.5%
  • Other
    $5.85M+8.8%

Forward guidance

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.

Tailwinds

  • Adjusted Expenses: $755 - 805 million (trending toward top end of range)
  • Acquisition and Refinitiv Transaction related depreciation and amortization expense: $142 million
  • Assumed non-GAAP tax rate: ~ 24.5% - 25.5%
  • Cash costs of non-acquisition capital expenditures and capitalized software development: $75 - 83 million
  • LSEG Market Data Contract Revenue: ~$80 million (~$90 million in 2025)

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 2024

Historical avgQ1 2024

+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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