NASDAQ$TW

Tradeweb Markets Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Tradeweb's financial performance for Q2 2021 was reported, highlighting revenue growth, increased trading volumes, and strategic acquisitions.

Tradeweb reported a strong second quarter in 2021, with a 23.0% increase in quarterly revenues to $260.8 million and a 25.5% increase in average daily volume (ADV) to $976.9 billion. The company's net income increased by 56.2% to $66.2 million, and adjusted EBITDA margin reached 50.6%.

  • Quarterly revenues increased by 23.0% year-over-year to $260.8 million.
  • Average daily volume (ADV) increased by 25.5% year-over-year to $976.9 billion.
  • Net income increased by 56.2% year-over-year to $66.2 million.
  • Adjusted EBITDA margin was 50.6%.

Headline financials

Total Revenue

$261M

Previous: $212M+23.0%
EPS (adj)

$0.39

Previous: $0.30+30.0%
Adjusted EBITDA Margin

50.6%

Previous: 47.8%+5.9%
Average Daily Volume

$977B

Previous: $778B+25.5%
Capital Expenditures

-$8.54M

Previous: -$4.38M-95.0%
Free Cash Flow

$46.8M

Previous: $26.1M+79.1%
Net Income

$55.3M

Previous: $30.5M+81.4%
Operating Income

$83.8M

Previous: $55.6M+50.6%
Gross Profit

$162M

Previous: $212M-23.4%
Cash & Equivalents

$681M

Previous: $560M+21.7%
Total Assets

$5.86B

Previous: $5.46B+7.3%
Stock-Based Comp

$12.4M

Previous: $10.3M+19.9%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$261M

Q2 2021+23%vs Q2 2020
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Revenue by segment

Tradeweb · $261M total across 6 segments · Q2 2021

  • Rates
    $134M+18.8%
  • Credit
    $72.2M+47.1%
  • Market Data
    $20M+8.2%
  • Equities
    $17.4M+12.9%
  • Money Markets
    $11.3M+7.6%
  • Other
    $5.88M+2.5%

Forward guidance

Tradeweb updated its full-year 2021 guidance to incorporate the NFI acquisition, expectation of a strong revenue environment in the second half of 2021, and increased investment to support growth businesses.

Tailwinds

  • Expectation of a strong revenue environment in the second half of 2021
  • Increased investment to support growth businesses
  • Adjusted Expenses: $565 - $580 million
  • Assumed non-GAAP tax rate: 22.0%
  • Capital expenditures and capitalization of software development: $49 - $53 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 Q2 2021

Historical avgQ2 2021

+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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