NASDAQ$TW

Tradeweb Markets Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Tradeweb reported robust year-over-year revenue growth driven by strong contributions from multiple asset classes.

Tradeweb Markets Inc. reported financial results for Q2 2022. Quarterly revenues increased by 13.9% to $297.1 million. Average daily volume increased by 20.4% to $1.2 trillion. Net income increased by 23.2% to $81.6 million, and adjusted net income increased by 19.3% to $111.7 million.

  • Quarterly revenues increased 13.9% (17.8% on a constant currency basis) compared to prior year period.
  • Average daily volume (“ADV”) for the quarter increased 20.4% compared to prior year period, with record ADV in swaps/swaptions ≥ 1-year; fully electronic U.S. High Grade; municipal bonds and repurchase agreements.
  • Net income and adjusted net income for the quarter increased of 23.2% and 19.3% respectively from prior year period.
  • Adjusted EBITDA margin was 52.4% and adjusted EBITDA was $155.6 million for the quarter, compared to 50.6% and $131.9 million respectively for prior year period.

Headline financials

Total Revenue

$297M

Previous: $261M+13.9%
EPS (adj)

$0.47

Previous: $0.39+20.5%
Adjusted EBITDA Margin

52.4%

Previous: 50.6%+3.6%
Average Daily Volume

$1.18T

Previous: $977B+20.4%
Capital Expenditures

-$14.8M

Previous: -$8.54M-73.5%
Free Cash Flow

$53.5M

Previous: $46.8M+14.4%
Net Income

$68.3M

Previous: $55.3M+23.6%
Operating Income

$107M

Previous: $83.8M+27.2%
Gross Profit

$187M

Previous: $162M+15.3%
Cash & Equivalents

$960M

Previous: $681M+40.9%
Total Assets

$5.99B

Previous: $5.86B+2.1%
Stock-Based Comp

$21M

Previous: $12.4M+69.0%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$297M

Q2 2022+13.9%vs Q2 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Tradeweb · $297M total across 6 segments · Q2 2022

  • Rates
    $152M+13.1%
  • Credit
    $84M+16.3%
  • Equities
    $22.7M+30.2%
  • Market Data
    $21M+5.1%
  • Money Markets
    $12.2M+7.3%
  • Other
    $5.71M-3.0%

Forward guidance

Full-Year 2022 guidance is unchanged from previous confirmation on July 13, 2022.

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 2022

Historical avgQ2 2022

+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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