NASDAQ$TW

Tradeweb Markets Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Tradeweb reported financial results for Q2 2023, showing an increase in quarterly revenues and average daily volume.

Tradeweb reported a 4.5% increase in quarterly revenues, reaching $310.6 million. The average daily volume increased by 10.2% to $1.3 trillion. Net income increased by 24.9% to $101.9 million, and adjusted net income increased by 10.8% to $123.7 million.

  • Quarterly revenues increased by 4.5% to $310.6 million.
  • Average daily volume increased by 10.2% to $1.3 trillion.
  • Net income increased by 24.9% to $101.9 million.
  • Adjusted net income increased by 10.8% to $123.7 million.

Headline financials

Total Revenue

$311M

Previous: $297M+4.5%
EPS (adj)

$0.52

Previous: $0.47+10.6%
Adjusted EBITDA Margin

52.5%

Previous: 52.4%+0.2%
Average Daily Volume

$1.3T

Previous: $1.18T+10.3%
Capital Expenditures

-$11.2M

Previous: -$14.8M+24.7%
Free Cash Flow

$77.9M

Previous: $53.5M+45.6%
Net Income

$89.1M

Previous: $68.3M+30.3%
Operating Income

$116M

Previous: $107M+9.1%
Gross Profit

$207M

Previous: $187M+10.4%
Cash & Equivalents

$1.4B

Previous: $960M+45.4%
Total Assets

$6.49B

Previous: $5.99B+8.4%
Stock-Based Comp

$15.7M

Previous: $21M-25.0%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$311M

Q2 2023+4.5%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Tradeweb · $311M total across 6 segments · Q2 2023

  • Rates
    $160M+5.8%
  • Credit
    $84M+0.1%
  • Market Data
    $22.8M+8.3%
  • Equities
    $22.1M-2.3%
  • Money Markets
    $15.8M+30.1%
  • Other
    $5.46M-4.4%

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 Q2 2023

Historical avgQ2 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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