NASDAQ$TW

Tradeweb Markets Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Tradeweb reported strong organic growth and strategic investments, leading to a 30.4% revenue increase. The company achieved record ADV in rates, money markets, and credit, including a record 18.8% share of fully electronic U.S. high grade TRACE. Strategic acquisitions and partnerships were pursued to expand client reach and technological capabilities.

Tradeweb reported a strong second quarter with a 30.4% increase in revenue, reaching $405.0 million. The company saw a 48.3% increase in average daily volume (ADV), hitting $1.9 trillion, driven by records in rates, money markets, and credit. Net income increased by 33.8% to $136.4 million, and adjusted net income rose by 34.7% to $166.7 million.

  • Revenue increased by 30.4% year-over-year, reaching $405.0 million.
  • Average daily volume (ADV) increased by 48.3% year-over-year, reaching $1.9 trillion.
  • Net income increased by 33.8% year-over-year, reaching $136.4 million.
  • Adjusted diluted earnings per share increased by 34.6% to $0.70.

Headline financials

Total Revenue

$405M

Previous: $311M+30.4%
EPS

$0.55

Previous: $0.52+5.8%
Adjusted EBITDA Margin

53.5%

Previous: 52.5%+1.9%
Average Daily Volume

$1.96T

Previous: $1.3T+51.2%
Adjusted EBITDA

$217M

No prior period
Capital Expenditures

-$11.4M

Previous: -$11.2M-2.2%
Free Cash Flow

$108M

Previous: $77.9M+38.4%
Net Income

$119M

Previous: $89.1M+33.9%
Operating Income

$162M

Previous: $116M+39.7%
Cash & Equivalents

$1.72B

Previous: $1.4B+23.1%
Total Assets

$7.28B

Previous: $6.49B+12.2%
Stock-Based Comp

$23.7M

Previous: $15.7M+50.9%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$405M

Q2 2024+30.4%vs Q2 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 updated its full-year 2024 guidance, reflecting higher expenses and expenditures due to strong business momentum and the anticipated closing of the ICD acquisition. The assumed non-GAAP tax rate and LSEG Market Data Contract Revenue guidance remain unchanged from the prior quarter.

Tailwinds

  • Adjusted Expenses: $830 - 860 million
  • Acquisition and Refinitiv Transaction related depreciation and amortization expense: $158 million
  • Assumed non-GAAP tax rate: ~ 24.5% - 25.5%
  • Cash capital expenditures and capitalized software development: $77 - 85 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 Q2 2024

Historical avgQ2 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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