NASDAQ$TW

Tradeweb Markets Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Tradeweb's business performed exceedingly well due to increased adoption of electronic trading and heightened debt issuance.

Tradeweb Markets Inc. reported a 5.9% increase in quarterly gross revenues, reaching $212.9 million. GAAP net income was $47.0 million, a decrease of 3.1%, while adjusted net income increased by 13.5% to $69.9 million. The company also saw a decrease of 4.5% in average daily volume (ADV).

  • Quarterly gross revenues increased 5.9% year over year.
  • Average daily volume decreased 4.5% year over year.
  • GAAP net income decreased 3.1% due to a higher tax rate and lower interest rates on cash balances.
  • Adjusted net income increased 13.5% from the prior year period.

Headline financials

Total Revenue

$213M

Previous: $201M+5.9%
EPS (adj)

$0.30

Previous: $0.27+11.1%
Adjusted EBITDA Margin

47.4%

Previous: 46.5%+1.9%
Average Daily Volume

$780B

Previous: $817B-4.5%
Capital Expenditures

-$6.48M

Previous: -$8.57M+24.3%
Free Cash Flow

$30.3M

Previous: $21M+44.1%
Net Income

$36.8M

Previous: $29.6M+24.3%
Operating Income

$58.5M

Previous: $58.3M+0.5%
Gross Profit

$213M

Previous: $201M+5.9%
Cash & Equivalents

$677M

Previous: $390M+73.7%
Total Assets

$5.54B

Previous: $5.62B-1.5%
Stock-Based Comp

$9.76M

Previous: $9.13M+6.8%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$213M

Q3 2020+5.9%vs Q3 2019
Beat estimate in 10 of 11 quarters(91%)
ActualEstimate

Revenue by segment

Tradeweb · $213M total across 6 segments · Q3 2020

  • Rates
    $116M
  • Credit
    $50.2M
  • Market Data
    $18.6M
  • Equities
    $11.9M
  • Money Markets
    $10.5M
  • Other
    $5.94M

Forward guidance

Tradeweb provided updated full-year 2020 guidance.

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 Q3 2020

Historical avgQ3 2020

+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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