NASDAQ$TW

Tradeweb Markets Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Tradeweb reported record quarterly revenues driven by strong growth and strategic acquisitions.

Tradeweb reported record quarterly revenues of $448.9 million, a 36.7% increase year-over-year, driven by record average daily volume (ADV) of $2.2 trillion, up 55% compared to the same period last year. The company achieved quarterly ADV records across rates, credit, and money markets, highlighting the success of organic expansion efforts and contributions from recent acquisitions.

  • Reported $448.9 million in quarterly revenues, a 36.7% increase year-over-year.
  • Achieved record average daily volume (ADV) of $2.2 trillion, up 55% compared to the same period last year.
  • Net income increased by 16.7% to $130.2 million.
  • Adjusted EBITDA increased by 40.8% to $239.8 million.

Headline financials

Total Revenue

$449M

Previous: $328M+36.7%
EPS

$0.53

Previous: $0.55-3.6%
Adjusted EBITDA Margin

53.4%

Previous: 51.9%+2.9%
Average Daily Volume

$2.3T

Previous: $1.4T+64.5%
Adjusted EBITDA

$240M

Previous: $170M+40.8%
Quarterly Cash Dividend

$0.10

No prior period
Capital Expenditures

-$15.7M

Previous: -$17.5M+10.0%
Free Cash Flow

$98.2M

Previous: $81.1M+21.0%
Net Income

$114M

Previous: $98.6M+15.5%
Operating Income

$159M

Previous: $125M+27.7%
Cash & Equivalents

$1.17B

Previous: $1.49B-21.4%
Total Assets

$7.34B

Previous: $6.5B+12.8%
Stock-Based Comp

$26.2M

Previous: $17.3M+50.9%

Revenue & EPS history

Tradeweb · Revenue · Quarterly

$449M

Q3 2024+36.7%vs Q3 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, expecting adjusted expenses to be between $855 and $875 million and LSEG Market Data Contract Revenue to be approximately $80 million.

Tailwinds

  • Adjusted Expenses: $855 - 875 million (trending toward middle of range)
  • 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 Q3 2024

Historical avgQ3 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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