NASDAQ$TW
Tradeweb Markets Inc. · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Tradeweb reported a strong fourth quarter and full-year financial results, driven by diversification and increased electronic trading adoption.
Tradeweb Markets Inc. reported a strong fourth quarter with a 10.5% increase in revenues to $197.3 million and a 95.4% increase in net income to $57.3 million. The company achieved record quarterly ADV in US high-grade and high-yield credit and record market share for US high-grade TRACE volume. Full-year ADV and revenues also reached record levels.
- Average daily volume (ADV) of $684.6 billion for the quarter increased 16.3%.
- Revenues of $197.3 million increased 10.5%.
- Net income of $57.3 million for the quarter compared to $29.3 million for the prior year period.
- Adjusted EBITDA margin of 46.9% for the quarter compared to 36.6% for the prior year period.
Headline financials
Revenue & EPS history
Tradeweb · Revenue · Quarterly
$197M
Revenue by segment
Tradeweb · $197M total across 6 segments · Q4 2019
- Rates$108M—54.5%
- Credit$43.5M—22.1%
- Market Data$19.4M—9.8%
- Equities$11.7M—5.9%
- Money Markets$10M—5.1%
- Other$5.17M—2.6%
Forward guidance
Tradeweb provided full-year 2020 guidance, including adjusted expenses of $495 - $510 million, an assumed non-GAAP tax rate of 22.0%, capital expenditures and capitalization of software of $45 - $50 million, and acquisition and Refinitiv Transaction related depreciation and amortization expense of $110 million.
Tailwinds
- Adjusted expenses of $495 - $510 million
- Includes approximately $5 million of new investments, primarily in data strategy and cybersecurity
- Includes approximately $3 million of duplicative rent expense
- Assumed non-GAAP tax rate of 22.0%
- Capital expenditures and capitalization of software of $45 - $50 million
Headwinds
- GAAP operating expenses and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement of foreign currency rates.
- Unpredictability in the movement of foreign currency rates
- Potential impacts from new investments in data strategy and cybersecurity
- Duplicative rent expense
- Factors that impact acquisition and Refinitiv Transaction related depreciation and amortization.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q4 2019
+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
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2025 | — | — | — | |
| 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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