NASDAQ$TW
Tradeweb Markets Inc. · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Tradeweb reported strong financial results for Q4 2020, marked by record average daily volumes and revenue growth across various asset classes.
Tradeweb Markets Inc. reported an 18.1% increase in quarterly gross revenues, reaching $233.1 million. The company also saw a 30.9% increase in record average daily volume (ADV) for the quarter, driven by growth in U.S. High Yield bonds, Chinese bonds, and Repos. Net income was $66.4 million, and adjusted net income was $80.5 million, representing increases of 16.0% and 33.1%, respectively.
- Quarterly gross revenues increased by 18.1% year over year, reaching $233.1 million.
- Record average daily volume (ADV) for the quarter increased by 30.9% year over year, totaling $897.9 billion.
- Net income increased by 16.0% to $66.4 million, and adjusted net income increased by 33.1% to $80.5 million.
- Adjusted EBITDA margin was 49.2%, resulting in $114.6 million adjusted EBITDA for the quarter.
Headline financials
Revenue & EPS history
Tradeweb · Revenue · Quarterly
$233M
Revenue by segment
Tradeweb · $233M total across 6 segments · Q4 2020
- Rates$122M+13.2%52.2%
- Credit$59.3M+36.1%25.4%
- Market Data$20.9M+7.8%9.0%
- Equities$15M+28.7%6.4%
- Money Markets$10.4M+3.5%4.5%
- Other$5.87M+13.4%2.5%
Forward guidance
Tradeweb provided full-year 2021 guidance, including adjusted expenses, acquisition and Refinitiv Transaction related depreciation and amortization expense, assumed non-GAAP tax rate, and capital expenditures and capitalization of software development.
Tailwinds
- Adjusted Expenses: $530 - $560 million
- Acquisition and Refinitiv Transaction related depreciation and amortization expense: $120 million
- Assumed non-GAAP tax rate: 22.0%
- Capital expenditures and capitalization of software development: $45 - $50 million
- Volumes off to a strong start
Headwinds
- Non-GAAP adjusted expense guidance does not include any expenses tied to our recently announced acquisition of Nasdaq’s U.S. fixed income electronic trading platform.
- 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.
- The potential impacts of COVID-19 remain inherently uncertain
- General market conditions
- Prevailing price and trading volumes of our Class A common stock
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 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
| 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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