Tradeweb Markets Inc. · Q4 2023 earnings

Briefing

Tradeweb's financial performance for Q4 2023 demonstrated strong growth and profitability.

Tradeweb reported a strong fourth quarter and full year 2023, marked by a 26.3% increase in quarterly revenues to $370.0 million and a 56.9% increase in average daily volume (ADV) to $1.7 trillion. The company achieved record market share in fully electronic U.S. High Grade TRACE, U.S. government bonds, equity convertibles/swaps/options, global repurchase agreements and swaps/swaptions. Net income was reported at $103.7 million, and adjusted net income reached $151.9 million.

• Quarterly revenues increased by 26.3% to $370.0 million.
• Average daily volume (ADV) increased by 56.9% to $1.7 trillion.
• Net income increased by 4.8% to $103.7 million.
• Adjusted EBITDA margin was 53.0% with adjusted EBITDA of $195.9 million.

Headline financials

Revenue & EPS history

Tradeweb provided full-year 2024 guidance, including adjusted expenses between $755 - 805 million, acquisition and Refinitiv transaction related depreciation and amortization expense of $142 million, an assumed non-GAAP tax rate of approximately 24.5 - 25.5%, cash costs of non-acquisition capital expenditures and capitalized software development between $75 - 83 million, and LSEG Market Data Contract Revenues of ~$80M.