Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today reported financial results for the quarter ended
March 31, 2022.
$311.5 million quarterly revenues increased 13.9%
(15.9% on a constant currency basis) compared to prior year
period
$1.2 trillion average daily volume (“ADV”) for the
quarter, an increase of 10.9% compared to prior year period,
with record ADV in U.S. and European government bonds;
swaps/swaptions ≥ 1-year; fully electronic U.S. High Grade and
fully electronic U.S. High Yield credit; European credit; U.S. and
European ETFs; and Repurchase Agreements
$97.4 million net income and $115.1 million
adjusted net income for the quarter, increases of 19.5% and
13.3% respectively from prior year period
51.6% adjusted EBITDA margin or $160.6 million
adjusted EBITDA for the quarter, compared to 52.0% or $142.1
million respectively for prior year period
$0.40 diluted earnings per share (“Diluted EPS”) for the
quarter and $0.48 adjusted diluted earnings per share
$0.08 per share quarterly cash dividend declared;
$47.3 million of shares repurchased
Lee Olesky, Chairman and CEO, Tradeweb Markets:
“Tradeweb surpassed $300 million in quarterly revenue for the
first time in our history, showcasing the diversity of our business
with strong contributions from rates, credit and equities.
Increased rates volatility in the first quarter of 2022 contributed
to record volumes in U.S. Treasuries, European government bonds and
swaps. Credit delivered a record revenue quarter driven by
broad-based product growth and strong corporate bond client
engagement across RFQ, Tradeweb AllTrade, and Portfolio Trading –
which saw a ~60% YoY increase in the number of firms using the
tool. In February, our board announced succession plans for the
company; I was honored to be appointed Chairman, and I am
tremendously excited that my longtime partner Billy Hult will
succeed me as CEO on January 1, 2023. Tradeweb has an outstanding
leadership team and we believe we are well positioned for the
future."
SELECT FINANCIAL
RESULTS
1Q22
1Q21
Change
Constant Currency Growth
(1)
(dollars in thousands except per share
amounts)(Unaudited)
GAAP Financial Measures
Total revenue
$
311,486
$
273,399
13.9
%
15.9
%
Rates
$
160,339
$
142,929
12.2
%
14.4
%
Credit
$
86,318
$
74,368
16.1
%
17.6
%
Equities
$
26,535
$
18,861
40.7
%
45.6
%
Money Markets
$
11,524
$
10,818
6.5
%
8.1
%
Market Data
$
21,366
$
19,972
7.0
%
7.5
%
Other
$
5,404
$
6,451
(16.2
)
%
(16.2
)
%
Net income
$
97,445
$
81,565
19.5
%
Net income attributable to Tradeweb Markets Inc. (2)
$
82,965
$
67,859
22.3
%
Diluted EPS
$
0.40
$
0.33
21.2
%
Non-GAAP Financial Measures
Adjusted EBITDA (1)
$
160,635
$
142,084
13.1
%
14.5
%
Adjusted EBITDA margin (1)
51.6
%
52.0
%
-40
bps
-64
bps
Adjusted EBIT (1)
$
147,954
$
130,721
13.2
%
14.7
%
Adjusted EBIT margin (1)
47.5
%
47.8
%
-31
bps
-50
bps
Adjusted Net Income (1)
$
115,055
$
101,578
13.3
%
14.8
%
Adjusted Diluted EPS (1)
$
0.48
$
0.43
11.6
%
14.0
%
(1)
Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted
Diluted EPS and constant currency growth are non-GAAP financial
measures. See "Non-GAAP Financial Measures" below and the attached
schedules for additional information and reconciliations of such
non-GAAP financial measures.
(2)
Represents net income less net income
attributable to non-controlling interests.
ADV (US $bn)
(Unaudited)
Asset Class
Product
1Q22
1Q21
YoY
Rates
Cash
$
387
$
379
2.3
%
Derivatives
361
287
25.6
%
Total
749
666
12.4
%
Credit
Cash
11
10
3.9
%
Derivatives
22
17
34.3
%
Total
33
27
22.7
%
Equities
Cash
13
9
41.5
%
Derivatives
9
7
21.4
%
Total
21
16
32.6
%
Money Markets
Cash
372
350
6.4
%
Total
372
350
6.4
%
Total
$
1,175
$
1,059
10.9
%
DISCUSSION OF RESULTS
Rates – Revenues of $160.3 million in the first quarter
of 2022 increased 12.2% compared to prior year period (14.4% on a
constant currency basis). Rates ADV was up 12.4% with record ADV in
U.S. and European government bonds, as well as swaps/swaptions ≥
1-year.
Credit – Revenues of $86.3 million in the first quarter
of 2022 increased 16.1% compared to prior year period (17.6% on a
constant currency basis). Credit ADV was up 22.7% with record ADV
in fully electronic U.S. High Grade credit, fully electronic U.S.
High Yield credit, and European credit. Tradeweb's share of fully
electronic TRACE volume for U.S. High Grade and U.S. High Yield for
the quarter increased by +180 bps and +320 bps, respectively,
compared to prior year period.
Equities – Revenues of $26.5 million in the first quarter
of 2022 increased 40.7% compared to prior year period (45.6% on a
constant currency basis). Equities ADV was up 32.6% with record ADV
in U.S. and European ETFs.
Money Markets – Revenues of $11.5 million in the first
quarter of 2022 increased 6.5% compared to prior year period (8.1%
on a constant currency basis). Money Markets ADV was up 6.4% led by
record ADV in Repurchase Agreements.
Market Data – Revenues of $21.4 million in the first
quarter of 2022 increased 7.0% compared to prior year period (7.5%
on a constant currency basis). The increase was derived from
increased third party market data fees, Refinitiv market data fees
and revenue from our APA reporting service.
Other – Revenues of $5.4 million in the first quarter of
2022 decreased 16.2% compared to prior year period (16.2% decrease
on a constant currency basis). The decrease was driven primarily by
lower fees from software development and implementation projects
performed on behalf of certain retail clients.
Operating Expenses of $199.9 million in the first quarter
of 2022 increased 14.2% compared to $175.1 million in the prior
year period due to: higher employee compensation and benefits
associated with higher headcount to support growth and higher
performance-related compensation; higher depreciation and
amortization expense; higher technology and communications expenses
primarily due to increased clearing, data and client service fees
driven by higher trading volumes; and higher general and
administrative expense, as foreign exchange gains decreased and
travel and entertainment expense increased following the easing of
restrictions relating to the pandemic.
Adjusted Expenses of $163.5 million increased 14.6%
(17.1% on a constant currency basis) compared to the prior year
period due to: higher employee compensation and benefits associated
with higher headcount to support growth and higher
performance-related compensation; higher technology and
communications expenses; higher depreciation and amortization
expenses; and higher general and administrative expenses. Please
see "Non-GAAP Financial Measures" below for additional
information.
CAPITAL MANAGEMENT
- $828.1 million in cash and cash equivalents and an undrawn $500
million credit facility at March 31, 2022
- Non-acquisition related capital expenditures and capitalization
of software development in first quarter 2022: $18.0 million
- Free cash flow for the trailing twelve months ended March 31,
2022 of $510.9 million, up 7.8% compared to the prior year period.
See “Non-GAAP Financial Measures” for additional information
- During the first quarter of 2022, as part of its Share
Repurchase Program, Tradeweb purchased 559,428 shares of Class A
common stock, at an average price of $84.59, for purchases totaling
$47.3 million. As of March 31, 2022, a total of $27.0 million
remained available for repurchase pursuant to the Share Repurchase
Program
- $95.8 million in shares were withheld in the first quarter of
2022 to satisfy tax obligations related to the exercise of stock
options and vesting of restricted stock units and performance-based
restricted stock units
- The Board of Directors of Tradeweb Markets Inc. declared a
quarterly cash dividend of $0.08 per share of Class A common stock
and Class B common stock. The dividend will be payable on June 15,
2022 to stockholders of record as of June 1, 2022
OTHER MATTERS
Full-Year 2022 Guidance*
Full-Year 2022 guidance is unchanged from prior quarter.
- Adjusted Expenses: $620 - $655 million
- Acquisition and Refinitiv Transaction related depreciation and
amortization expense: $127 million
- Assumed non-GAAP tax rate: ~22.0%
- Capital expenditures and capitalization of software
development: $62 - $68 million
*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.
CONFERENCE CALL
Tradeweb Markets will hold a conference call to discuss first
quarter 2022 results starting at 9:30 AM EDT today, April 28, 2022.
A live, audio webcast of the conference call along with related
materials will be available at http://investors.tradeweb.com. Alternatively,
interested parties can access the call by dialing 866-221-1629
(U.S.) or +1 470-495-9175 (international) and entering conference
ID 9566847. After the conference call, an archived recording will
be available at http://investors.tradeweb.com.
ABOUT TRADEWEB MARKETS
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets. Founded in 1996, Tradeweb provides access to markets, data
and analytics, electronic trading, straight-through-processing and
reporting for more than 40 products to clients in the
institutional, wholesale and retail markets. Advanced technologies
developed by Tradeweb enhance price discovery, order execution and
trade workflows while allowing for greater scale and helping to
reduce risks in client trading operations. Tradeweb serves
approximately 2,500 clients in more than 65 countries. On average,
Tradeweb facilitated more than $1 trillion in notional value traded
per day over the past four fiscal quarters. For more information,
please go to www.tradeweb.com.
TRADEWEB MARKETS INC. INCOME
STATEMENT Dollars in Thousands, Except Per Share Data
Three Months Ended
March 31,
2022
2021
Revenues
(unaudited)
(unaudited)
Transaction fees and commissions
$
251,805
$
217,816
Subscription fees
41,455
37,868
Refinitiv market data fees
15,558
15,117
Other
2,668
2,598
Total revenue
311,486
273,399
Expenses
Employee compensation and benefits
117,991
103,622
Depreciation and amortization
44,450
40,966
Technology and communications
15,776
13,544
General and administrative
10,313
3,459
Professional fees
7,857
9,728
Occupancy
3,497
3,753
Total expenses
199,884
175,072
Operating income
111,602
98,327
Net interest income (expense)
(447
)
(493
)
Income before taxes
111,155
97,834
Provision for income taxes
(13,710
)
(16,269
)
Net income
97,445
81,565
Less: Net income attributable to
non-controlling interests
14,480
13,706
Net income attributable to Tradeweb
Markets Inc.
$
82,965
$
67,859
Earnings per share attributable to
Tradeweb Markets Inc. Class A and B common stockholders:
Basic
$
0.41
$
0.34
Diluted
$
0.40
$
0.33
Weighted average shares outstanding:
Basic
204,061,347
199,064,607
Diluted
207,497,102
205,028,717
TRADEWEB MARKETS INC. RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (UNAUDITED) Dollars in Thousands,
Except per Share Data
Three Months Ended
Reconciliation of Net Income to
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted
EBIT Margin
March 31,
2022
2021
(dollars in thousands)
Net income
$
97,445
$
81,565
Acquisition transaction costs (1)
(18
)
1,761
Net interest (income) expense
447
493
Depreciation and amortization
44,450
40,966
Stock-based compensation expense (2)
3,869
6,383
Provision for income taxes
13,710
16,269
Foreign exchange (gains) / losses (3)
732
(5,353
)
Tax receivable agreement liability
adjustment (4)
—
—
Adjusted EBITDA
$
160,635
$
142,084
Less: Depreciation and amortization
(44,450
)
(40,966
)
Add: D&A related to acquisitions and
the Refinitiv Transaction (5)
31,769
29,603
Adjusted EBIT
$
147,954
$
130,721
Adjusted EBITDA margin (6)
51.6
%
52.0
%
Adjusted EBIT margin (6)
47.5
%
47.8
%
(1)
Represents transaction and other costs
related to the NFI Acquisition, which closed in June 2021.
Acquisition-related costs primarily include legal, consulting and
advisory fees and severance costs incurred that relate to the
acquisition transaction.
(2)
Represents non-cash stock-based
compensation expense associated with the Special Option Award and
post-IPO options awarded in 2019 and payroll taxes associated with
exercises of such options during the applicable period totaling
$2.1 million and $6.4 million during the three months ended March
31, 2022 and 2021, respectively, and non-cash accelerated
stock-based compensation expense associated with our former CFO and
our retiring CEO and related payroll taxes totaling $1.7 million
during the three months ended March 31, 2022.
(3)
Represents unrealized gain or loss
recognized on foreign currency forward contracts and foreign
exchange gain or loss from the revaluation of cash denominated in a
different currency than the entity’s functional currency.
(4)
Represents income recognized during the
applicable period due to changes in the tax receivable agreement
liability recorded in the statement of financial condition as a
result of changes in the mix of earnings, tax legislation and tax
rates in various jurisdictions which impacted our tax savings.
(5)
Represents intangible asset and acquired
software amortization resulting from the NFI Acquisition and
intangible asset amortization and increased tangible asset and
capitalized software depreciation and amortization resulting from
the application of pushdown accounting to the Refinitiv Transaction
(where all assets were marked to fair value as of the closing date
of the Refinitiv Transaction).
(6)
Adjusted EBITDA margin and Adjusted EBIT
margin are defined as Adjusted EBITDA and Adjusted EBIT,
respectively, divided by revenue for the applicable period.
Three Months Ended
Reconciliation of Net Income to
Adjusted Net Income and Adjusted Diluted EPS
March 31,
2022
2021
(in thousands, except per
share amounts)
Earnings per diluted share
$
0.40
$
0.33
Net income attributable to Tradeweb
Markets Inc.
$
82,965
$
67,859
Net income attributable to non-controlling
interests (1)
14,480
13,706
Net income
97,445
81,565
Provision for income taxes
13,710
16,269
Acquisition transaction costs (2)
(18
)
1,761
D&A related to acquisitions and the
Refinitiv Transaction (3)
31,769
29,603
Stock-based compensation expense (4)
3,869
6,383
Foreign exchange (gains) / losses (5)
732
(5,353
)
Tax receivable agreement liability
adjustment (6)
—
—
Adjusted Net Income before income
taxes
147,507
130,228
Adjusted income taxes (7)
(32,452
)
(28,650
)
Adjusted Net Income
$
115,055
$
101,578
Adjusted Diluted EPS (8)
$
0.48
$
0.43
(1)
Represents the reallocation of net income
attributable to non-controlling interests from the assumed exchange
of all outstanding LLC Interests held by non-controlling interests
for shares of Class A or Class B common stock.
(2)
Represents transaction and other costs
related to the NFI Acquisition, which closed in June 2021.
Acquisition-related costs primarily include legal, consulting and
advisory fees and severance costs incurred that relate to the
acquisition transaction.
(3)
Represents intangible asset and acquired
software amortization resulting from the NFI Acquisition and
intangible asset amortization and increased tangible asset and
capitalized software depreciation and amortization resulting from
the application of pushdown accounting to the Refinitiv Transaction
(where all assets were marked to fair value as of the closing date
of the Refinitiv Transaction).
(4)
Represents non-cash stock-based
compensation expense associated with the Special Option Award and
post-IPO options awarded in 2019 and payroll taxes associated with
exercises of such options during the applicable period totaling
$2.1 million and $6.4 million during the three months ended March
31, 2022 and 2021, respectively, and non-cash accelerated
stock-based compensation expense associated with our former CFO and
our retiring CEO and related payroll taxes totaling $1.7 million
during the three months ended March 31, 2022.
(5)
Represents unrealized gain or loss
recognized on foreign currency forward contracts and foreign
exchange gain or loss from the revaluation of cash denominated in a
different currency than the entity’s functional currency.
(6)
Represents income recognized during the
applicable period due to changes in the tax receivable agreement
liability recorded in the statement of financial condition as a
result of changes in the mix of earnings, tax legislation and tax
rates in various jurisdictions which impacted our tax savings.
(7)
Represents corporate income taxes at an
assumed effective tax rate of 22% applied to Adjusted Net Income
before income taxes for each of the three months ended March 31,
2022 and 2021.
(8)
For a summary of the calculation of
Adjusted Diluted EPS, see “Reconciliation of Diluted Weighted
Average Shares Outstanding to Adjusted Diluted Weighted Average
Shares Outstanding” below.
The following table summarizes the calculation of Adjusted
Diluted EPS for the periods presented:
Three Months Ended
Reconciliation of Diluted Weighted
Average Shares Outstanding to Adjusted Diluted Weighted Average
Shares Outstanding and Adjusted Diluted EPS
March 31,
2022
2021
Diluted weighted average shares of Class A
and Class B common stock outstanding
207,497,102
205,028,717
Weighted average of other participating
securities (1)
53,756
—
Assumed exchange of LLC Interests for
shares of Class A or Class B common stock (2)
30,296,879
31,214,407
Adjusted diluted weighted average shares
outstanding
237,847,737
236,243,124
Adjusted Net Income (in thousands)
$
115,055
$
101,578
Adjusted Diluted EPS
$
0.48
$
0.43
(1)
Weighted average unvested restricted stock
units and unsettled vested performance-based restricted stock units
issued to certain retired executives that are entitled to
non-forfeitable dividend equivalent rights and are considered
participating securities prior to being issued and outstanding
shares of common stock in accordance with the two-class method used
for purposes of calculating earnings per share.
(2)
Assumes the full exchange of the weighted
average of all outstanding LLC Interests held by non-controlling
interests for shares of Class A or Class B common stock, resulting
in the elimination of the non-controlling interests and recognition
of the net income attributable to non-controlling interests.
Three Months Ended
Reconciliation of Operating Expenses to
Adjusted Expenses
March 31,
2022
2021
(in thousands)
Operating expenses
$
199,884
$
175,072
Acquisition transaction costs (1)
18
(1,761
)
D&A related to acquisitions and the
Refinitiv Transaction (2)
(31,769
)
(29,603
)
Stock-based compensation expense (3)
(3,869
)
(6,383
)
Foreign exchange gains / (losses) (4)
(732
)
5,353
Adjusted Expenses
$
163,532
$
142,678
(1)
Represents transaction and other costs
related to the NFI Acquisition, which closed in June 2021.
Acquisition-related costs primarily include legal, consulting and
advisory fees and severance costs incurred that relate to the
acquisition transaction.
(2)
Represents intangible asset and acquired
software amortization resulting from the NFI Acquisition and
intangible asset amortization and increased tangible asset and
capitalized software depreciation and amortization resulting from
the application of pushdown accounting to the Refinitiv Transaction
(where all assets were marked to fair value as of the closing date
of the Refinitiv Transaction).
(3)
Represents non-cash stock-based
compensation expense associated with the Special Option Award and
post-IPO options awarded in 2019 and payroll taxes associated with
exercises of such options during the applicable period totaling
$2.1 million and $6.4 million during the three months ended March
31, 2022 and 2021, respectively, and non-cash accelerated
stock-based compensation expense associated with our former CFO and
our retiring CEO and related payroll taxes totaling $1.7 million
during the three months ended March 31, 2022.
(4)
Represents unrealized gain or loss
recognized on foreign currency forward contracts and foreign
exchange gain or loss from the revaluation of cash denominated in a
different currency than the entity’s functional currency.
Reconciliation of Cash Flows from Operating
Activities to Free Cash Flow
Trailing Twelve Months Ended
March 31, 2022
(in thousands)
Cash flow from operating activities
$
567,692
Less: Capitalization of software
development costs
(35,183
)
Less: Purchases of furniture, equipment
and leasehold improvements
(21,580
)
Free Cash Flow
$
510,929
TRADEWEB MARKETS INC. BASIC AND DILUTED EPS
CALCULATIONS (UNAUDITED) Dollars in Thousands, Except per
Share Data
The following table summarizes the basic and diluted earnings
per share calculations for Tradeweb Markets Inc.:
Three Months Ended
EPS: Net income attributable to
Tradeweb Markets Inc.
March 31,
2022
2021
(in thousands, except share
and per share amounts)
Numerator:
Net income attributable to Tradeweb
Markets Inc.
$
82,965
$
67,859
Less: Distributed and undistributed
earnings allocated to unvested RSUs and unsettled vested PRSUs
(1)
(22
)
—
Net income attributable to outstanding
shares of Class A and Class B common stock - Basic and Diluted
$
82,943
$
67,859
Denominator:
Weighted average shares of Class A and
Class B common stock outstanding - Basic
204,061,347
199,064,607
Dilutive effect of PRSUs
770,765
1,832,308
Dilutive effect of options
2,322,027
3,851,594
Dilutive effect of RSUs
342,963
280,208
Weighted average shares of Class A and
Class B common stock outstanding - Diluted
207,497,102
205,028,717
Earnings per share - Basic
$
0.41
$
0.34
Earnings per share - Diluted
$
0.40
$
0.33
(1)
During the three months ended March 31,
2022 and 2021, there was a total of 53,756 and none, respectively,
weighted average unvested RSUs and unsettled vested PRSUs that were
considered a participating security for purposes of calculating
earnings per share in accordance with the two-class method.
TRADEWEB MARKETS INC. REVENUES BY ASSET
CLASS (UNAUDITED)
Three Months Ended
March 31,
2022
2021
$ Change
% Change
Revenues
Variable
Fixed
Variable
Fixed
Variable
Fixed
Variable
Fixed
(dollars in thousands)
Rates
$
103,389
$
56,950
$
89,651
$
53,278
$
13,738
$
3,672
15.3
%
6.9
%
Credit
79,648
6,670
67,998
6,370
11,650
300
17.1
%
4.7
%
Equities
24,151
2,384
15,980
2,881
8,171
(497
)
51.1
%
(17.3
) %
Money Markets
7,274
4,250
6,713
4,105
561
145
8.4
%
3.5
%
Market Data
—
21,366
—
19,972
—
1,394
—
7.0
%
Other
—
5,404
—
6,451
—
(1,047
)
—
(16.2
) %
Total revenue
$
214,462
$
97,024
$
180,342
$
93,057
$
34,120
$
3,967
18.9
%
4.3
%
TRADEWEB MARKETS INC. AVERAGE VARIABLE
FEES PER MILLION DOLLARS OF VOLUME (UNAUDITED)
Three Months Ended
March 31,
YoY
2022
2021
% Change
Rates
$
2.22
$
2.19
1.3
%
Cash Rates
$
2.05
$
1.91
7.6
%
Rates Derivatives
$
2.40
$
2.56
(6.4
) %
Swaps / Swaptions Tenor (greater than 1
year)
$
3.96
$
3.90
1.7
%
Other Rates Derivatives (1)
$
0.21
$
0.26
(17.4
) %
Credit
$
38.51
$
40.81
(5.6
) %
Cash Credit (2)
$
147.49
$
135.45
8.9
%
Credit Derivatives and U.S. Cash “EP”
$
6.91
$
6.33
9.1
%
Equities
$
18.10
$
16.05
12.8
%
Cash Equities
$
26.18
$
23.63
10.8
%
Equity Derivatives
$
6.18
$
6.46
(4.3
) %
Money Markets (Cash)
$
0.31
$
0.31
0.7
%
Total Fees per Million
$
2.93
$
2.77
5.8
%
Total Fees per Million excluding Other
Rates Derivatives (3)
$
3.33
$
3.05
9.2
%
(1)
Includes Swaps/Swaptions of tenor less
than 1 year and Rates Futures.
(2)
The “Cash Credit” category represents the
“Credit” asset class excluding (1) Credit Derivatives and (2) U.S.
High Grade and High Yield electronically processed (“EP”)
activity.
(3)
Included to contextualize the impact of
short-tenored Swaps/Swaptions and Rates Futures on totals for all
periods presented.
TRADEWEB MARKETS INC. AVERAGE DAILY
VOLUME (UNAUDITED)
2022 Q1
2021 Q1
YoY
Asset Class
Product
ADV (USD mm)
Volume (USD mm)
ADV (USD mm)
Volume (USD mm)
ADV
Rates
Cash
$
387,494
$
24,059,807
$
378,750
$
23,169,513
2.31
%
U.S. Government Bonds
149,564
9,272,977
115,375
7,037,857
29.63
%
European Government Bonds
38,940
2,453,215
31,613
1,991,630
23.18
%
Mortgages
193,844
12,018,322
226,368
13,808,465
(14.37
) %
Other Government Bonds
5,146
315,293
5,393
331,561
(4.59
) %
Derivatives
361,041
22,531,757
287,477
17,771,122
25.59
%
Swaps/Swaptions ≥ 1Y
210,550
13,143,966
182,088
11,262,405
15.63
%
Swaps/Swaptions < 1Y
148,430
9,260,040
104,542
6,457,053
41.98
%
Futures
2,060
127,751
847
51,663
143.31
%
Total
748,535
46,591,564
666,227
40,940,635
12.35
%
Credit
Cash
10,793
666,330
10,383
632,811
3.96
%
U.S. High Grade - Fully
Electronic
3,090
191,562
2,864
174,692
7.89
%
U.S. High Grade - Electronically
Processed
2,838
175,975
2,718
165,769
4.44
%
U.S. High Yield - Fully
Electronic
776
48,086
458
27,928
69.40
%
U.S. High Yield - Electronically
Processed
410
25,393
362
22,058
13.26
%
European Credit
2,085
131,336
2,066
130,134
0.92
%
Municipal Bonds
249
15,438
204
12,465
21.85
%
Chinese Bonds
1,252
72,641
1,594
92,457
(21.43
) %
Other Credit Bonds
94
5,898
118
7,307
(20.10
) %
Derivatives
22,420
1,401,929
16,690
1,033,323
34.34
%
Swaps
22,420
1,401,929
16,690
1,033,323
34.34
%
Total
33,214
2,068,259
27,072
1,666,133
22.69
%
Equities
Cash
12,766
795,177
9,022
556,282
41.50
%
U.S. ETFs
9,050
561,084
6,046
368,822
49.67
%
European ETFs
3,716
234,094
2,976
187,459
24.88
%
Derivatives
8,683
539,189
7,154
439,390
21.37
%
Convertibles/Swaps/Options
3,370
209,391
3,054
189,032
10.35
%
Futures
5,314
329,798
4,101
250,358
29.57
%
Total
21,449
1,334,366
16,176
995,672
32.59
%
Money Markets
Cash
371,753
23,118,472
349,517
21,474,112
6.36
%
Repurchase Agreements (Repo)
353,995
22,017,086
335,520
20,618,692
5.51
%
Other Money Markets
17,758
1,101,386
13,996
855,420
26.88
%
Total
371,753
23,118,472
349,517
21,474,112
6.36
%
ADV (USD mm)
Volume (USD mm)
ADV (USD mm)
Volume (USD mm)
YoY
Total
$
1,174,950
$
73,112,661
$
1,058,992
$
65,076,553
10.95
%
To access historical traded volumes, go to
https://www.tradeweb.com/newsroom/monthly-activity-reports/.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the
meaning of the federal securities laws. Statements related to,
among other things, our guidance, including full-year 2022
guidance, and future performance, the industry and markets in which
we operate, our expectations, beliefs, plans, strategies,
objectives, prospects and assumptions and future events are
forward-looking statements.
We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. These and other important
factors, including those discussed under the heading “Risk Factors”
in documents of Tradeweb Markets Inc. on file with or furnished to
the SEC, may cause our actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. Given these risks and uncertainties,
you are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements
contained in this release are not guarantees of future performance
and our actual results of operations, financial condition or
liquidity, and the development of the industry and markets in which
we operate, may differ materially from the forward-looking
statements contained in this release. In addition, even if our
results of operations, financial condition, or liquidity, and
events in the industry and markets in which we operate, are
consistent with the forward-looking statements contained in this
release, they may not be predictive of results or developments in
future periods. Any forward-looking statement that we make in this
release speaks only as of the date of such statement. Except as
required by law, we do not undertake any obligation to update or
revise, or to publicly announce any update or revision to, any of
the forward-looking statements, whether as a result of new
information, future events or otherwise, after the date of this
release.
BASIS OF PRESENTATION
Tradeweb Markets Inc. (unless the context otherwise requires,
together with its subsidiaries, referred to as “we,” “our,”
“Tradeweb,” “Tradeweb Markets” or the “Company”) closed its IPO on
April 8, 2019. As a result of certain reorganization transactions
(the “Reorganization Transactions”) completed in connection with
the IPO, on April 4, 2019, Tradeweb Markets Inc. became a holding
company whose only material assets consist of its equity interest
in Tradeweb Markets LLC (“TWM LLC”) and related deferred tax
assets. As the sole manager of TWM LLC, Tradeweb Markets Inc.
operates and controls all of the business and affairs of TWM LLC
and, through TWM LLC and its subsidiaries, conducts its business.
As a result of this control, and because Tradeweb Markets Inc. has
a substantial financial interest in TWM LLC, Tradeweb Markets Inc.
consolidates the financial results of TWM LLC and its
subsidiaries.
Numerical figures included in this release have been subject to
rounding adjustments and as a result totals may not be the
arithmetic aggregation of the amounts that precede them and figures
expressed as percentages may not total 100%.
Please refer to the Company's previously filed Annual Report on
Form 10-K for capitalized terms not otherwise defined herein.
TRADEWEB SOCIAL MEDIA
Investors and others should note that Tradeweb Markets announces
material financial and operational information using its investor
relations website, press releases, SEC filings and public
conference calls and webcasts. Information about Tradeweb Markets,
its business and its results of operations may also be announced by
posts on the Company’s accounts on the following social media
channels: Instagram, LinkedIn and Twitter. The information that we
post through these social media channels may be deemed material. As
a result, we encourage investors, the media, and others interested
in Tradeweb Markets to monitor these social media channels in
addition to following our press releases, SEC filings and public
conference calls and webcasts. These social media channels may be
updated from time to time on our investor relations website.
NON-GAAP FINANCIAL MEASURES
This release contains “non-GAAP financial measures,” including
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted
EBIT margin, Adjusted Net Income, Adjusted Diluted EPS, Adjusted
Expenses and Free Cash Flow, which are supplemental financial
measures that are not calculated or presented in accordance with
GAAP. We make use of non-GAAP financial measures in evaluating our
past results and future prospects. We present these non-GAAP
financial measures because we believe they assist investors and
analysts in comparing our operating performance across reporting
periods on a consistent basis by excluding items that we do not
believe are indicative of our core operating performance.
Management and our board of directors use Adjusted EBITDA,
Adjusted EBITDA margin, Adjusted EBIT and Adjusted EBIT margin to
assess our financial performance and believe they are helpful in
highlighting trends in our core operating performance, while other
measures can differ significantly depending on long-term strategic
decisions regarding capital structure, the tax jurisdictions in
which we operate and capital investments. Further, our executive
incentive compensation is based in part on components of Adjusted
EBITDA.
We use Adjusted Net Income and Adjusted Diluted EPS as
supplemental metrics to evaluate our business performance in a way
that also considers our ability to generate profit without the
impact of certain items. Each of the normal recurring adjustments
and other adjustments included in Adjusted Net Income and Adjusted
Diluted EPS help to provide management with a measure of our
operating performance over time by removing items that are not
related to day-to-day operations or are non-cash expenses.
We use Adjusted Expenses as a supplemental metric to evaluate
our underlying operating performance over time by removing items
that are not related to day-to-day operations or are non-cash
expenses.
We use Free Cash Flow to assess our liquidity in a way that
considers the amount of cash generated from our core operations
after non-acquisition related expenditures for capitalized software
development costs and furniture, equipment and leasehold
improvements.
See the attached schedules for reconciliations of the non-GAAP
financial measures contained in this release to their most
comparable GAAP financial measure. Non-GAAP financial measures have
limitations as analytical tools, and you should not consider these
non-GAAP financial measures in isolation or as alternatives to net
income attributable to Tradeweb Markets Inc., net income, earnings
per share, operating income, operating expenses or cash flow from
operating activities or any other financial measure derived in
accordance with GAAP. You are encouraged to evaluate each
adjustment included in the reconciliations. In addition, in
evaluating Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT,
Adjusted EBIT margin, Adjusted Net Income, Adjusted Diluted EPS,
Adjusted Expenses and Free Cash Flow, you should be aware that in
the future, we may incur expenses similar to the adjustments in the
presentation of these non-GAAP financial measures.
We present certain growth information on a “constant currency”
basis. Since our consolidated financial statements are presented in
U.S. dollars, we must translate non-U.S. dollar revenues and
expenses into U.S. dollars. Constant currency growth, which is a
non-GAAP financial measure, is defined as growth excluding the
effects of foreign currency fluctuations. Constant currency
information is calculated by translating the current period and
prior period’s results using the annual average exchange rates for
the prior period. We use constant currency growth as a supplemental
metric to evaluate our underlying performance between periods by
removing the impact of foreign currency fluctuations. We present
certain constant currency growth information because we believe it
provides investors and analysts a useful comparison of our results
and trends between periods. This information should be considered
in addition to, not as a substitute for, results reported in
accordance with GAAP.
Our presentation of non-GAAP financial measures should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items. In addition, the
non-GAAP financial measures contained in this release may not be
comparable to similarly titled measures used by other companies in
our industry or across different industries.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220428005049/en/
Media Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor Ashley Serrao, Tradeweb +1 646 430 6027
Ashley.Serrao@Tradeweb.com
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