Tradeweb Markets Delivers Record Q3 Revenues with $328M

Tradeweb Markets Inc. (Tradeweb), a leading, global operator of electronic marketplaces for rates, credit, equities, and money markets, published financial results for the quarter ended September 30, 2023 (Q3 2023), reporting a total revenue of $328.4 million for the quarter, 14.4% higher than $287.1 million in Q3 2022.

Compared to Q3 2022, revenue of rates segment rose by 16.6% from $148.2 million to $172.8 million. Credit revenue rose by 15.3% from $78.1 million to $90.1 million. Revenue from money markets rose by 21.5% from $13.0 million to $15.8 million. Revenue from market data rose by 8.2% from $21.2 million to $23.0 million. However, equities revenue dropped by 1.8% from $21.3 million to $20.9 million on a yearly basis.

Net income totaled $111.6 million during the three months, rising by 36.9% from $81.6 million in a year ago quarter. Net income attributable to Tradeweb amounted $98.6 million, an increase of 42.7% compared to $69.1 million in Q3 of last year.

Operating expenses reported of $203.6 million for the quarter, increasing 10.5% compared to $184.3 million in Q3 2022.

Adjusted EBITDA was $170.4 million with adjusted EBITDA of 51.9% for Q3 2023, compared to $146.3 million and 51.0% respectively for prior year period.

Diluted earnings per share (EPS) increased by 22.2% from $0.45 to $0.55 on a year-on-year basis.

In addition, average daily volume (ADV) totaled $1.4 trillion for the period, increasing 29.6% compared to $1.1 trillion in Q3 of last year.

Billy Hult, CEO of Tradeweb, commented: "Tradeweb delivered record third-quarter revenues, as heightened focus on fixed income and a sustained period of high interest rates dominated institutional, wholesale and retail client sectors. Reflecting the breadth of Tradeweb's business, our nearly 30% year-over-year increase in quarterly ADV was fueled by strong volumes in rates, credit, equities and money markets.

"We continued to grow market share in credit, where our record share of fully-electronic U.S. High Grade TRACE increased by 263 bps compared to the prior year period – and has more than quadrupled over the past five years. We made continued progress against our strategic growth priorities with the closing of the Yieldbroker acquisition during the third quarter.

"Today, we also announced a new licensing agreement with LSEG Data & Analytics (Refinitiv), allowing LSEG to distribute our market data while providing Tradeweb with increased revenue and flexibility as we grow our market data offering."