Tradeweb Reports Strong Q1 2021 Results with Growth in Multiple Markets

Tradeweb Markets Inc. (Tradeweb), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, published its financial results for the quarter ended March 31, 2024 (Q1 2024), reporting a total revenue of $408.74 million for the period, an increase of 24.1% compared to $329.25 million in the year-ago quarter.

Compared Q1 2023, revenue of rates segment rose by 25.6% from $170.51 million to $214.09 million. Credit revenue rose by 30.1% from $89.02 million to $115.84 million. Equities revenue slightly rose by 3.2% from $26.20 million to $27.05 million. Money markets revenue rose by 13.4% from $14.81 million to $16.79 million. Market data revenue rose by 29.4% from $22.43 million to $29.02 million. While other revenue dropped from $6.28 million to $5.94 million, down 5.4% on a year-on-year basis (YoY).

Net income for the quarter came in at $143.38 million, jumping 40.3% compared to $102.19 million in the same period of last year. Adjusted net income was $167.93 million, up 30.1% compared to $129.04 million in Q1 2023.

Net income attributable to Tradeweb amounted $126.14 million, 43.6% higher than $87.86 million in Q1 of last year. Diluted earnings per share (EPS) stood at $0.59 for the quarter, up 40.5% compared to $0.42 in Q1 2023.

Operating expenses reported of $241.06 million for the quarter, increasing 16.6% compared to $206.68 million in the year-ago quarter.

Adjusted EBITDA was $219.53 million with adjusted EBITDA of 53.7% for Q1 2024, compared to $172.20 million and 52.3% respectively for prior year period.

In Q1 2024, the company recorded a average daily volume of $1.90 trillion, increasing 39.1% compared to $1.37 tillion in the prior year quarter.

Billy Hult, CEO of Tradeweb, commented: "We had a very strong start to 2024, continuing last year's momentum thanks to broad-based organic growth and a number of important milestones. Our quarterly ADV climbed 39% from the prior year period to a record $1.9 trillion, with several more ADV records set across rates, credit, equities and money markets. Tradeweb captured a record 17.6% share of U.S. High Grade TRACE (+420 bps from the prior year period), reflecting steady growth in an area of strategic focus and investment for us.

"In January, we finalized our acquisition of r8fin, a technology provider that specializes in algorithmic-based execution for U.S. Treasuries and interest rate futures, and we feel great about how this will strengthen our offering with macro hedge funds. In April, we agreed to acquire ICD, a leading institutional investment technology provider for corporate treasury organizations, which will add Corporates as a new client channel with significant cross-sell opportunities.

"We also recently celebrated the five-year anniversary of Tradeweb's IPO, and we remain laserfocused on keeping continued innovation and collaboration at the heart of Tradeweb's success. Now more than ever, we believe the future of trading is multi-asset class -- and innovative."