10/28/2021 | Press release | Distributed by Public on 10/28/2021 05:15
Tradeweb Markets Inc. | ||||||||||
Select Financial Results (QTD) | ||||||||||
September 30, 2021 | ||||||||||
(dollars in thousands, except per share amounts) | Constant | |||||||||
Currency | ||||||||||
3Q21 | 3Q20 | % Change | Growth | |||||||
Total revenue | $ | 265,325 | $ | 212,870 | 24.6 | % | 23.9 | % | ||
Rates | $ | 139,418 | $ | 115,766 | 20.4 | % | 19.7 | % | ||
Credit | $ | 72,243 | $ | 50,216 | 43.9 | % | 43.2 | % | ||
Equities | $ | 16,457 | $ | 11,857 | 38.8 | % | 37.7 | % | ||
Money Markets | $ | 11,221 | $ | 10,491 | 7.0 | % | 6.4 | % | ||
Market Data | $ | 20,515 | $ | 18,598 | 10.3 | % | 9.2 | % | ||
Other | $ | 5,471 | $ | 5,942 | (7.9) | % | (7.9) | % | ||
Net income | $ | 65,305 | $ | 47,048 | 38.8 | % | ||||
Net income attributable to Tradeweb Markets Inc. | $ | 54,763 | $ | 36,812 | 48.8 | % | ||||
Diluted EPS | $ | 0.26 | $ | 0.19 | 36.8 | % | ||||
Non-GAAP Financial Measures | ||||||||||
Adjusted EBITDA | $ | 132,946 | $ | 100,913 | 31.7 | % | 30.0 | % | ||
Adjusted EBITDA margin | 50.1 | % | 47.4 | % | +270 | bps | +234 | bps | ||
Adjusted EBIT | $ | 121,079 | $ | 90,015 | 34.5 | % | 32.6 | % | ||
Adjusted EBIT margin | 45.6 | % | 42.3 | % | +335 | bps | +298 | bps | ||
Adjusted Net Income | $ | 94,160 | $ | 69,939 | 34.6 | % | 32.7 | % | ||
Adjusted Diluted EPS | $ | 0.39 | $ | 0.30 | 30.0 | % | 30.0 | % | ||
Tradeweb Markets Inc. | ||||||||
Income Statement | ||||||||
September 30, 2021 | ||||||||
(dollars in thousands, except per share amounts) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenues | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||
Transaction fees and commissions | $ | 206,316 | 160,175 | 629,513 | 503,753 | |||
Subscription fees | 41,390 | 36,217 | 117,141 | 105,706 | ||||
Refinitiv market data fees | 15,002 | 14,273 | 45,045 | 43,466 | ||||
Other | 2,617 | 2,205 | 7,865 | 6,658 | ||||
Total revenue | 265,325 | 212,870 | 799,564 | 659,583 | ||||
Expenses | ||||||||
Employee compensation and benefits | 98,036 | 83,967 | 300,107 | 263,353 | ||||
Depreciation and amortization | 44,823 | 38,857 | 127,656 | 113,952 | ||||
Technology and communications | 14,747 | 12,037 | 42,248 | 34,397 | ||||
General and administrative | 9,561 | 8,657 | 21,809 | 24,520 | ||||
Professional fees | 8,897 | 7,388 | 28,993 | 20,908 | ||||
Occupancy | 3,733 | 3,443 | 11,104 | 10,678 | ||||
Total expenses | 179,797 | 154,349 | 531,917 | 467,808 | ||||
Operating income | 85,528 | 58,521 | 267,647 | 191,775 | ||||
Tax receivable agreement liability adjustment | - | - | - | - | ||||
Net interest income (expense) | (361) | (349) | (1,179) | 64 | ||||
Income before taxes | 85,167 | 58,172 | 266,468 | 191,839 | ||||
Provision for income taxes | (19,862) | (11,124) | (53,365) | (39,898) | ||||
Net income | 65,305 | 47,048 | 213,103 | 151,941 | ||||
Less: Net income attributable to non-controlling interests | 10,542 | 10,236 | 35,165 | 40,705 | ||||
Net income attributable to Tradeweb Markets Inc. | $ | 54,763 | $ | 36,812 | $ | 177,938 | $ | 111,236 |
Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders: | ||||||||
Basic | $ | 0.27 | $ | 0.20 | $ | 0.89 | $ | 0.63 |
Diluted | $ | 0.26 | $ | 0.19 | $ | 0.86 | $ | 0.60 |
Weighted average shares outstanding | ||||||||
Basic | 202,238,122 | 187,774,170 | 201,029,196 | 177,257,994 | ||||
Diluted | 208,197,439 | 194,955,695 | 206,908,330 | 185,026,108 |
Tradeweb Markets Inc. | ||
Non GAAP Income Statement | ||
September 30, 2021 | ||
(dollars in thousands, except per share amounts) | ||
Three Months Ended September 30, | ||
2021 | 2020 | |
Revenues: | ||
Fixed | $ 58,530 | $ 51,627 |
Variable | 80,888 | 64,139 |
Total Rates | 139,418 | 115,766 |
Fixed | 6,501 | 5,938 |
Variable | 65,742 | 44,278 |
Total Credit | 72,243 | 50,216 |
Fixed | 2,222 | 2,528 |
Variable | 14,235 | 9,329 |
Total Equities | 16,457 | 11,857 |
Fixed | 4,023 | 4,101 |
Variable | 7,198 | 6,390 |
Total Money Markets | 11,221 | 10,491 |
Refinitiv | 15,002 | 14,273 |
Other | 5,513 | 4,325 |
Total Market Data | 20,515 | 18,598 |
Fixed | 5,471 | 5,942 |
Variable | - | - |
Total Other Fees | 5,471 | 5,942 |
Total Fixed Revenues | 97,262 | 88,734 |
Total Variable Revenues | 168,063 | 124,136 |
Total revenues | 265,325 | 212,870 |
Expenses: | ||
Employee compensation and benefits | 95,681 | 82,151 |
Depreciation and amortization | 11,867 | 10,898 |
Technology and communications | 14,747 | 12,037 |
General and administrative | 9,420 | 6,938 |
Professional fees | 8,798 | 7,388 |
Occupancy | 3,733 | 3,443 |
Total Adjusted Expenses | 144,246 | 122,855 |
Adjusted Operating Income | 121,079 | 90,015 |
Net interest income (expense) | (361) | (349) |
Adjusted Income before taxes | 120,718 | 89,666 |
Adjusted Provision for income taxes | (26,558) | (19,727) |
Adjusted Net Income | $ 94,160 | $ 69,939 |
Adjusted diluted earnings per share | $ 0.39 | $ 0.30 |
Adjusted diluted weighted average shares outstanding | 238,729,372 | 234,468,941 |
Adjusted EBITDA margin | 50.1% | 47.4% |
Adjusted EBIT margin | 45.6% | 42.3% |
Adjusted EBT margin | 45.5% | 42.1% |
Adjusted Net Income margin | 35.5% | 32.9% |
Tradeweb Markets Inc. | ||||||||||
Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted EBIT Margin | ||||||||||
September 30, 2021 | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
2021 | 2020 | 2021 | 2020 | |||||||
(dollars in thousands) | ||||||||||
Net income | $ | 65,305 | $ | 47,048 | $ | 213,103 | $ | 151,941 | ||
Acquisition transaction costs | 459 | - | 5,186 | - | ||||||
Net interest (income) expense | 361 | 349 | 1,179 | (64) | ||||||
Depreciation and amortization | 44,823 | 38,857 | 127,656 | 113,952 | ||||||
Stock-based compensation expense | 1,995 | 1,816 | 11,181 | 10,308 | ||||||
Provision for income taxes | 19,862 | 11,124 | 53,365 | 39,898 | ||||||
Foreign exchange (gains)/losses | 141 | 1,719 | (4,742) | 5,837 | ||||||
Tax receivable agreement liability adjustment | - | - | - | - | ||||||
Adjusted EBITDA | $ | 132,946 | $ | 100,913 | $ | 406,928 | $ | 321,872 | ||
Less: Depreciation and amortization | (44,823) | (38,857) | (127,656) | (113,952) | ||||||
Add: D&A related to acquisitions and the Refinitiv Transaction | 32,956 | 27,959 | 92,799 | 81,363 | ||||||
Adjusted EBIT | $ | 121,079 | $ | 90,015 | $ | 372,071 | $ | 289,283 | ||
Adjusted EBITDA margin | 50.1 | % | 47.4 | % | 50.9 | % | 48.8 | % | ||
Adjusted EBIT margin | 45.6 | % | 42.3 | % | 46.5 | % | 43.9 | % |
Tradeweb Markets Inc. | ||||||||||
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS | ||||||||||
September 30, 2021 | ||||||||||
(in thousands, except per share amounts) | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
2021 | 2020 | 2021 | 2020 | |||||||
Earnings per diluted share | $ | 0.26 | $ | 0.19 | $ | 0.86 | $ | 0.60 | ||
Net income attributable to Tradeweb Markets Inc. | $ | 54,763 | $ | 36,812 | $ | 177,938 | $ | 111,236 | ||
Net income attributable to non-controlling interests | 10,542 | 10,236 | 35,165 | 40,705 | ||||||
Net income | 65,305 | 47,048 | 213,103 | 151,941 | ||||||
Provision for income taxes | 19,862 | 11,124 | 53,365 | 39,898 | ||||||
Acquisition transaction costs | 459 | - | 5,186 | - | ||||||
D&A related to acquisitions and the Refinitiv Transaction | 32,956 | 27,959 | 92,799 | 81,363 | ||||||
Stock-based compensation expense | 1,995 | 1,816 | 11,181 | 10,308 | ||||||
Foreign exchange (gains)/losses | 141 | 1,719 | (4,742) | 5,837 | ||||||
Tax receivable agreement liability adjustment | - | - | - | - | ||||||
Adjusted Net Income before income taxes | 120,718 | 89,666 | 370,892 | 289,347 | ||||||
Adjusted income taxes | (26,558) | (19,727) | (81,596) | (63,656) | ||||||
Adjusted Net Income | $ | 94,160 | $ | 69,939 | $ | 289,296 | $ | 225,691 | ||
Adjusted Diluted EPS | $ | 0.39 | $ | 0.30 | $ | 1.22 | $ | 0.97 |
Tradeweb Markets Inc. | ||||||||
Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding | ||||||||
September 30, 2021 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Diluted weighted average shares of Class A and Class B common stock outstanding | 208,197,439 | 194,955,695 | 206,908,330 | 185,026,108 | ||||
Assumed exchange of LLC interests for shares of Class A or Class B common stock | 30,531,933 | 39,513,246 | 30,756,925 | 48,397,598 | ||||
Adjusted diluted weighted average shares outstanding | 238,729,372 | 234,468,941 | 237,665,255 | 233,423,706 | ||||
Adjusted Net Income (in thousands) | $ | 94,160 | $ | 69,939 | $ | 289,296 | $ | 225,691 |
Adjusted Diluted EPS | $ | 0.39 | $ | 0.30 | $ | 1.22 | $ | 0.97 |
Tradeweb Markets Inc. | |||||||||
Reconciliation of Operating Expenses to Adjusted Expenses | |||||||||
September 30, 2021 | |||||||||
(dollars in thousands) | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
Reconciliation of Operating Expenses to Adjusted Expenses | 2021 | 2020 | 2021 | 2020 | |||||
Operating Expenses | $ | 179,797 | $ | 154,349 | $ | 531,917 | $ | 467,808 | |
Acquisition transaction costs | (459) | - | (5,186) | - | |||||
D&A related to acquisitions and the Refinitiv Transaction | (32,956) | (27,959) | (92,799) | (81,363) | |||||
Stock-based compensation expense | (1,995) | (1,816) | (11,181) | (10,308) | |||||
Foreign exchange (gains)/losses | (141) | (1,719) | 4,742 | (5,837) | |||||
Adjusted Expenses | $ | 144,246 | $ | 122,855 | $ | 427,493 | $ | 370,300 |
Tradeweb Markets Inc. | ||
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow | ||
September 30, 2021 | ||
(dollars in thousands) | ||
Trailing Twelve Months Ended September 30, 2021 | ||
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow | ||
Cash flow from operating activities | $ | 526,072 |
Less: Capitalization of software development costs | (33,995) | |
Less: Purchases of furniture, equipment and leasehold improvements | (14,720) | |
Free Cash Flow | $ | 477,357 |
Tradeweb Markets Inc. | ||||||||
Basic and Diluted EPS Calculations | ||||||||
September 30, 2021 | ||||||||
(in thousands, except share and per share amounts) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
EPS: Net income attributable to Tradeweb Markets Inc. | 2021 | 2020 | 2021 | 2020 | ||||
Numerator: | ||||||||
Net income attributable to Tradeweb Markets Inc. | $ | 54,763 | $ | 36,812 | $ | 177,938 | $ | 111,236 |
Denominator: | ||||||||
Weighted average shares of Class A and Class B common stock outstanding - Basic | 202,238,122 | 187,774,170 | 201,029,196 | 177,257,994 | ||||
Dilutive effect of equity-settled PRSUs | 2,146,473 | 2,584,192 | 2,000,005 | 2,371,727 | ||||
Dilutive effect of options | 3,516,893 | 4,402,391 | 3,609,906 | 5,264,106 | ||||
Dilutive effect of RSUs | 295,951 | 194,942 | 269,223 | 132,281 | ||||
Weighted average shares of Class A and Class B common stock outstanding - Diluted | $ | 208,197,439 | $ | 194,955,695 | $ | 206,908,330 | $ | 185,026,108 |
Earnings per share - Basic | $ | 0.27 | $ | 0.20 | $ | 0.89 | $ | 0.63 |
Earnings per share - Diluted | $ | 0.26 | $ | 0.19 | $ | 0.86 | $ | 0.60 |
Tradeweb Markets Inc. | |||||||||||||||||
Revenue by Asset Class (QTD) | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
September 30, 2021 | September 30, 2020 | $ Change | % Change | ||||||||||||||
Variable | Fixed | Variable | Fixed | Variable | Fixed | Variable | Fixed | ||||||||||
Revenues | |||||||||||||||||
Rates | $ | 80,888 | $ | 58,530 | $ | 64,139 | $ | 51,627 | $ | 16,749 | $ | 6,903 | 26.1 | % | 13.4 | % | |
Credit | 65,742 | 6,501 | 44,278 | 5,938 | 21,464 | 563 | 48.5 | % | 9.5 | % | |||||||
Equities | 14,235 | 2,222 | 9,329 | 2,528 | 4,906 | (306) | 52.6 | % | (12.1) | % | |||||||
Money Markets | 7,198 | 4,023 | 6,390 | 4,101 | 808 | (78) | 12.6 | % | (1.9) | % | |||||||
Market Data | - | 20,515 | - | 18,598 | - | 1,917 | - | 10.3 | % | ||||||||
Other | - | 5,471 | - | 5,942 | - | (471) | - | (7.9) | % | ||||||||
Total revenue | $ | 168,063 | $ | 97,262 | $ | 124,136 | $ | 88,734 | $ | 43,927 | $ | 8,528 | 35.4 | % | 9.6 | % |
Tradeweb Markets Inc. | |||||||
Fees per Million (QTD) | |||||||
September 30, 2021 | |||||||
Three Months Ended September 30, | YoY | ||||||
2021 | 2020 | % Change | |||||
Rates | $ 2.15 | $ 2.03 | 5.8% | ||||
Cash Rates | $ 1.95 | $ 1.83 | 6.5% | ||||
Rates Derivatives | $ 2.42 | $ 2.37 | 1.9% | ||||
Swaps / Swaptions Tenor (greater than 1 year) | $ 3.73 | $ 3.37 | 10.9% | ||||
Other Rates Derivatives | $ 0.20 | $ 0.25 | (18.4%) | ||||
Credit | $ 45.67 | $ 34.89 | 30.9% | ||||
Cash Credit | $ 144.48 | $ 127.70 | 13.1% | ||||
Credit Derivatives and U.S. Cash 'EP' | $ 6.16 | $ 6.02 | 2.4% | ||||
Equities | $ 15.20 | $ 15.95 | (4.7%) | ||||
Cash Equities | $ 24.37 | $ 20.25 | 20.3% | ||||
Equity Derivatives | $ 5.23 | $ 9.46 | (44.7%) | ||||
Money Markets (Cash) | $ 0.33 | $ 0.38 | (14.3%) | ||||
Total Fees per Million | $ 2.70 | $ 2.47 | 9.5% | ||||
Total Fees per Million excluding Other Rates Derivatives | $ 2.97 | $ 2.65 | 12.2% |
Tradeweb Markets Inc. | ||||||
Average Daily Volume (QTD) | ||||||
September 30, 2021 | ||||||
2021 Q3 | 2020 Q3 | YoY | ||||
Asset Class | Product | ADV (USD mm) | Volume (USD mm) | ADV (USD mm) | Volume (USD mm) | ADV |
Rates | Cash | 337,167 | 21,632,199 | 311,033 | 19,951,302 | 8.40% |
U.S. Government Bonds | 124,578 | 7,972,973 | 86,956 | 5,565,202 | 43.26% | |
European Government Bonds | 28,800 | 1,900,795 | 24,317 | 1,604,918 | 18.44% | |
Mortgages | 180,033 | 11,522,093 | 195,986 | 12,543,075 | -8.14% | |
Other Government Bonds | 3,757 | 236,337 | 3,774 | 238,107 | -0.46% | |
Derivatives | 246,981 | 15,992,323 | 179,054 | 11,612,291 | 37.94% | |
Swaps/Swaptions ≥ 1Y | 154,970 | 10,039,311 | 122,341 | 7,919,286 | 26.67% | |
Swaps/Swaptions < 1Y | 91,240 | 5,903,695 | 56,317 | 3,667,678 | 62.01% | |
Futures | 770 | 49,317 | 396 | 25,327 | 94.69% | |
Total | 584,148 | 37,624,522 | 490,087 | 31,563,593 | 19.19% | |
Credit | Cash | 8,440 | 543,735 | 7,036 | 455,496 | 19.95% |
U.S. High-Grade | 4,371 | 279,755 | 3,821 | 244,569 | 14.39% | |
U.S. High-Yield | 836 | 53,502 | 406 | 25,978 | 105.95% | |
European Credit | 1,707 | 112,653 | 1,270 | 83,831 | 34.38% | |
Municipal Bonds | 173 | 11,056 | 201 | 12,851 | -13.96% | |
Chinese Bonds | 1,233 | 78,893 | 1,277 | 84,292 | -3.48% | |
Other Credit Bonds | 121 | 7,876 | 61 | 3,975 | 98.33% | |
Derivatives | 13,796 | 895,891 | 12,507 | 813,562 | 10.31% | |
Swaps | 13,796 | 895,891 | 12,507 | 813,562 | 10.31% | |
Total | 22,237 | 1,439,626 | 19,543 | 1,269,058 | 13.78% | |
Equities | Cash | 7,551 | 487,509 | 5,442 | 351,468 | 38.75% |
U.S. ETFs | 5,421 | 346,951 | 3,849 | 246,367 | 40.83% | |
Europe ETFs | 2,130 | 140,558 | 1,592 | 105,101 | 33.74% | |
Derivatives | 6,992 | 449,243 | 3,624 | 233,482 | 92.93% | |
Options/Convertibles/Swaps | 3,559 | 229,356 | 1,188 | 77,469 | 199.49% | |
Futures | 3,433 | 219,886 | 2,436 | 156,014 | 40.94% | |
Total | 14,543 | 936,752 | 9,066 | 584,950 | 60.41% | |
Money Markets | Cash | 343,536 | 22,138,406 | 261,590 | 16,847,205 | 31.33% |
Repurchase Agreements (Repo) | 329,374 | 21,231,648 | 250,039 | 16,106,552 | 31.73% | |
Other Money Markets | 14,162 | 906,758 | 11,551 | 740,653 | 22.60% | |
Total | 343,536 | 22,138,406 | 261,590 | 16,847,205 | 31.33% | |
2021 Q3 | 2020 Q3 | YoY | ||||
ADV (USD mm) | Volume (USD mm) | ADV (USD mm) | Volume (USD mm) | ADV | ||
Total | 964,464 | 62,139,306 | 780,286 | 50,264,805 | 23.60% |