Tradeweb Markets Inc. (NASDAQ:TW), a global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the quarter ended March 31, 2024.
The company posted $408.7 million quarterly revenues, an increase of 24.1% (23.8% on a constant currency basis) compared to prior year period.
Equities delivered revenues of $27.1 million in the first quarter of 2024, up 3.2% compared to prior year period (increased 2.8% on a constant currency basis). Equities ADV was up 40.5% from prior year period, driven by record activity in equity convertibles/swaps/options.
Money Markets generated revenues of $16.8 million in the first quarter of 2024, up 13.4% compared to prior year period (increased 13.1% on a constant currency basis). Money Markets ADV was up 30.3% from prior year period, led by record activity in global repurchase agreements and increased client adoption of Tradeweb’s electronic trading solutions.
Market Data revenues of $29.0 million in the first quarter of 2024 increased 29.4% compared to prior year period (increased 28.8% on a constant currency basis). The increase was derived primarily from increased LSEG market data fees from the contract that was amended effective November 1, 2023 and proprietary third party market data revenue.
Tradeweb saw $1.9 trillion average daily volume (“ADV”) during the quarter, an increase of 39.1% compared to prior year period; quarterly ADV records in fully electronic U.S. High Grade credit, U.S. government bonds, European government bonds, swaps/swaptions ≥ 1-year, European credit, U.S. ETFs, equity convertibles/swaps/options, global repurchase agreements; record 17.6% share of fully electronic U.S. High Grade TRACE.
The company registered $143.4 million in net income and $167.9 million adjusted net income for the quarter, increases of 40.3% and 30.1% respectively from prior year period.
The company recorded $0.59 of diluted earnings per share (“Diluted EPS”) and $0.71 adjusted diluted earnings per share for the quarter.
The Board declared $0.10 per share quarterly cash dividend.
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 laser-focused 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 technology is how markets are going to get there.”
