Tradeweb Markets Inc. · NASDAQ:TW
Tradeweb Markets — Q4 2024 Earnings Presentation
24 slides from Tradeweb Markets's earnings presentation, Feb 6, 2025
Slide 1: 4Q24 Earnings Conference Call
4Q24 EARNINGS CONFERENCE CALL FEBRUARY 6, 2025 © 2025 Tradeweb Markets LLC. All rights reserved.
Slide 2: Disclaimers
Disclaimers The information in this presentation is current only as of its date and may have changed. We undertake no obligation to update this information in light of new information, future events or otherwise. Basis of Presentation Tradeweb Markets Inc. (unless the context otherwise requires, tog
Slide 3: 4Q24 Earnings Call Participants
4Q24 Earnings Call Participants STRATEGIC REVIEW & GROWTH INTIATIVES Billy Hult CHIEF EXECUTIVE OFFICER FINANCIAL REVIEW WELCOME/ Sara Furber INTRODUCTION CHIEF FINANCIAL OFFICER Ashley Serrao HEAD OF TREASURY, FP&A & IR 3 ©2025 Tradeweb Markets LLC. All rights reserved.
Slide 4: 4Q24 Summary
4Q24 Summary OPERATING PERFORMANCE HIGHLIGHTS REVENUE INTERNATIONAL ADJUSTED REVENUES NET INCOME2 $463.3M $188.6M $181.2M +25.2% y/y* +37.5% y/y +19.2% y/y +25.5% y/y (CC**)1 +38.2% y/y (CC)1 +19.4% y/y (CC)1 ADJUSTED ADJUSTED ADJUSTED EBITDA MARGIN2 EBIT MARGIN2 DILUTED EPS2 52.8% 49.1% $0.76 -14 b
Slide 5: 4Q24 Revenue Results
4Q24 Revenue Results ($ in millions) 4Q24 REVENUE GROWTH OF 25.2% (CC 25.5% Y/Y)1 FY24 GROWTH OF 29.0% (CC 29.0% Y/Y)1 4Q24 y/y growth % 25.3% 8.9% 10.3% 166.5% 15.8% 21.1% 25.2% 4Q24 y/y constant currency growth % 1 25.8% 9.1% 10.6% 165.5% 15.9% 21.0% 25.5% FY24 y/y growth % 30.1% 24.9% 9.3% 82.9%
Slide 6: A Growth Company
A Growth Company Continuing to Strike the Right Balance Between Investing to Drive Revenue Growth & Margin Expansion GROWTH FROM 2016-2024 16.2% 23.2% 21.0% 24.9% REVENUE (CAGR) GROWTH ADJUSTED EBIT ADJUSTED EBITDA FREE CASH GROWTH1 GROWTH1 FLOW1 BENCHMARKING PERFORMANCE FY 2024 FY 2023 Y/Y GROWTH V
Slide 7: Asset Class Growth Led By Rates & Credit in 2024
Asset Class Growth Led By Rates & Credit in 2024 STRONG REVENUE GROWTH ACROSS ASSET CLASSES1 INTERNATIONAL REVENUES CONTINUE TO SCALE1 ($ in millions) ($ in millions) $1,726 $1,800 $700 $665 $1,600 $1,338 $1,400 $600 $1,189 $1,200 $1,076 $488 $500 $428 $1,000 $893 $403 $776 $800 $684 $400 $563 $323
Slide 8: Key Growth Initiatives
Key Growth Initiatives GLOBAL IRS (ADV AND SHARE1) 4Q24 Y/Y Growth U.S. TREASURIES (ADV AND SHARE2) 4Q24 Y/Y Growth ($ in billions) Total: +7% ($ in billions) Total: +39% Swaps/Swaptions≥ 1Y Swaps/Swaptions< 1Y Overall Share (%) $250 ADV Share (%) 30% 23.0% 25.1% 23.6% $225 27% 23.6% 22.4% 25.0% 22.
Slide 9: Credit Growth Initiatives
Credit Growth Initiatives EXPANDING SHARE1,2 (Share of TRACE GROWING FOUNDATIONAL U.S. RFQ PROTOCOL $ in billions, ADV) ($ in millions, ADV) Inst. $2,491 Client 725 763 839 905 1,001 Count U.S. Investment Grade 26.8% $1,856 25.2% $9.8 24.1% $7.9 19.6% 22.6% $6.5 8.5% $4.5 $5.0 9.7% 8.0% $1,444 9.5%
Slide 10: IRS Growth Initiatives
IRS Growth Initiatives GLOBAL INDUSTRY INTEREST RATE SWAPS ADV 1 TRADEWEB MARKET SHARE BY CURRENCY1,2 ($ in trillions) $3.5 31.0% $3.5 $2.9 25.3% $3.0 $2.7 22.2% $2.3 $2.4 21.4% 22.6% $2.5 $2.3 $2.0 18.3% 17.9% $1.9 $2.0 15.0% 15.0% 14.5% $1.5 9.5% 9.3% $1.0 $0.5 $0.0 2017 2018 2019 2020 2021 2022 2
Slide 11: 4Q24 Financial Performance
4Q24 Financial Performance1 ($ in thousands, except share and per share amounts) 4Q24 REVENUE GROWTH OF 25.2% (25.5% CC)2 WITH 4Q24 ADJ. EBITDA MARGIN OF 52.8% FY24 ADJ. EBITDA MARGIN EXPANSION OF +91 bps to 53.3% vs. FY 2023 OF 52.4% %∆ %∆ Constant Currency 4Q24 4Q23 4Q24 vs 4Q23 4Q24 vs 4Q232 Trad
Slide 12: Fees per Million Detail
Fees per Million1 Detail %∆ %∆ 4Q24 3Q24 4Q23 4Q24 vs 3Q24 4Q24 vs 4Q23 Rates $ 2.23 $ 2.07 $ 1.95 7.8 % 14.5 % Rates Cash $ 2.37 $ 2.45 $ 2.47 (3.4) % (4.2) % Rates Derivatives $ 2.14 $ 1.85 $ 1.66 15.8 % 29.1 % Rates Derivatives >= 1 Yr $ 3.65 $ 3.19 $ 2.36 14.4 % 54.6 % Other Rates Derivatives2 $
Slide 13: Adjusted Expenses Detail
Adjusted Expenses1 Detail ($ in thousands) 4Q24 ADJUSTED EXPENSES INCREASED 24.8% (25.2% CC y/y)2 FY24 ADJUSTED EXPENSES INCREASED 25.1% (25.4% CC y/y)2 %∆ Const. %∆ Const. %∆ Currency %∆ Currency 4Q24 4Q23 4Q24 vs 4Q23 4Q24 vs 4Q232 FY24 vs FY23 FY24 vs FY232 Adjusted Expenses Employee compensation
Slide 14: Capital Management & FY Guidance
Capital Management & FY Guidance Capital Management Key Highlights ▪ $1.3 billion in cash and cash equivalents (December 31st, 2024) and undrawn $500 million credit facility ▪ FY24 FCF: $808.9 million1 (+18.2% yr/yr) ▪ FY24 Cash paid for capex & cap software development: $88.9 million5 (+43.9% yr/yr
Slide 15: Share Count Sensitivity
Share Count Sensitivity PRO FORMA ADJUSTED FULLY DILUTED WEIGHTED AVERAGE SHARES Assumed Average Share Price Q1 2025 $110.00 237,728,040 $120.00 237,791,309 $130.00 237,845,956 $140.00 237,892,795 $150.00 237,933,390 The pro forma adjusted fully diluted weighted average shares outstanding and assume
Slide 16: Appendix
APPENDIX 16 ©2025 Tradeweb Markets LLC. All rights reserved.
Slide 17: Quarterly ADV
Quarterly ADV 4Q24 ADV of $2,292BN (+36.7% y/y, +35.9% ex Swaps <1 year) KEY RATES1 4Q24 Y/Y GROWTH CREDIT1 4Q24 Y/Y GROWTH ($ in billions) Total: +15% ($ in billions) Total: +13% Cash: +28% Cash: +3% Derivatives: +8% Derivatives: +28% $1,500 $1,266 $1,298 $42.6 $1,249 $1,253 $45 $1,250 $1,087 $40 $
Slide 18: Fee Per Million (FPM) Commentary
Fee Per Million (FPM) Commentary RATES Avg FPM: +15% CREDIT Avg FPM: -7% Cash Rates: -4% Cash Credit: -12% • Lower FPM primarily due to lower FPM in US Government Bonds. • Lower FPM due to a mix shift away from municipals, which carry a higher FPM, and a change in dealer fee plans from variable to f
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (dollars in thousands) Successor Successor Successor Successor Successor Successor Successor Successor Successor Predecessor Predecessor Predecessor Net Income to Adjusted EBITDA, Adjusted EBIT and Adjusted EBT 4Q24 4Q23 FY24 FY23 FY22 FY21 FY20 FY19 4Q1
Slide 20: Reconciliation of Non-GAAP Financial Measures cont.
Reconciliation of Non-GAAP Financial Measures cont. (dollars in thousands, except per share amounts) Reconciliation of Operating Expenses to Adjusted Expenses 4Q24 4Q23 FY24 FY23 Operating expenses $ 274,804 $ 228,370 $ 1,047,921 $ 832,950 Merger and acquisition transaction and integration costs 1 (
Slide 21: Reconciliation of Non-GAAP Financial Measures cont.
Reconciliation of Non-GAAP Financial Measures cont. (dollars in thousands, except per share amounts) Reconciliation of Net Income attributable to Tradeweb Markets Inc. Successor Successor Successor Successor Successor Successor Successor Successor Successor Predecessor Predecessor Predecessor to Adj
Slide 22: Quarterly Volumes
Quarterly Volumes Q4 2024 Q3 2024 Q4 2023 QoQ YoY Asset Class Product ADV (USD mm) Volume (USD mm) ADV (USD mm) Volume (USD mm) ADV (USD mm) Volume (USD mm) ADV ADV Rates Cash 508,863 31,654,127 496,603 31,860,817 397,946 24,713,727 2.47% 27.87% U.S. Government Bonds 224,928 13,945,561 221,864 14,19
Slide 23: U.S. Corporate Bonds
U.S. Corporate Bonds USING MARKET REPORTING STANDARDS TRADEWEB MARKETS Q4 2024 Q3 2024 Q4 2023 QoQ YoY Volume (USD mm) Trades Volume (USD mm) Trades Volume (USD mm) Trades Volume (USD mm) Volume (USD mm) % of % of % of % of % of % of % of % of Product Type ADV Total TRACE ADT Total TRACE ADV Total T
Slide 24: Contacts
Contacts Tradeweb Markets Inc. 1177 Avenue of the Americas New York, NY 10036 www.tradeweb.com Ashley Serrao, CMA, CFA Sameer Murukutla, CFA Head of Treasury, FP&A & Investor Relations Managing Director, Investor Relations Tel: 646-430-6027 Tel: 646-767-4864 Email: ashley.serrao@tradeweb.com Email: