Tradeweb Markets Inc (TW) Reports Q3 2023 Financial Results
Tradeweb Markets Inc (NASDAQ:TW) reported Q3 2023 revenues of $328.4 million, a 14.4% increase compared to the same period last year.
The company's net income for the quarter was $111.6 million, up 36.9% from the prior year period.
Tradeweb's average daily volume (ADV) for the quarter was $1.4 trillion, a 29.6% increase compared to the prior year period.
The company declared a quarterly cash dividend of $0.09 per share and repurchased $4.9 million of shares.
On October 26, 2023, Tradeweb Markets Inc (NASDAQ:TW), a leading global operator of electronic marketplaces for rates, credit, equities, and money markets, released its financial results for the third quarter of 2023. The company reported a significant increase in revenues and net income compared to the same period last year.
Financial Highlights
Tradeweb's Q3 2023 revenues reached $328.4 million, marking a 14.4% increase compared to the prior year period. The company's net income for the quarter was $111.6 million, a significant increase of 36.9% from the prior year period. Adjusted EBITDA for the quarter was $170.4 million, compared to $146.3 million for the prior year period, representing an increase of 16.4%. Diluted earnings per share (Diluted EPS) for the quarter were $0.46.
Operational Achievements
Tradeweb's average daily volume (ADV) for the quarter was $1.4 trillion, a 29.6% increase compared to the prior year period. The company achieved quarterly ADV records in fully electronic U.S. High Grade credit, global repurchase agreements, Chinese bonds, and swaps/swaptions. The company also declared a quarterly cash dividend of $0.09 per share and repurchased $4.9 million of shares.
CEO Commentary
Billy Hult, CEO of Tradeweb, commented on the results: "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."
Financial Tables and Analysis
The financial tables provided in the report detail the performance of various asset classes, including rates, credit, equities, and money markets. Rates revenues increased by 16.6% compared to the prior year period, while credit revenues increased by 15.3%. Equities revenues decreased by 1.8%, and money markets revenues increased by 21.5%. The company's total revenue increased by 14.4% compared to the prior year period.
Future Outlook
Tradeweb also provided updated full-year 2023 guidance, including adjusted expenses of $670 - 659 million, acquisition and Refinitiv Transaction related depreciation and amortization expense of $128 million, assumed non-GAAP tax rate of ~24% - 25%, and cash costs of non-acquisition capital expenditures and capitalized software development of $56 - 63 million.
Explore the complete 8-K earnings release (here) from Tradeweb Markets Inc for further details.
This article first appeared on GuruFocus.
