NEW YORK - Tradeweb Markets Inc . (NASDAQ:TW), a prominent global operator of electronic marketplaces for rates, credit, equities, and money markets, today reported its financial results for the first quarter ended March 31, 2024.
The company announced a quarterly revenue of $408.7 million, a notable 24.1% increase from the previous year, and a 23.8% increase on a constant currency basis. This growth was propelled by record average daily volumes (ADV) across multiple asset classes, including U.S. government bonds and European government bonds, which saw a 39.1% increase compared to the prior year period.
For the first quarter, Tradeweb reported adjusted diluted earnings per share (EPS) of $0.71, precisely aligning with analyst estimates. The company's net income rose to $143.4 million, marking a substantial 40.3% increase from the prior year, with adjusted net income also up by 30.1% at $167.9 million.
Shares of Tradeweb were down 1% in premarket trading due to revenues narrowly missing the consensus estimate of $410.03 million. CEO Billy Hult commented on the company's strong start to the year, emphasizing organic growth and strategic milestones, including the acquisition of r8fin and the agreement to acquire ICD.
Tradeweb's diverse revenue streams contributed to the quarter's success, with rates, credit, equities, and money markets all reporting increases. The company's market data revenue also saw a significant 29.4% rise, driven by increased LSEG market data fees and proprietary third-party market data revenue.
Looking ahead, Tradeweb provided updated full-year 2024 guidance, with adjusted expenses trending towards the top end of the $755 - 805 million range. The company also anticipates an LSEG market data contract revenue of approximately $80 million, with an increase to around $90 million in 2025.
Tradeweb's capital management remains strong, with $1.5 billion in cash and cash equivalents and an undrawn $500 million credit facility. The company's board declared a quarterly cash dividend of $0.10 per share, payable on June 17, 2024, to stockholders of record as of June 3, 2024.
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