Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms, focusing on dividend stocks and general market commentary [1] - The author has covered over 200 companies across multiple sectors and has gained over 1,000 followers since 2023 [1] - Albert Anthony has experience as an analyst in the IT sector and has worked for a top 10 financial firm in the US [1] Group 2 - The author plans to launch a new book in 2025 on Amazon discussing his methodology for stock rating [1] - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas [1] - The author does not provide personalized financial advice and does not hold material positions in any rated stocks at the time of rating [1]

Financial Data and Key Metrics Changes - The company achieved record revenues of $510 million, representing a 24.7% year-over-year increase on a reported basis and a 25.8% increase on a constant currency basis [27][28] - Adjusted EBITDA margin increased by 125 basis points compared to the previous year [32] - Variable revenues increased by 27%, while total trading revenues rose by 24% [28][29] Business Line Data and Key Metrics Changes - The rates business produced record revenues driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenue growth was led by strong performance in municipal bonds and credit derivatives, with high single-digit growth overall [14] - Equities saw double-digit revenue growth, particularly in global ETFs and equity derivatives [8] - Market data revenues increased due to growth in LSEG market data contracts and proprietary data products [8] Market Data and Key Metrics Changes - The U.S. Treasury market experienced significant volatility, with daily yield movements exceeding historical averages [10] - The company's market share in institutional U.S. Treasuries reached over 50% for the fourth consecutive quarter [11] - Emerging markets credit revenues grew nearly 20% year-over-year, indicating strong momentum [21] Company Strategy and Development Direction - The company aims to transition more voice and paper markets to transparent electronic markets, focusing on organic growth and potential M&A opportunities [37] - There is a strong emphasis on automation and enhancing client relationships to drive future growth [7][20] - The company is prioritizing the onboarding of more liquidity providers and enhancing liquidity pools in its wholesale business [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that macro uncertainty and geopolitical risks have created a dynamic trading environment, but client engagement remains strong [7][38] - The company is confident in its long-term growth outlook, supported by a diverse global multi-asset footprint [39][106] - Management highlighted the importance of maintaining a resilient electronic trading ecosystem amid market volatility [38] Other Important Information - The company ended the quarter with $1.3 billion in cash and cash equivalents, and free cash flow reached approximately $834 million for the trailing twelve months [33] - A quarterly dividend of $0.12 per share was declared, representing a 20% increase year-over-year [34] Q&A Session Summary Question: Can you provide insights on the rate market's health and customer positioning? - Management discussed unprecedented volatility in the rates market, with significant moves in treasury yields and high yield spreads [46][49] - They emphasized the resilience of market function and the importance of platform reliability during periods of stress [50][51] Question: What is the status of the transition from variable to fixed pricing in the credit market? - Management indicated that the transition is ongoing, with expectations for fixed revenues to increase significantly in the coming quarters [62][64] Question: How does the recent Citadel announcement impact Tradeweb's credit business? - Management expressed confidence that Citadel's entry into the credit space would enhance market velocity and benefit Tradeweb's business [75][76] Question: What are the implications of potential regulatory changes on the treasury market? - Management highlighted that loosening capital requirements could improve liquidity and turnover in the treasury market, benefiting Tradeweb [96][97] Question: How does the perception of U.S. exceptionalism affect Tradeweb's business? - Management noted that while there are concerns about the U.S. brand, the company's diverse business model and international revenue growth provide a buffer against potential risks [105][106]

Financial Data and Key Metrics Changes - The company achieved record revenues of $510 million, representing a 24.7% year-over-year increase on a reported basis and a 25.8% increase on a constant currency basis [26] - Adjusted EBITDA margin increased by 125 basis points compared to the full year margins of 2024, reaching 54.6% [28] - Variable revenues increased by 27%, while total trading revenues rose by 24% [27] Business Line Data and Key Metrics Changes - The rates business produced record revenues driven by organic growth across swaps, global government bonds, and mortgages [7] - Credit revenue growth was led by strong performance in municipal bonds and credit derivatives, with overall high single-digit growth [13] - Equities experienced double-digit revenue growth, particularly in the global ETF and equity derivatives business [8] - Market data revenues grew due to increased demand for LSEG market data contracts and proprietary data products [8] Market Data and Key Metrics Changes - The U.S. Treasury market saw significant volatility, with over 25 trading days experiencing yield movements twice the historical average [9] - The company's market share in U.S. Treasuries reached 23%, with record revenues up 13% year-over-year [9] - Institutional U.S. Treasuries market share exceeded 50% for the fourth consecutive quarter [10] Company Strategy and Development Direction - The company aims to transition more voice and paper markets to transparent electronic markets and is focused on organic growth and potential M&A opportunities [36] - There is a strong emphasis on automation and enhancing client relationships to drive future growth [6][20] - The company is prioritizing the onboarding of liquidity providers and expanding its liquidity pools in the wholesale market [11] Management's Comments on Operating Environment and Future Outlook - Management noted that macro uncertainty and geopolitical risks have created a dynamic trading environment, but client engagement remains strong [6][37] - The company is optimistic about long-term growth, citing a diverse revenue base and strong international presence [38][95] - Management highlighted the importance of maintaining a resilient electronic trading ecosystem amid market volatility [37] Other Important Information - The company ended the quarter with $1.3 billion in cash and cash equivalents, and free cash flow reached approximately $834 million for the trailing twelve months [33] - A quarterly dividend of $0.12 per share was declared, representing a 20% increase year-over-year [34] Q&A Session Summary Question: Can you provide insights on the rate market's health and customer positioning? - Management discussed unprecedented volatility in the rates market, with significant yield movements and a resilient market function [44][49] Question: What is the status of the transition from variable to fixed pricing in the credit market? - Management indicated a gradual shift towards fixed pricing, with expectations for recurring revenues to increase significantly in the upcoming quarters [59][60] Question: How does the recent Citadel announcement impact Tradeweb's credit trading? - Management expressed confidence that Citadel's moves could enhance market liquidity and create opportunities for Tradeweb [66][68] Question: What are the implications of potential regulatory changes on capital requirements for holding treasuries? - Management believes that loosening banking regulations could enhance liquidity and turnover in the treasury market, benefiting Tradeweb [87][88] Question: How does the perception of U.S. exceptionalism affect Tradeweb's business? - Management emphasized the strength of their diversified business model and international presence, which mitigates risks associated with U.S. market fluctuations [95][96]

Core Viewpoint - Tradeweb Markets reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and showing an increase from $0.71 per share a year ago, indicating a positive earnings surprise of 1.18% [1] Financial Performance - The company achieved revenues of $509.68 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.51%, and up from $408.74 million in the same quarter last year [2] - Over the last four quarters, Tradeweb has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Tradeweb shares have increased approximately 4.9% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $496.33 million, and for the current fiscal year, it is $3.40 on revenues of $2.03 billion [7] - The estimate revisions trend for Tradeweb is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Financial - Investment Bank industry, to which Tradeweb belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges ahead [8]

Client Base and Market Position - The company serves over 3,000 clients globally across various sectors, facilitating trading in multiple asset classes including rates, credit, equities, and money markets[204]. - The company operates in a competitive environment where it must continuously innovate to maintain its market position and client relationships[216]. - The company anticipates continued growth driven by market volatility and strategic acquisitions, including ICD[245]. Financial Performance - Total revenue for Q1 2025 was $509.7 million, a 24.7% increase from $408.7 million in Q1 2024[243]. - Operating income rose to $204.1 million, a 21.7% increase from $167.7 million in Q1 2024[243]. - Net income attributable to Tradeweb Markets Inc. was $148.4 million, reflecting a 17.6% increase from $126.1 million in Q1 2024[243]. - Adjusted EBITDA for Q1 2025 was $278.2 million, up from $219.5 million in Q1 2024, with an Adjusted EBITDA margin of 54.6%[331]. - Net income for Q1 2025 was $168.3 million, compared to $143.4 million in Q1 2024, resulting in a net income margin of 33.0%[331]. Revenue Sources - The company's revenue is primarily derived from transaction fees, commissions, subscription fees, and market data fees, with a mix of fixed and variable pricing structures[224]. - Transaction fees and commissions accounted for $421.3 million, representing 82.7% of total revenue, up 25.6% from $335.5 million in Q1 2024[244]. - Revenue from rates derivatives products, U.S. government bonds, and credit derivatives significantly contributed to the $100.9 million revenue increase[245]. - Revenue from money markets surged by 160.3% to $43.7 million, up from $16.8 million in Q1 2024[246]. Expenses and Costs - Total operating expenses increased by $64.5 million or 26.8% to $305.6 million, with significant increases in employee compensation and benefits, and technology and communications expenses[268]. - General and administrative expenses are expected to rise as the company expands its employee base and product offerings[232]. - The company incurred $2.5 million in merger and acquisition transaction costs in Q1 2025, down from $3.6 million in Q1 2024[331]. Market Activity and Volatility - The overall market activity, including trading volumes and volatility, significantly impacts the company's performance, with lower volatility potentially leading to reduced trading volumes[212]. - Average daily volume (ADV) for rates increased by 14.0% to $1,443.0 billion for the three months ended March 31, 2025, compared to $1,265.7 billion in 2024[250]. - The acquisition of ICD contributed to broad-based volume growth amid market volatility, enhancing the company's market share[245]. Regulatory Environment - The company is subject to extensive regulations that may increase compliance costs and impact profitability, but regulatory changes could also drive demand for its platforms[215]. - The company expects a shift from variable to fixed revenues due to changes in contracts, including the introduction of minimum fee floors, which is anticipated to be neutral to total revenue but accretive to long-term market share[227]. Cybersecurity and Risk Management - The company has experienced cyber threats and is investing in cybersecurity infrastructure to mitigate potential risks to revenue and operating income[218]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the three months ended March 31, 2025, was $60.2 million, compared to $37.9 million for the same period in 2024[311]. - Total cash paid for capital expenditures and software development costs for fiscal year 2025 is expected to be between $99 million and $109 million, a 17% increase from fiscal year 2024[302]. Shareholder Returns - The board of directors declared a cash dividend of $0.12 per share for the second quarter of 2025, payable on June 16, 2025[287]. - TWM LLC made quarterly cash distributions totaling $75.8 million in March 2025, with Tradeweb Markets Inc. receiving $68.4 million[290]. Taxation - The company entered into a Tax Receivable Agreement that provides for the payment of 50% of U.S. federal, state, and local income tax savings realized, with payments expected over 15 years[359]. - The provision for income taxes in Q1 2025 was $53,279,000, compared to $43,638,000 in Q1 2024, reflecting a 22.1% increase[337].

Financial Performance - Tradeweb reported quarterly revenues of $509.7 million, an increase of 24.7% year-over-year (25.8% on a constant currency basis) for Q1 2025[2]. - Net income for the quarter was $168.3 million, a 17.4% increase from the prior year, while adjusted net income rose by 22.5% to $205.7 million[2]. - Adjusted EBITDA margin improved to 54.6%, with adjusted EBITDA of $278.2 million, compared to 53.7% and $219.5 million in the prior year[2]. - Tradeweb Markets reported total revenue of $509.7 million for the three months ended March 31, 2025, an increase of 24.6% compared to $408.7 million in the same period of 2024[26]. - Transaction fees and commissions rose to $421.3 million, up 25.6% from $335.5 million year-over-year[26]. - Adjusted EBITDA for Q1 2025 was $278.2 million, representing a margin of 54.6%, compared to $219.5 million and a margin of 53.7% in Q1 2024[27]. - Net income attributable to Tradeweb Markets Inc. was $148.4 million, up 17.6% from $126.1 million in the same quarter of the previous year[26]. - Total revenue for Tradeweb Markets Inc. reached $380.0 million in Q1 2025, a 27.1% increase from $299.1 million in Q1 2024[43]. - The company reported a basic earnings per share (EPS) of $0.70 for Q1 2025, up from $0.59 in Q1 2024, marking an increase of 18.6%[42]. - Tradeweb's diluted EPS for Q1 2025 was $0.69, compared to $0.59 in Q1 2024, reflecting a year-over-year increase of 16.9%[42]. Volume and Market Activity - Average daily volume (ADV) reached $2.5 trillion, up 33.7% compared to the prior year, with record ADV in various asset classes including U.S. government bonds and European government bonds[2][3]. - Tradeweb facilitated more than $2.2 trillion in notional value traded per day over the past four fiscal quarters[23]. - Average Daily Volume (ADV) increased by 33.7% year-over-year to $2.55 million in Q1 2025, compared to $1.90 million in Q1 2024[47]. - Tradeweb captured nearly 26% of total U.S. high grade TRACE and 18% of fully electronic share, reflecting strong market share trends in credit[4][9]. Revenue Sources - Revenues from Money Markets surged by 160.3% year-over-year to $43.7 million, driven by the acquisition of ICD and record activity in global repurchase agreements[11]. - Tradeweb's revenue from Rates asset class increased by 28.4% to $197.4 million in Q1 2025, compared to $153.7 million in Q1 2024[43]. - The average variable fees per million dollars of volume for Rates increased by 12.3% to $2.22 in Q1 2025, compared to $1.98 in Q1 2024[44]. - The company experienced a significant increase in Money Markets revenue, which rose by 213.6% to $39.4 million in Q1 2025 from $12.6 million in Q1 2024[43]. Expenses and Cash Flow - Operating expenses increased by 26.8% to $305.6 million, primarily due to higher employee compensation and increased depreciation related to acquisitions[14]. - Total expenses for the first quarter were $305.6 million, up from $241.1 million in the prior year, primarily driven by increased employee compensation and benefits[26]. - Free cash flow for the trailing twelve months ended March 31, 2025, was $833.6 million, reflecting a 28.1% increase compared to the prior year[24]. - The company achieved Free Cash Flow of $833.6 million for the trailing twelve months ended March 31, 2025, up from $650.8 million in the previous year, reflecting a growth of 28.0%[41]. Leadership and Strategic Developments - The company appointed Troy Dixon and Enrico Bruni as co-heads of global markets, enhancing leadership capabilities[17]. - Tradeweb became the first institutional marketplace to complete an electronic portfolio trading transaction for European government bonds in April 2025[16]. Guidance and Future Outlook - Full-Year 2025 guidance remains unchanged, with expense guidance assuming an average 2025 Sterling/US$ foreign exchange rate of 1.28[20]. - The company has provided forward-looking statements regarding full-year 2025 guidance, including revenue expectations related to the LSEG market data license agreement[52]. - Management's estimates regarding market and industry data are based on knowledge and experience, along with information from various sources, although no guarantees of accuracy are made[62]. Non-GAAP Measures and Financial Reporting - The company emphasizes the use of non-GAAP financial measures such as Adjusted EBITDA and Adjusted Net Income to evaluate operating performance, which are not calculated in accordance with GAAP[54]. - Tradeweb's Adjusted EBITDA margin is utilized to assess financial performance and highlight trends in core operations, with executive compensation linked to these metrics[55]. - Free Cash Flow is reported to evaluate liquidity, considering cash generated from core operations after non-acquisition related expenditures[58]. - The company presents constant currency change as a non-GAAP measure to assess underlying performance by excluding foreign currency fluctuations[59]. - Tradeweb's financial results are consolidated from its direct and indirect equity interest in Tradeweb Markets LLC, reflecting its substantial financial interest[49]. - The company acknowledges that future results may be affected by unusual or non-recurring items, and non-GAAP measures may not be comparable to those of other companies[61]. Shareholder Information - The company declared a quarterly cash dividend of $0.12 per share, payable on June 16, 2025[24]. - The company reported a total of 214.9 million diluted weighted average shares outstanding for Q1 2025, slightly up from 214.7 million in Q1 2024[42]. - Tradeweb encourages stakeholders to monitor its investor relations website and social media channels for material financial and operational information[63].

Financial Performance Highlights - Tradeweb's revenue reached $509.7 million, a 24.7% year-over-year increase, or 25.8% on a constant currency basis[24] - Adjusted EBITDA margin was 54.6%, an increase of 88 basis points year-over-year, or 79 basis points on a constant currency basis[24] - Adjusted net income was $205.7 million, up 22.5% year-over-year, or 23.3% on a constant currency basis[24] - Adjusted diluted EPS was $0.86, a 21.1% increase year-over-year, or 24.3% on a constant currency basis[24] - International revenues grew by 37.0% year-over-year, or 39.8% on a constant currency basis, reaching $211.8 million[24] Key Growth Metrics - Global Interest Rate Swaps (IRS) average daily volume (ADV) grew by 11% year-over-year[30] - U S Treasuries ADV increased by 22% year-over-year[31] - Global ETFs institutional ADV increased by 20% year-over-year[38] - Money Markets ADV increased by 78% year-over-year[83] U S Credit Market Share - U S Investment Grade credit saw fully electronic share at 18.0% and electronically processed share at 7.9%[34] - U S High Yield credit saw fully electronic share at 7.5% and electronically processed share at 2.6%[36] Expense and Capital Management - Adjusted expenses increased by 21.8%, or 23.0% on a constant currency basis[66] - The company has $1.31 billion in cash and cash equivalents as of March 31, 2025[75]

Core Viewpoint - Tradeweb Markets (TW) is expected to report quarterly earnings of $0.85 per share, reflecting a 19.7% increase year-over-year, with revenues projected at $507.07 million, a 24.1% increase compared to the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate for the quarter has been revised upward by 2.5%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Revenue by Asset Class- Total Variable' to be $378.73 million, marking a 26.6% increase from the year-ago quarter [5]. - The estimate for 'Revenue by Asset Class- Other' is $6.33 million, indicating a year-over-year change of 6.6% [5]. - 'Revenue by Asset Class- Rates- Variable' is expected to reach $194.92 million, reflecting a 26.8% increase from the previous year [5]. - 'Revenue by Asset Class- Rates- Fixed' is estimated at $65.86 million, showing a 9.1% increase year-over-year [6]. Volume Metrics - The average daily volumes for 'Rates - Cash' are projected at $554.53 billion, up from $461.83 billion a year ago [6]. - Total average daily volumes are expected to reach $2,501.84 billion, compared to $1,899.64 billion in the same quarter last year [7]. - 'Average Daily Volumes - Money Markets' is estimated at $997.13 billion, significantly higher than the $576.57 billion reported in the same quarter last year [7]. - 'Average Daily Volumes - Equities' is projected at $28.62 billion, compared to $27.45 billion in the previous year [8]. - 'Average Daily Volumes - Credit' is expected to reach $42.25 billion, up from $34.92 billion a year ago [8]. - 'Average Daily Volumes - Rates' is estimated at $1,434.26 billion, compared to $1,260.7 billion in the same quarter last year [9]. Fee Estimates - Analysts predict 'Average variable fees per million dollars of volume - Equities' to be $16.72, up from $14.68 a year ago [9]. - 'Average variable fees per million dollars of volume - Credit' is expected to reach $45.46, down from $50.39 in the previous year [10]. Stock Performance - Over the past month, Tradeweb shares have recorded a return of -8.1%, compared to a -0.8% change in the Zacks S&P 500 composite [10].

Group 1 - The trading activity on the Tradeweb European ETF marketplace reached an all-time record in total traded volume [2]

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