Tradeweb(US:TW)2025-02-06 11:06Financial Performance - Tradeweb reported Q4 2024 revenues of $463.3 million, a 25.2% increase year-over-year, with a 25.5% increase on a constant currency basis[2]. - Net income for Q4 2024 was $159.9 million, a 54.2% increase from the prior year, while adjusted net income rose 19.2% to $181.2 million[2]. - For the full year 2024, total revenues increased 29.0% to $1.7 billion, driven by ADV exceeding $2.2 trillion and record activity across multiple asset classes[16]. - Full year net income rose 35.9% to $570.0 million, with diluted EPS increasing 36.3% to $2.33[16]. - Total revenue for Q4 2024 was $463.3 million, up 25.2% from $370.0 million in Q4 2023[24]. - Adjusted EBITDA for the year ended December 31, 2024, was $920.6 million, with an adjusted EBITDA margin of 53.3%[25]. - The company reported a diluted EPS of $2.33 for the year ended December 31, 2024, up from $1.71 in 2023, representing a 36.3% increase[39]. - Adjusted net income for the year ended December 31, 2024, was $695,151,000, representing a 30% increase from $535,515,000 in 2023[31]. Volume and Activity - Average daily volume (ADV) for Q4 2024 was $2.3 trillion, up 36.7% compared to the prior year, with record ADV in U.S. government bonds, mortgages, and global repurchase agreements[2]. - Tradeweb facilitated more than $2.2 trillion in notional value traded per day over the past four fiscal quarters[23]. - The ADV for U.S. Government Bonds rose by 38.56% year-over-year, from $162,335 million in Q4 2023 to $224,928 million in Q4 2024[44]. - The ADV for Money Markets surged by 82.52% year-over-year, increasing from $541,367 million in Q4 2023 to $988,081 million in Q4 2024[44]. - The total ADV for Credit transactions increased by 13.29% year-over-year, from $24,154 million in Q4 2023 to $27,364 million in Q4 2024[44]. Expenses and Cash Flow - Operating expenses for the year ended December 31, 2024, were $1,047,921,000, up from $832,950,000 in 2023, indicating a 26% increase[34]. - Free cash flow for the year ended December 31, 2024, was $808,872,000, compared to $684,325,000 in 2023, marking an increase of 18.2%[38]. - Cash capital expenditures and capitalized software development for 2024 were approximately $99 - 109 million[20]. Dividends and Shareholder Returns - Tradeweb declared a quarterly cash dividend of $0.12 per share, reflecting a 20.0% increase from the prior year[2]. - Tradeweb purchased a total of 478,915 shares of Class A common stock in 2024, totaling $59.9 million[20]. Strategic Partnerships and Acquisitions - The company established key partnerships, including becoming the first strategic partner to Goldman Sachs for its GS DAP technology platform[4]. - The company completed acquisitions of Yieldbroker, r8fin, and ICD in 2023 and 2024, contributing to the reported volumes[44]. - The U.S. Securities and Exchange Commission approved Tradeweb's swap execution facility as a security-based swap execution facility under new regulations[17]. Market Data and Fees - Tradeweb's Money Markets segment saw revenues increase by 166.5% in Q4 2024, primarily due to the acquisition of ICD and record ADV in global repurchase agreements[11]. - Average variable fees per million dollars of volume for Rates increased by 14.5% year-over-year, reaching $2.23 in Q4 2024 compared to $1.95 in Q4 2023[42]. - The average variable fees for Money Markets increased by 54.8% year-over-year, from $0.37 to $0.57 per million dollars of volume[42]. - The total average variable fees, excluding Other Rates Derivatives, decreased by 10.7% year-over-year, from $2.91 to $2.60 per million dollars of volume[42]. Management and Governance - The company appointed Enrico Bruni and Troy Dixon as Co-Heads of Global Markets, effective January 2025[20]. - Tradeweb utilizes various sources, including industry reports and client surveys, to prepare market and industry data estimates[59]. - The company emphasizes the importance of monitoring its investor relations website and social media channels for material financial and operational information[60].