Tradeweb(US:TW)2025-04-30 11:01Financial 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].