Tradeweb(US:TW)2021-08-01 14:46Financial Data and Key Metrics Changes - The company reported GAAP earnings per diluted share of $0.27, with adjusted net income per diluted share of $0.39, reflecting a strong performance [7][54]. - Gross revenues reached $261 million, up 23% year-on-year, and adjusted EBITDA margin expanded by 280 basis points to 50.6% [11][54]. - Average daily volume was $976 billion, an increase of nearly 26% year-over-year [50]. Business Line Data and Key Metrics Changes - U.S. Credit and global swaps were significant growth drivers, with credit revenues exceeding $72 million and swaps volumes growing by 23% [12][25][41]. - Cash rates revenues were strong due to healthy central bank issuance, while mortgage revenue growth was flat due to subdued volatility [14]. - Equities revenue growth was driven by European institutional ETFs, with average daily volume up 29% year-on-year [26]. Market Data and Key Metrics Changes - The company achieved record market share in swaps at 14.7% and in U.S. Treasuries at 16.5% [17][19]. - The electronic IG credit market share remained stable, while electronic high yield credit share showed notable strength [76]. Company Strategy and Development Direction - The company is focused on driving electronification and automation in trading, with ongoing investments in technology and potential M&A opportunities [75]. - The integration of the Nasdaq U.S. fixed income acquisition is proceeding as planned, aiming to enhance competition in the central limit order book space [22][75]. - The company is committed to innovating across products and protocols to capture market share in a low volatility environment [41][74]. Management's Comments on Operating Environment and Future Outlook - Management noted that the operating market remains subdued, with low credit volatility and low rates not supportive, but they are optimistic about long-term growth potential [74]. - The company is experiencing strong momentum in trading volumes, with overall volumes up double digits compared to July 2020 [76]. - Management emphasized the importance of having a diverse set of tools to adapt to various market conditions [120]. Other Important Information - The company ended the quarter with $680 million in cash and cash equivalents, and free cash flow reached $434 million for the trailing 12 months [69]. - The board declared a quarterly dividend of $0.08 per Class A and Class B share [70]. Q&A Session Summary Question: Insights on eSpeed acquisition and market share opportunities - Management expressed excitement about the eSpeed acquisition, highlighting strong client relationships and the potential for significant growth in the central limit order book space [82][84]. Question: Portfolio trading's impact on market share - Management confirmed that portfolio trading is a significant driver of credit market share, with ongoing innovations to enhance its effectiveness [91][95]. Question: Durability of credit trading in different environments - Management discussed the importance of having a variety of protocols to adapt to market volatility, emphasizing the need for continuous innovation [120][125]. Question: Capital management and M&A opportunities - Management highlighted the company's strong cash position and ongoing evaluation of M&A opportunities to enhance growth and market penetration [129].