Tradeweb(US:TW)2025-07-30 14:32Financial Data and Key Metrics Changes - The company achieved record revenues of $513 million, representing a 26.7% year-over-year increase on a reported basis and a 24.7% increase on a constant currency basis [26][28] - Adjusted EBITDA margin increased by 83 basis points to 54.2% compared to the previous year [28] - Free cash flow reached approximately $952 million for the trailing twelve months [35] Business Line Data and Key Metrics Changes - The rates business produced record revenue driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenues increased significantly, with double-digit growth in credit derivatives and municipal bonds [15] - Equities revenue grew by 50% year-over-year, led by the global ETF and equity derivatives business [8] - Money markets revenue growth was supported by the addition of ICD and record quarterly revenues across global repos [8] Market Data and Key Metrics Changes - International business revenue grew by 41% year-over-year, with strong performance in emerging markets (EM) and Asia-Pacific (APAC) [7][21] - U.S. Treasury market share declined to 22% year-over-year, attributed to a shift towards voice-centric trades [12] - Global swaps revenues grew over 45% year-over-year, with international swaps achieving record revenues growing over 55% [21][23] Company Strategy and Development Direction - The company is focused on expanding its electronic trading capabilities and enhancing client engagement through innovative solutions [6][39] - Continued investment in digital assets and emerging markets credit is a strategic priority [20][36] - The company aims to deepen penetration in the U.S. credit market while expanding its international footprint [20][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth for 2025, driven by strong client engagement and market dynamics [5][35] - The company noted that recent market volatility has reinforced the value of electronic trading [24] - Management highlighted the importance of adapting to client needs and enhancing trading workflows [39][55] Other Important Information - The company declared a quarterly dividend of $0.12 per Class A and Class B shares, up 20% year-over-year [35] - Adjusted expenses increased by 24% on a reported basis, reflecting investments in technology and client relationship development [32] Q&A Session Summary Question: Market share trends in U.S. Treasuries - Management acknowledged a decline in market share due to a shift towards voice trading and highlighted efforts to address this through innovative protocols [43][49] Question: Client reaction to new buy-side fees in high yield - Management reported an increase in institutional high yield share post-implementation of buy-side fees, indicating positive client reception [61][64] Question: Progress in cross-selling additional products through ICD - Management noted high client retention and modest revenue growth, with ongoing efforts to expand product offerings and client reach [72][80] Question: Fee per million dynamics in the rates business - Management expressed optimism about maintaining or modestly growing fee per million in swaps, driven by higher-priced products and protocols [84][86] Question: Growth opportunities in international markets - Management highlighted strong growth in international revenue, particularly in Europe and Asia, with a focus on expanding product offerings [96][100] Question: Impact of stablecoins and digital assets on the market - Management is bullish on digital assets and sees stablecoins as potential game changers, exploring tokenized versions based on client demand [107]