Tradeweb Markets (TW) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $448.9 million, up 36.7% year-over-year, driven by strong organic growth, client activity, market share gains, and recent acquisitions including ICD, Yieldbroker, and r8fin.

• Net income rose 16.7% to $130.2 million; adjusted net income increased 37.1% to $179.3 million; adjusted EBITDA margin expanded to 53.4%.

• Expanded global presence, including entry into India and a client base of 2,800+ in 70+ countries, with $2.2 trillion ADV in Q3 2024.

• Recent acquisitions and product launches have expanded reach in Australia, corporates, and technology-driven trading, with integrations ahead of schedule.

• Continued focus on ESG, publishing the fourth annual Corporate Sustainability Report.

Financial highlights

• Q3 2024 revenue: $448.9 million (+36.7% y/y); 9M2024 revenue: $1.26 billion (+30.4% y/y); net income: $130.2 million (+16.7%); adjusted net income: $179.3 million (+37.1%).

• Adjusted EBITDA: $239.8 million (53.4% margin, up 154 bps); adjusted EBIT: $223.9 million (49.9% margin, up 102 bps).

• Free cash flow (TTM): $797.4 million; cash and cash equivalents: $1.2 billion as of September 30, 2024.

• Q3 2024 operating expenses: $289.6 million (+42.2% y/y), mainly due to higher compensation, acquisition-related costs, and technology investment.

• Declared $0.10 per share quarterly dividend; $25.0 million in share repurchases during the quarter; $214.8 million remains authorized.

Outlook and guidance

• Adjusted expenses for full-year 2024 expected at $855–$875 million, trending toward the midpoint.

• CapEx and capitalized software development projected at $77–$85 million for 2024.

• LSEG Market Data Contract Revenue expected at ~$80 million in 2024 and ~$90 million in 2025.

• Management expects continued growth from integration of ICD, r8fin, and Yieldbroker, with cross-selling and international expansion.

• October revenues trending at record levels, up ~30% year-over-year; organic growth at 25%.