Tradeweb Markets (TW) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly and annual revenues in 2024, with full-year revenue up 29% to $1.73 billion and Q4 revenue up 25.2% year-over-year to $463 million; average daily volume (ADV) reached $2.25 trillion, a 56% increase from FY2023.

• Expanded global footprint and client base across 85+ countries, with significant growth in emerging markets and APAC, and over 3,000 clients.

• Integrated acquisitions (Yieldbroker, r8fin, ICD) and deepened partnerships (BlackRock Aladdin, FTSE, Goldman Sachs, Tokyo Stock Exchange, Securitize).

• Technology investment exceeded $780 million over nine years, supporting innovation, product diversification, and margin expansion.

• Achieved 25th consecutive year of record annual revenues, with strong Q4 performance and favorable market conditions.

Financial highlights

• FY2024 revenue grew 29% to $1.73 billion; Q4 revenue was $463.3 million, up 25.2% year-over-year.

• Adjusted EBITDA margin reached 53.3% in 2024, up 91 basis points year-over-year; adjusted EBITDA was $921 million.

• Adjusted EPS grew 29% to $2.92; free cash flow reached $809 million for the trailing 12 months.

• Q4 net income increased 54.2% to $159.9 million; adjusted net income up 19.2% to $181.2 million.

• Declared quarterly dividend of $0.12 per share, up 20% year-over-year; $1.3 billion in cash at year-end.

Outlook and guidance

• 2025 adjusted expenses expected between $970 million–$1.03 billion, midpoint up 15% year-over-year; non-GAAP tax rate of 24.5%–25.5%.

• CapEx guidance: $99–$109 million, up 17% year-over-year, split between software and growth/maintenance.

• LSEG data agreement revenue expected at $90 million in 2025.

• Management targets continued revenue and margin growth, focusing on U.S. Treasuries, global swaps, credit, and ETFs.

• ICD integration and cross-sell opportunities anticipated to expand corporate client footprint in 2025.