Tradeweb Markets (TW) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly and annual revenues in 2024, with Q4 revenue up 25.2% year-over-year to $463 million and full-year revenue reaching $1.73 billion, a 29% increase, marking the 25th consecutive year of record annual revenues.

• Expanded global footprint and client base across rates, credit, money markets, and equities, with significant growth in emerging markets, APAC, and over 85 countries.

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

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

• Leadership strengthened with new Co-Heads of Global Markets and expanded strategic collaborations.

Financial highlights

• FY2024 revenue reached $1.73 billion, up 29% year-over-year; Q4 revenue was $463 million, up 25.2% year-over-year.

• Adjusted EBITDA margin for 2024: 53.3%, up 91 basis points year-over-year; Q4 adjusted EBITDA margin was 52.8%.

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

• Net income for FY2024 was $570 million, up from $420 million in FY2023; Q4 net income increased 54.2% to $159.9 million.

• Declared quarterly dividend of $0.12 per share, up 20% year-over-year; ended 2024 with $1.3 billion in cash.

Outlook and guidance

• 2025 adjusted expenses expected between $970 million–$1.03 billion, midpoint up 15% year-over-year; capex guidance: $99–$109 million, up 17% year-over-year.

• Excluding acquisitions, expense growth at midpoint is 11% year-over-year.

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

• Continued investment in credit, rates, emerging markets, ICD, and technology; expecting further margin expansion, though at a more muted pace.

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