Tradeweb Markets (TW) Q4 2024 earnings summary

Executive summary

• Achieved record annual and quarterly revenues in 2024, with full-year revenue up 29% to $1.73 billion and Q4 revenue up 25.2% to $463 million; average daily volume (ADV) for FY2024 reached $2.25 trillion, up 56% year-over-year.

• Expanded global footprint and client base across 85+ countries, with significant growth in APAC, emerging markets, and through strategic partnerships and leadership appointments.

• Integrated acquisitions of Yieldbroker, r8fin, and ICD, deepening client relationships and expanding into corporate treasury solutions.

• Continued focus on technology innovation, electronification of markets, and multi-asset class expansion, maintaining leadership in electronic fixed income.

• Growth driven by product diversification, innovation, and expansion across asset classes and geographies.

Financial highlights

• FY2024 revenue grew 29% to $1.73 billion; Q4 net income increased 54.2% to $159.9 million; adjusted EBITDA margin reached 53.3% for the year.

• Adjusted Diluted EPS rose 29.2% to $2.92; free cash flow for 2024 was $809 million, up 18.2% year-over-year.

• Net income for FY2024 was $570 million, up from $420 million in FY2023.

• Q4 adjusted EBITDA was $244.7 million, with a margin of 52.8%.

• Ended 2024 with $1.3 billion in cash and an undrawn $500 million credit facility.

Outlook and guidance

• 2025 adjusted expenses expected between $970 million and $1.03 billion, with CapEx and software development guidance of $99–$109 million.

• LSEG Market Data Contract Revenue guidance at $90 million for 2025.

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

• Ongoing investments in technology, data analytics, and ICD integration expected to drive future growth.

• Assumed non-GAAP tax rate of 24.5–25.5%.