Tradeweb pulls in $408.7 million in Q1 revenue

Tradeweb Markets Inc. (NASDAQ: TW) has just announced its financial results for the first quarter of 2024, which showed a robust performance for the three months through March.

The company pulled in $408.7 million in revenue, marking a 24.1% increase from last year, though it fell slightly short of the $411.33 million analysts were expecting. But the standout number was the average daily trading volume, which soared to a record $1.9 trillion—a 39.1% jump from the previous year.

Net income also saw a notable increase, reaching $143.4 million, up 40.3% from last year, and earnings per share (EPS) hit the mark with an adjusted diluted EPS of $0.71, exactly in line with estimates.

On the operational front, Tradeweb’s adjusted EBITDA climbed to $219.5 million, with margins expanding to 53.7% from 52.3% the previous year. The company also declared a quarterly cash dividend of $0.10 per share, payable on June 17, 2024.

In terms of growth initiatives, Tradeweb completed the acquisition of r8fin and announced an upcoming acquisition of ICD for $785 million, which is expected to close in the second half of 2024.

Billy Hult, CEO of Tradeweb, highlighted the company’s broad-based growth and its success across multiple asset classes. He added that Tradeweb is keeping its focus sharp on innovation and expanding its multi-asset class trading solutions to stay competitive in the global financial markets.

Looking ahead, Tradeweb plans to keep investing in technology and strategic initiatives, with its adjusted expenses for 2024 expected to be at the higher end of the $755 – $805 million range.

Tradeweb is set to expand its scope in the fixed income trading arena by incorporating an algorithmic technology provider into its network through the acquisition of r8fin. The latter focuses on US treasuries and interest rate futures, catering to a clientele comprising hedge funds, systematic hedge funds, professional trading firms, and primary dealers.

This acquisition follows Tradeweb’s recent purchase of Yieldbroker for A$125 million, which was announced in May and finalized in August. This move aligns with the venue’s overarching strategy for growth through strategic acquisitions in the market.