Tradeweb Markets (TW) Tops Q4 EPS by 1c, Revenues Beat

Tradeweb Markets (NASDAQ: TW) reported Q4 EPS of $0.26, $0.01 better than the analyst estimate of $0.25. Revenue for the quarter came in at $197.3 million versus the consensus estimate of $195.94 million.

FOURTH QUARTER 2019

• Average daily volume (ADV) of $684.6 billion for the quarter increased 16.3%
• Record quarterly ADV in US high-grade and high-yield credit; record market share for US high-grade TRACE volume of 15.8% and fully-electronic US high-grade TRACE volume of 7.3%
• Revenues of $197.3 million increased 10.5% (11.7% on a constant currency basis)
• Net income of $57.3 million for the quarter compared to $29.3 million for the prior year period
• Adjusted EBITDA margin of 46.9% for the quarter compared to 36.6% for the prior year period
• Declared quarterly cash dividend of $0.08 per share

Lee Olesky, Chief Executive Officer of Tradeweb Markets, said, “A strong fourth quarter contributed to another record year at Tradeweb. The resulting revenue growth, margin expansion and free cash flow generation underscore the power of Tradeweb’s model. Adoption of electronic trading is accelerating as market participants gain a deeper appreciation for the functionality, efficiencies, data and analytics it delivers. Record full-year average daily volume of $725 billion in 2019 demonstrates the extent to which innovation is driving Tradeweb’s growth within an expanding market. We’re excited about the opportunity ahead and remain focused on driving greater connectivity across the global markets and broad client network we serve.”

Full-Year 2020 Guidance

• Adjusted expenses of $495 - $510 million
  • Includes approximately $5 million of new investments, primarily in data strategy and cybersecurity
  • Includes approximately $3 million of duplicative rent expense
• Assumed non-GAAP tax rate of 22.0%
• Capital expenditures and capitalization of software of $45 - $50 million
• Acquisition and Refinitiv Transaction related depreciation and amortization expense of $110 million

For earnings history and earnings-related data on Tradeweb Markets (TW) click here.

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