Tradeweb Expands Globally and Boosts Dividend After Strong Quarter

Tradeweb Markets Inc TW reported fourth-quarter revenue growth of 26.3% year-on-year to $370.00 million, missing the consensus of $371.46 million. Adjusted EPS of $0.64 was in line with the consensus.

The company clocked revenues of $191.7 million from Rates, up by 32.0% Y/Y. Revenues of $104.3 million from Credit grew 25.0% Y/Y.

Revenues of $26.1 million from Equities increased 13.3% Y/Y. Revenues of $16.6 million from Money Markets rose 24.9% Y/Y.

Revenues of $25.9 million from Market Data climbed 16.2% Y/Y. Other Revenues of $5.4 million marked a decrease of 5.5% Y/Y.

The quarter marked $1.7 trillion average daily volume (“ADV”), an increase of 56.9% Y/Y.

Adjusted Expenses of $189.0 million increased 24.7% Y/Y. The non-acquisition cash capital expenditures and capitalized software development were $12.2 million.

Dividend: The company declared a $0.10 per share quarterly cash dividend, up by 11.1% Y/Y. 

Billy Hult, CEO of Tradeweb: “Tradeweb performed exceptionally well operationally and financially in 2023, a year with no shortage of macro challenges. We invested in growing our international footprint across new geographies and expanded our product offerings through two strategic acquisitions, r8fin and Yieldbroker. Keeping with this growth mindset, we announced a series of new or expanded partnerships with FTSE Russell, LSEG Data & Analytics, and BlackRock.”

FY24 Guidance: The company expects adjusted expenses of $755 million – $805 million. It expects non-acquisition capital expenditures and capitalized software development of $75 million – $83 million.

Tradeweb said it anticipates LSEG Market Data Contract Revenues of ~$80 million in FY24 and ~$90 million in FY25 versus $64.34 million in FY23.

Price Action: TW shares are trading lower by 0.75% at $96.64 on Monday.