Delaware |
001-38860 | 83-2456358 |
||||||
(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
||||||
1177 Avenue of the Americas
New York, New York
|
10036 |
|||||||
(Address of Principal Executive Offices) |
(Zip Code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
||||||||||||
Class A common stock, par value $0.00001 | TW | Nasdaq Global Select Market |
Exhibit Number |
Exhibit Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
TRADEWEB MARKETS INC. | |||||||||||
Date: July 25, 2024 |
By: | /s/ Douglas Friedman | |||||||||
Name: Douglas Friedman | |||||||||||
Title: General Counsel |
Investor Relations
Ashley Serrao + 1 646 430 6027
Ashley.Serrao@Tradeweb.com
|
Media Relations
Daniel Noonan + 1 646 767 4677
Daniel.Noonan@Tradeweb.com
|
|||||||||||||
TRADEWEB REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS |
||||||||||||||||||||||||||||||||||||||||||||
New York, July 25, 2024 – Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the quarter ended June 30, 2024. |
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$405.0 million quarterly revenues, an increase of 30.4% (30.8% on a constant currency basis) compared to prior year period
$1.9 trillion average daily volume (“ADV”) for the quarter, an increase of 48.3% compared to prior year period; quarterly ADV records in U.S. government bonds, fully electronic U.S. high yield credit and global repurchase agreements; record 18.8% share of fully electronic U.S. high grade TRACE
$136.4 million net income and $166.7 million adjusted net income for the quarter, increases of 33.8% and 34.7% respectively from prior year period
53.5% adjusted EBITDA margin and $216.5 million adjusted EBITDA for the quarter, compared to 52.5% and $163.1 million respectively for prior year period
$0.55 diluted earnings per share (“Diluted EPS”) and $0.70 adjusted diluted earnings per share for the quarter
$0.10 per share quarterly cash dividend declared
|
Billy Hult, CEO of Tradeweb:
"We delivered strong organic growth complemented by continued investment in our multi-asset class, global business, resulting in a 30.4% revenue increase year-over-year in Q2 2024. Tradeweb set quarterly ADV records in rates, money markets, and credit – where we also captured a record 18.8% share of fully electronic U.S. high grade TRACE. Markets continue to become increasingly interconnected, and our technology is helping to make that possible. Tradeweb recently became the first electronic trading platform to connect repo and IRS markets, and we expanded our partnership with FTSE Russell to produce benchmark U.S. treasury closing prices. In Q2 2024, we agreed to acquire ICD, an institutional investment technology provider for corporate treasury organizations, which would introduce Corporates as our fourth client channel. We also made a minority investment in Securitize, a leader in tokenizing real-world assets, and entered into a commercial agreement with blockchain infrastructure provider Alphaledger, reflecting our continued efforts to strategically place bets on technology that helps to advance our business. I'm proud of our strides this quarter and look forward to continually identifying new opportunities for our long-term growth."
|
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SELECT FINANCIAL RESULTS |
2Q24 | 2Q23 | Change |
Constant
Currency
Change(1)
|
ADV (US $bn)
(Unaudited)
|
|||||||||||||||||||||||||||||||||||||||
(dollars in thousands except per share amounts)(Unaudited) | Asset Class | Product | 2Q24 | 2Q23 | YoY | |||||||||||||||||||||||||||||||||||||||
GAAP Financial Measures | Rates | Cash | $ | 462 | $ | 345 | 34.1 | % | ||||||||||||||||||||||||||||||||||||
Total revenue | $ | 404,951 | $ | 310,613 | 30.4 | % | 30.8 | % | Derivatives | 787 | 429 | 83.4 | % | |||||||||||||||||||||||||||||||
Rates | $ | 217,531 | $ | 160,354 | 35.7 | % | 36.4 | % | Total | 1,249 | 774 | 61.4 | % | |||||||||||||||||||||||||||||||
Credit | $ | 111,324 | $ | 84,048 | 32.5 | % | 32.6 | % | Credit | Cash | 17 | 11 | 58.5 | % | ||||||||||||||||||||||||||||||
Equities | $ | 22,871 | $ | 22,146 | 3.3 | % | 3.8 | % | Derivatives | 13 | 8 | 53.8 | % | |||||||||||||||||||||||||||||||
Money Markets | $ | 18,045 | $ | 15,834 | 14.0 | % | 14.2 | % | Total | 30 | 19 | 56.5 | % | |||||||||||||||||||||||||||||||
Market Data | $ | 29,227 | $ | 22,776 | 28.3 | % | 28.4 | % | Equities | Cash | 10 | 10 | 0.2 | % | ||||||||||||||||||||||||||||||
Other | $ | 5,953 | $ | 5,455 | 9.1 | % | 9.2 | % | Derivatives | 11 | 9 | 19.9 | % | |||||||||||||||||||||||||||||||
Net income | $ | 136,416 | $ | 101,939 | 33.8 | % | Total | 21 | 19 | 9.8 | % | |||||||||||||||||||||||||||||||||
Net income attributable to Tradeweb Markets Inc. (2) |
$ | 119,239 | $ | 89,082 | 33.9 | % | Money Markets | Cash | 622 | 484 | 28.4 | % | ||||||||||||||||||||||||||||||||
Total | 622 | 484 | 28.4 | % | ||||||||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 0.55 | $ | 0.42 | 31.0 | % | Total | $ | 1,922 | $ | 1,297 | 48.3 | % | |||||||||||||||||||||||||||||||
Net income margin | 33.7 | % | 32.8 | % | +87 | bps | ||||||||||||||||||||||||||||||||||||||
Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (1) |
$ | 216,533 | $ | 163,055 | 32.8 | % | 32.6 | % |
(1) Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Diluted EPS and constant currency change are non-GAAP financial measures. See "Non-GAAP Financial Measures" below and the attached schedules for additional information and reconciliations of such non-GAAP financial measures.
(2) Represents net income less net income attributable to non-controlling interests.
|
|||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin (1) |
53.5 | % | 52.5 | % | +98 | bps | +70 | bps | ||||||||||||||||||||||||||||||||||||
Adjusted EBIT (1) |
$ | 201,312 | $ | 148,797 | 35.3 | % | 35.0 | % | ||||||||||||||||||||||||||||||||||||
Adjusted EBIT margin (1) |
49.7 | % | 47.9 | % | +181 | bps | +154 | bps | ||||||||||||||||||||||||||||||||||||
Adjusted Net Income (1) |
$ | 166,711 | $ | 123,749 | 34.7 | % | 34.5 | % | ||||||||||||||||||||||||||||||||||||
Adjusted Diluted EPS (1) |
$ | 0.70 | $ | 0.52 | 34.6 | % | 34.6 | % | ||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Revenues | (dollars in thousands, except per share amounts) | |||||||||||||||||||||||||
Transaction fees and commissions | $ | 330,475 | $ | 246,461 | $ | 665,926 | $ | 513,059 | ||||||||||||||||||
Subscription fees | 50,746 | 45,748 | 100,427 | 90,122 | ||||||||||||||||||||||
LSEG market data fees | 20,581 | 15,461 | 41,081 | 31,055 | ||||||||||||||||||||||
Other | 3,149 | 2,943 | 6,256 | 5,626 | ||||||||||||||||||||||
Total revenue | 404,951 | 310,613 | 813,690 | 639,862 | ||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Employee compensation and benefits | 137,236 | 103,924 | 280,323 | 218,417 | ||||||||||||||||||||||
Depreciation and amortization | 49,936 | 45,887 | 99,273 | 91,291 | ||||||||||||||||||||||
Technology and communications | 24,230 | 18,701 | 45,540 | 36,268 | ||||||||||||||||||||||
General and administrative | 12,755 | 11,072 | 23,609 | 24,992 | ||||||||||||||||||||||
Professional fees | 13,324 | 10,666 | 25,124 | 21,842 | ||||||||||||||||||||||
Occupancy | 4,976 | 4,028 | 9,649 | 8,151 | ||||||||||||||||||||||
Total expenses | 242,457 | 194,278 | 483,518 | 400,961 | ||||||||||||||||||||||
Operating income | 162,494 | 116,335 | 330,172 | 238,901 | ||||||||||||||||||||||
Interest income | 21,511 | 15,576 | 42,571 | 28,516 | ||||||||||||||||||||||
Interest expense | (542) | (467) | (2,260) | (916) | ||||||||||||||||||||||
Other income (loss), net | — | (456) | — | (115) | ||||||||||||||||||||||
Income before taxes | 183,463 | 130,988 | 370,483 | 266,386 | ||||||||||||||||||||||
Provision for income taxes | (47,047) | (29,049) | (90,685) | (62,254) | ||||||||||||||||||||||
Net income | 136,416 | 101,939 | 279,798 | 204,132 | ||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | 17,177 | 12,857 | 34,417 | 27,194 | ||||||||||||||||||||||
Net income attributable to Tradeweb Markets Inc. | $ | 119,239 | $ | 89,082 | $ | 245,381 | $ | 176,938 | ||||||||||||||||||
Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders: | ||||||||||||||||||||||||||
Basic | $ | 0.56 | $ | 0.42 | $ | 1.15 | $ | 0.84 | ||||||||||||||||||
Diluted | $ | 0.55 | $ | 0.42 | $ | 1.14 | $ | 0.83 | ||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||
Basic | 213,162,158 | 211,569,728 | 212,936,015 | 209,847,153 | ||||||||||||||||||||||
Diluted | 214,895,947 | 213,156,753 | 214,778,342 | 211,659,814 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted EBIT Margin | June 30, | June 30, | ||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Net income |
$ | 136,416 | $ | 101,939 | $ | 279,798 | $ | 204,132 | ||||||||||||||||||
Merger and acquisition transaction and integration costs (1) |
3,650 | 1,212 | 7,264 | 1,797 | ||||||||||||||||||||||
Interest income |
(21,511) | (15,576) | (42,571) | (28,516) | ||||||||||||||||||||||
Interest expense | 542 | 467 | 2,260 | 916 | ||||||||||||||||||||||
Depreciation and amortization |
49,936 | 45,887 | 99,273 | 91,291 | ||||||||||||||||||||||
Stock-based compensation expense (2) |
531 | 585 | 1,714 | 1,435 | ||||||||||||||||||||||
Provision for income taxes |
47,047 | 29,049 | 90,685 | 62,254 | ||||||||||||||||||||||
Foreign exchange (gains) / losses (3) |
(78) | (964) | (2,362) | 1,834 | ||||||||||||||||||||||
Tax receivable agreement liability adjustment (4) |
— | — | — | — | ||||||||||||||||||||||
Other (income) loss, net |
— | 456 | — | 115 | ||||||||||||||||||||||
Adjusted EBITDA |
$ | 216,533 | $ | 163,055 | $ | 436,061 | $ | 335,258 | ||||||||||||||||||
Less: Depreciation and amortization |
(49,936) | (45,887) | (99,273) | (91,291) | ||||||||||||||||||||||
Add: D&A related to acquisitions and the Refinitiv Transaction (5) |
34,715 | 31,629 | 69,082 | 63,246 | ||||||||||||||||||||||
Adjusted EBIT |
$ | 201,312 | $ | 148,797 | $ | 405,870 | $ | 307,213 | ||||||||||||||||||
Net income margin (6) |
33.7 | % | 32.8 | % | 34.4 | % | 31.9 | % | ||||||||||||||||||
Adjusted EBITDA margin (6) |
53.5 | % | 52.5 | % | 53.6 | % | 52.4 | % | ||||||||||||||||||
Adjusted EBIT margin (6) |
49.7 | % | 47.9 | % | 49.9 | % | 48.0 | % |
(1) |
Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration. | ||||
(2) | Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2024, this adjustment also includes $0.3 million of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our departing President. |
||||
(3) | Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity’s functional currency. |
||||
(4) | Represents income recognized during the applicable period due to changes in the tax receivable agreement liability recorded in the consolidated statement of financial condition as a result of changes in the mix of earnings, tax legislation and tax rates in various jurisdictions which impacted our tax savings. |
||||
(5) | Represents intangible asset and acquired software amortization resulting from acquisitions and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction). |
||||
(6) | Net income margin, Adjusted EBITDA margin and Adjusted EBIT margin are defined as net income, Adjusted EBITDA and Adjusted EBIT, respectively, divided by revenue for the applicable period. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS | June 30, | June 30, | ||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||
Earnings per diluted share |
$ | 0.55 | $ | 0.42 | $ | 1.14 | $ | 0.83 | ||||||||||||||||||
Net income attributable to Tradeweb Markets Inc. |
$ | 119,239 | $ | 89,082 | $ | 245,381 | $ | 176,938 | ||||||||||||||||||
Net income attributable to non-controlling interests (1) |
17,177 | 12,857 | 34,417 | 27,194 | ||||||||||||||||||||||
Net income |
136,416 | 101,939 | 279,798 | 204,132 | ||||||||||||||||||||||
Provision for income taxes |
47,047 | 29,049 | 90,685 | 62,254 | ||||||||||||||||||||||
Merger and acquisition transaction and integration costs (2) |
3,650 | 1,212 | 7,264 | 1,797 | ||||||||||||||||||||||
D&A related to acquisitions and the Refinitiv Transaction (3) |
34,715 | 31,629 | 69,082 | 63,246 | ||||||||||||||||||||||
Stock-based compensation expense (4) |
531 | 585 | 1,714 | 1,435 | ||||||||||||||||||||||
Foreign exchange (gains) / losses (5) |
(78) | (964) | (2,362) | 1,834 | ||||||||||||||||||||||
Tax receivable agreement liability adjustment (6) |
— | — | — | — | ||||||||||||||||||||||
Other (income) loss, net |
— | 456 | — | 115 | ||||||||||||||||||||||
Adjusted Net Income before income taxes |
222,281 | 163,906 | 446,181 | 334,813 | ||||||||||||||||||||||
Adjusted income taxes (7) |
(55,570) | (40,157) | (111,545) | (82,029) | ||||||||||||||||||||||
Adjusted Net Income |
$ | 166,711 | $ | 123,749 | $ | 334,636 | $ | 252,784 | ||||||||||||||||||
Adjusted Diluted EPS (8) |
$ | 0.70 | $ | 0.52 | $ | 1.41 | $ | 1.07 |
(1) |
Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock. |
||||
(2) | Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration. | ||||
(3) | Represents intangible asset and acquired software amortization resulting from acquisitions and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction). |
||||
(4) | Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2024, this adjustment also includes $0.3 million of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our departing President. |
||||
(5) | Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity’s functional currency. |
||||
(6) | Represents income recognized during the applicable period due to changes in the tax receivable agreement liability recorded in the consolidated statement of financial condition as a result of changes in the mix of earnings, tax legislation and tax rates in various jurisdictions which impacted our tax savings. |
||||
(7) | Represents corporate income taxes at an assumed effective tax rate of 25.0% applied to Adjusted Net Income before income taxes for the three and six months ended June 30, 2024 and 24.5% for the three and six months ended June 30, 2023. |
||||
(8) | For a summary of the calculation of Adjusted Diluted EPS, see “Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding and Adjusted Diluted EPS” below. |
Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding and Adjusted Diluted EPS | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Diluted weighted average shares of Class A and Class B common stock outstanding |
214,895,947 | 213,156,753 | 214,778,342 | 211,659,814 | ||||||||||||||||||||||
Weighted average of other participating securities (1) |
125,012 | 241,963 | 142,484 | 266,790 | ||||||||||||||||||||||
Assumed exchange of LLC Interests for shares of Class A or Class B common stock (2) |
23,077,698 | 23,153,250 | 23,077,836 | 24,738,197 | ||||||||||||||||||||||
Adjusted diluted weighted average shares outstanding |
238,098,657 | 236,551,966 | 237,998,662 | 236,664,801 | ||||||||||||||||||||||
Adjusted Net Income (in thousands) |
$ | 166,711 | $ | 123,749 | $ | 334,636 | $ | 252,784 | ||||||||||||||||||
Adjusted Diluted EPS |
$ | 0.70 | $ | 0.52 | $ | 1.41 | $ | 1.07 |
(1) |
Represents weighted average unvested restricted stock units and unsettled vested performance-based restricted stock units issued to certain retired or terminated employees that are entitled to non-forfeitable dividend equivalent rights and are considered participating securities prior to being issued and outstanding shares of common stock in accordance with the two-class method used for purposes of calculating earnings per share. |
||||
(2) | Assumes the full exchange of the weighted average of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock, resulting in the elimination of the non-controlling interests and recognition of the net income attributable to non-controlling interests. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Reconciliation of Operating Expenses to Adjusted Expenses | June 30, | June 30, | ||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Operating expenses |
$ | 242,457 | $ | 194,278 | $ | 483,518 | $ | 400,961 | ||||||||||||||||||
Merger and acquisition transaction and integration costs (1) |
(3,650) | (1,212) | (7,264) | (1,797) | ||||||||||||||||||||||
D&A related to acquisitions and the Refinitiv Transaction (2) |
(34,715) | (31,629) | (69,082) | (63,246) | ||||||||||||||||||||||
Stock-based compensation expense (3) |
(531) | (585) | (1,714) | (1,435) | ||||||||||||||||||||||
Foreign exchange gains / (losses) (4) |
78 | 964 | 2,362 | (1,834) | ||||||||||||||||||||||
Adjusted Expenses |
$ | 203,639 | $ | 161,816 | $ | 407,820 | $ | 332,649 |
(1) |
Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration. | ||||
(2) | Represents intangible asset and acquired software amortization resulting from acquisitions and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction). |
||||
(3) | Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2024, this adjustment also includes $0.3 million of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our departing President. |
||||
(4) | Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity’s functional currency. |
Trailing Twelve Months Ended June 30, |
||||||||||||||
Reconciliation of Cash Flow from Operating Activities to Free Cash Flow | 2024 | 2023 | ||||||||||||
(dollars in thousands) | ||||||||||||||
Cash flow from operating activities | $ | 785,734 | $ | 693,446 | ||||||||||
Less: Capitalization of software development costs | (45,208) | (39,123) | ||||||||||||
Less: Purchases of furniture, equipment and leasehold improvements | (18,780) | (19,557) | ||||||||||||
Free Cash Flow | $ | 721,746 | $ | 634,766 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
EPS: Net income attributable to Tradeweb Markets Inc. | June 30, | June 30, | ||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net income attributable to Tradeweb Markets Inc. | $ | 119,239 | $ | 89,082 | $ | 245,381 | $ | 176,938 | ||||||||||||||||||
Less: Distributed and undistributed earnings allocated to unvested RSUs and unsettled vested PRSUs (1) |
(70) | (102) | (164) | (225) | ||||||||||||||||||||||
Net income attributable to outstanding shares of Class A and Class B common stock - Basic and Diluted |
$ | 119,169 | $ | 88,980 | $ | 245,217 | $ | 176,713 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average shares of Class A and Class B common stock outstanding - Basic | 213,162,158 | 211,569,728 | 212,936,015 | 209,847,153 | ||||||||||||||||||||||
Dilutive effect of PRSUs | 568,304 | 350,713 | 534,583 | 318,638 | ||||||||||||||||||||||
Dilutive effect of options | 449,252 | 1,143,376 | 524,413 | 1,306,297 | ||||||||||||||||||||||
Dilutive effect of RSUs | 252,498 | 92,936 | 348,282 | 187,726 | ||||||||||||||||||||||
Dilutive effect of PSUs | 463,735 | — | 435,049 | — | ||||||||||||||||||||||
Weighted average shares of Class A and Class B common stock outstanding - Diluted | 214,895,947 | 213,156,753 | 214,778,342 | 211,659,814 | ||||||||||||||||||||||
Earnings per share - Basic | $ | 0.56 | $ | 0.42 | $ | 1.15 | $ | 0.84 | ||||||||||||||||||
Earnings per share - Diluted | $ | 0.55 | $ | 0.42 | $ | 1.14 | $ | 0.83 | ||||||||||||||||||
(1) |
During the three months ended June 30, 2024 and 2023, there was a total of 125,012 and 241,963, respectively, and during the six months ended June 30, 2024 and 2023 , there was a total of 142,484 and 266,790, respectively, weighted average unvested RSUs and unsettled vested PRSUs that were considered a participating security for purposes of calculating earnings per share in accordance with the two-class method. |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Variable | Fixed | Variable | Fixed | Variable | Fixed | Variable | Fixed | ||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rates | $ | 157,636 | $ | 59,895 | $ | 101,588 | $ | 58,766 | $ | 56,048 | $ | 1,129 | 55.2 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||
Credit | 102,785 | 8,539 | 77,334 | 6,714 | 25,451 | 1,825 | 32.9 | % | 27.2 | % | ||||||||||||||||||||||||||||||||||||||||
Equities | 20,602 | 2,269 | 19,866 | 2,280 | 736 | (11) | 3.7 | % | (0.5) | % | ||||||||||||||||||||||||||||||||||||||||
Money Markets | 13,695 | 4,350 | 11,535 | 4,299 | 2,160 | 51 | 18.7 | % | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||
Market Data | 132 | 29,095 | 45 | 22,731 | 87 | 6,364 | 193.3 | % | 28.0 | % | ||||||||||||||||||||||||||||||||||||||||
Other | — | 5,953 | — | 5,455 | — | 498 | — | 9.1 | % | |||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 294,850 | $ | 110,101 | $ | 210,368 | $ | 100,245 | $ | 84,482 | $ | 9,856 | 40.2 | % | 9.8 | % |
Three Months Ended | ||||||||||||||||||||
June 30, | YoY | |||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||
Rates | $ | 2.00 | $ | 2.10 | (4.8) | % | ||||||||||||||
Rates Cash | $ | 2.54 | $ | 2.44 | 4.1 | % | ||||||||||||||
Rates Derivatives | $ | 1.69 | $ | 1.83 | (7.9) | % | ||||||||||||||
Rates Derivatives (greater than 1 year) |
$ | 2.71 | $ | 2.75 | (1.5) | % | ||||||||||||||
Other Rates Derivatives (1) |
$ | 0.20 | $ | 0.23 | (11.5) | % | ||||||||||||||
Credit | $ | 55.33 | $ | 65.37 | (15.4) | % | ||||||||||||||
Cash Credit (2) |
$ | 145.18 | $ | 164.93 | (12.0) | % | ||||||||||||||
Credit Derivatives, China Bonds and U.S. Cash EP | $ | 7.76 | $ | 8.52 | (8.9) | % | ||||||||||||||
Equities | $ | 15.39 | $ | 16.60 | (7.3) | % | ||||||||||||||
Equities Cash | $ | 26.51 | $ | 26.59 | (0.3) | % | ||||||||||||||
Equities Derivatives | $ | 5.62 | $ | 6.14 | (8.4) | % | ||||||||||||||
Money Markets | $ | 0.35 | $ | 0.38 | (8.1) | % | ||||||||||||||
Total | $ | 2.43 | $ | 2.60 | (6.3) | % | ||||||||||||||
Total excluding Other Rates Derivatives (3) |
$ | 2.88 | $ | 2.92 | (1.3) | % |
(1) |
Includes Swaps/Swaptions of tenor less than 1 year and Rates Futures. |
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(2) | The “Cash Credit” category represents the “Credit” asset class excluding (1) Credit Derivatives (2) China Bonds and (3) U.S. High Grade and High Yield electronically processed (“EP”) activity. | ||||
(3) | Included to contextualize the impact of short-tenored Swaps/Swaptions and Rates Futures on totals for all periods presented. |
2024 Q2 | 2023 Q2 | YoY | |||||||||||||||||||||||||||
Asset Class | Product | ADV (USD mm) | Volume (USD mm) | ADV (USD mm) | Volume (USD mm) | ADV | |||||||||||||||||||||||
Rates | Cash | $ | 462,335 | $ | 29,121,086 | $ | 344,674 | $ | 21,627,623 | 34.14 | % | ||||||||||||||||||
U.S. Government Bonds | 202,460 | 12,754,982 | 135,128 | 8,513,069 | 49.83 | % | |||||||||||||||||||||||
European Government Bonds | 45,699 | 2,879,044 | 40,694 | 2,482,305 | 12.30 | % | |||||||||||||||||||||||
Mortgages | 203,813 | 12,840,218 | 163,359 | 10,291,618 | 24.76 | % | |||||||||||||||||||||||
Other Government Bonds | 10,363 | 646,843 | 5,493 | 340,631 | 88.66 | % | |||||||||||||||||||||||
Derivatives | 787,132 | 49,552,512 | 429,285 | 26,633,837 | 83.36 | % | |||||||||||||||||||||||
Swaps/Swaptions ≥ 1Y | 466,923 | 29,396,323 | 273,533 | 16,961,570 | 70.70 | % | |||||||||||||||||||||||
Swaps/Swaptions < 1Y | 310,657 | 19,558,079 | 154,332 | 9,582,824 | 101.29 | % | |||||||||||||||||||||||
Futures | 9,552 | 598,110 | 1,420 | 89,443 | 572.51 | % | |||||||||||||||||||||||
Total | 1,249,467 | 78,673,598 | 773,959 | 48,261,459 | 61.44 | % | |||||||||||||||||||||||
Credit | Cash | 16,844 | 1,047,204 | 10,627 | 662,558 | 58.50 | % | ||||||||||||||||||||||
U.S. High Grade - Fully Electronic | 6,480 | 408,223 | 3,963 | 249,667 | 63.51 | % | |||||||||||||||||||||||
U.S. High Grade - Electronically Processed | 2,913 | 183,514 | 2,694 | 169,696 | 8.14 | % | |||||||||||||||||||||||
U.S. High Yield - Fully Electronic | 773 | 48,712 | 568 | 35,765 | 36.20 | % | |||||||||||||||||||||||
U.S. High Yield - Electronically Processed | 247 | 15,549 | 317 | 19,998 | (22.25) | % | |||||||||||||||||||||||
European Credit | 2,343 | 147,618 | 1,958 | 119,461 | 19.65 | % | |||||||||||||||||||||||
Municipal Bonds | 369 | 23,274 | 308 | 19,412 | 19.89 | % | |||||||||||||||||||||||
Chinese Bonds | 3,476 | 205,061 | 720 | 42,505 | 382.44 | % | |||||||||||||||||||||||
Other Credit Bonds | 243 | 15,253 | 98 | 6,054 | 147.63 | % | |||||||||||||||||||||||
Derivatives | 12,863 | 810,324 | 8,362 | 520,513 | 53.83 | % | |||||||||||||||||||||||
Swaps | 12,863 | 810,324 | 8,362 | 520,513 | 53.83 | % | |||||||||||||||||||||||
Total | 29,707 | 1,857,527 | 18,989 | 1,183,071 | 56.45 | % | |||||||||||||||||||||||
Equities | Cash | 9,937 | 626,031 | 9,913 | 612,227 | 0.24 | % | ||||||||||||||||||||||
U.S. ETFs | 7,286 | 459,042 | 7,547 | 467,930 | (3.46) | % | |||||||||||||||||||||||
European ETFs | 2,651 | 166,989 | 2,366 | 144,297 | 12.05 | % | |||||||||||||||||||||||
Derivatives | 11,318 | 713,035 | 9,444 | 584,528 | 19.85 | % | |||||||||||||||||||||||
Convertibles/Swaps/Options | 7,982 | 502,841 | 6,340 | 392,306 | 25.89 | % | |||||||||||||||||||||||
Futures | 3,336 | 210,194 | 3,103 | 192,221 | 7.51 | % | |||||||||||||||||||||||
Total | 21,255 | 1,339,066 | 19,356 | 1,196,755 | 9.81 | % | |||||||||||||||||||||||
Money Markets | Cash | 621,840 | 39,173,818 | 484,304 | 30,339,263 | 28.40 | % | ||||||||||||||||||||||
Repurchase Agreements (Repo) | 600,947 | 37,859,666 | 465,955 | 29,184,397 | 28.97 | % | |||||||||||||||||||||||
Other Money Markets | 20,893 | 1,314,152 | 18,349 | 1,154,866 | 13.87 | % | |||||||||||||||||||||||
Total | 621,840 | 39,173,818 | 484,304 | 30,339,263 | 28.40 | % | |||||||||||||||||||||||
ADV (USD mm) | Volume (USD mm) | ADV (USD mm) | Volume (USD mm) | YoY | |||||||||||||||||||||||||
Total | $ | 1,922,270 | $ | 121,044,010 | $ | 1,296,607 | $ | 80,980,548 | 48.3 | % |
(1) |
We acquired Yieldbroker on August 31, 2023 and acquired r8fin on January 19, 2024. Total volume reported includes volumes from each acquired business subsequent to the closing date of the applicable acquisition. |