Tradeweb registers 4.5% Y/Y increase in revenues in Q2 2023
Tradeweb Markets Inc. (NASDAQ:TW), a global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the quarter ended June 30, 2023.
The company posted $310.6 million quarterly revenues, an increase of 4.5% (4.4% on a constant currency basis) compared to prior year period.
The Equities segment generated revenues of $22.1 million in the second quarter of 2023, a decrease of 2.3% compared to prior year period (2.9% decrease on a constant currency basis). Equities ADV was up 15.9% from prior year period.
The Money Markets segment saw revenues of $15.8 million in the second quarter of 2023, an increase of 30.1% compared to prior year period, driven by growth in Tradeweb’s retail CDs and continued organic growth in institutional repurchase agreements. Money Markets ADV was up 14.2% from prior year period, led by record activity in global repurchase agreements and continued client adoption of Tradeweb’s electronic trading solutions.
Market Data revenues of $22.8 million in the second quarter of 2023 increased 8.3% compared to prior year period (8.2% increase on a constant currency basis). The increase was derived primarily from increased proprietary third party market data revenue.
Tradeweb posted $101.9 million of net income and $123.7 million of adjusted net income for the quarter, increases of 24.9% and 10.8% respectively from prior year period.
The company reported $0.42 of diluted earnings per share for the quarter and $0.52 of adjusted diluted earnings per share.
Billy Hult, CEO of Tradeweb, commented:
“Market conditions steadily improved during the second quarter, with our business performing well against a backdrop of mixed markets. We produced double-digit revenue growth across global government bonds, U.S. and European Credit, equity derivatives, and money markets. In Credit, we captured a record 16.0% share of fully-electronic U.S. High Grade TRACE for the month of June and a record 14.9% for the quarter. It was not long ago that our share of U.S. High Grade was in the single digits, and we remain confident in our ability to realize continued market share growth. More broadly, one theme playing a huge role across all of our markets is automation. Average daily trades through our AiEX automation tool grew by 90% in Treasuries and 70% in Credit this quarter compared with prior year period. In Market Data, we continue to evolve our Ai-Price bond-pricing engine with new innovations such as this quarter’s launch of benchmark closing prices for European government bonds with FTSE Russell.”