Tradeweb reports 14.4% Y/Y increase in revenues for Q3 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 September 30, 2023.
The company reported $328.4 million in quarterly revenues, an increase of 14.4% (12.5% on a constant currency basis) compared to prior year period.
The Equities segment generated revenues of $20.9 million in the third quarter of 2023, down 1.8% compared to prior year period (4.8% decrease on a constant currency basis).
The Money Markets segment saw revenues of $15.8 million in the third quarter of 2023, up 21.5% compared to prior year period (20.0% increase on a constant currency basis).
The Market Data segment generated revenues of $23.0 million in the third quarter of 2023, up 8.2% compared to prior year period (6.9% increase on a constant currency basis). The increase was derived primarily from increased proprietary third party market data and trade reporting services (APA) revenue.
Tradeweb posted $111.6 million in net income and $130.8 million in adjusted net income for the quarter, increases of 36.9% and 22.8% respectively from prior year period
The company declared $0.09 per share quarterly cash dividend.
Billy Hult, CEO of Tradeweb, commented:
“Tradeweb delivered record third-quarter revenues, as heightened focus on fixed income and a sustained period of high interest rates dominated institutional, wholesale and retail client sectors. Reflecting the breadth of Tradeweb’s business, our nearly 30% year-over-year increase in quarterly ADV was fueled by strong volumes in rates, credit, equities and money markets.
We continued to grow market share in credit, where our record share of fully-electronic U.S. High Grade TRACE increased by 263 bps compared to the prior year period – and has more than quadrupled over the past five years. We made continued progress against our strategic growth priorities with the closing of the Yieldbroker acquisition during the third quarter.
Today, we also announced a new licensing agreement with LSEG Data & Analytics (Refinitiv), allowing LSEG to distribute our market data while providing Tradeweb with increased revenue and flexibility as we grow our market data offering.”