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Tradeweb intends to use the net proceeds from the offering to purchase equity interests from certain existing owners. Refinitiv will continue to own a controlling interest in Tradeweb following the offering. J.P. Morgan,
Preliminary Third Quarter 2019 Financial Results
The preliminary prospectus included in the registration statement filed by Tradeweb in connection with the proposed offering contains Tradeweb’s preliminary unaudited financial results for the three and nine months ended
Set forth below are management’s estimates for expected gross revenue, total expenses, net income, net income attributable to
Successor |
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Predecessor |
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Three Months
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Three Months
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$ Change |
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% Change |
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(dollars in thousands) |
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Revenue | ||||||||
Rates |
$115,505 |
$92,592 |
$22,913 |
24.7% |
||||
Credit |
39,578 |
33,642 |
5,936 |
17.6% |
||||
Equities |
12,333 |
8,484 |
3,849 |
45.4% |
||||
Money Markets |
10,480 |
8,667 |
1,813 |
20.9% |
||||
Market Data |
16,914 |
15,770 |
1,144 |
7.3% |
||||
Other |
6,171 |
6,098 |
73 |
1.2% |
||||
Gross Revenue |
200,981 |
165,253 |
35,728 |
21.6% |
||||
Total expenses |
142,723 |
114,973 |
* | * | ||||
Net Income |
48,578 |
45,955 |
* | * | ||||
Net income attributable to Tradeweb Markets Inc. |
29,612 |
- |
- |
- |
||||
Diluted earnings per share (1) | 0.20(b) | 0.21(a) | * | * | ||||
Non-GAAP Financial Measures | ||||||||
Adjusted EBITDA (2) |
$93,449 |
$66,583 |
26,866 |
40.3% |
||||
Adjusted EBITDA Margin (2) |
46.5% |
40.3% |
+620bps | |||||
Adjusted EBIT (2) |
$83,096 |
$56,734 |
26,362 |
46.5% |
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Adjusted EBIT Margin (2) |
41.3% |
34.3% |
+701bps | |||||
Adjusted Net Income (2) |
$61,627 |
$42,252 |
19,375 |
45.9% |
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Adjusted Diluted EPS (2)(3) |
$0.27 |
$0.19 |
0.08 |
38.6% |
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Successor |
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Predecessor |
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Nine Months
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Nine Months
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$ Change |
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% Change |
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(dollars in thousands) |
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Revenue | ||||||||
Rates |
$326,658 |
$281,641 |
45,017 |
16.0% |
||||
Credit |
118,612 |
102,452 |
16,160 |
15.8% |
||||
Equities |
35,247 |
28,347 |
6,900 |
24.3% |
||||
Money Markets |
30,364 |
25,248 |
5,116 |
20.3% |
||||
Market Data |
51,361 |
47,059 |
4,302 |
9.1% |
||||
Other |
16,016 |
21,024 |
(5,008) |
-23.8% |
||||
Gross Revenue |
578,258 |
505,771 |
72,487 |
14.3% |
||||
Total expenses |
442,768 |
338,607 |
* | * | ||||
Net Income |
115,746 |
130,160 |
* | * | ||||
Net income attributable to Tradeweb Markets Inc. |
42,440 |
- |
- |
- |
||||
Diluted earnings per share (1) | 0.19(a)/0.28(b) | 0.60(a) | * | * | ||||
Non-GAAP Financial Measures | ||||||||
Adjusted EBITDA (2) |
$260,721 |
$214,091 |
46,630 |
21.8% |
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Adjusted EBITDA Margin (2) |
45.1% |
42.3% |
+276bps | |||||
Adjusted EBIT (2) |
$229,915 |
$184,859 |
45,056 |
24.4% |
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Adjusted EBIT Margin (2) |
39.8% |
36.5% |
+321bps | |||||
Adjusted Net Income (2) |
$170,446 |
$137,327 |
33,119 |
24.1% |
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Adjusted Diluted EPS (2)(3) |
$0.74 |
$0.64 |
0.10 |
16.0% |
* |
As a result of the Refinitiv Transaction and pushdown accounting, certain financial information for the period beginning on October 1, 2018, and through and including September 30, 2019, which we refer to as the “Successor period,” and certain financial information for the periods prior to, and including, September 30, 2018, referred to as the “Predecessor period,” are not comparable. See “Basis of Presentation” in Appendix A attached hereto. |
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(1) |
As a result of the Reorganization Transactions and the IPO completed in April 2019, certain earnings information is being presented separately for Tradeweb Markets LLC and Tradeweb Markets Inc. |
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(a) Presents information for Tradeweb Markets LLC (pre-IPO period). |
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(b) Presents information for Tradeweb Markets Inc. (post-IPO period). |
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For more information for pre-IPO period and post-IPO period earnings per share information, see “Basis of Presentation,” “Note 16 — Earnings Per Share” to the unaudited consolidated financial statements of Tradeweb Markets Inc. included in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019. and “Note 18 — Net Income Per Share” to the audited consolidated financial statements of Tradeweb Markets LLC, included in Tradeweb’s Current Report on Form 8-K dated June 18, 2019. |
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(2) |
For the definitions of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income and Adjusted Diluted EPS and for reconciliations to their most directly comparable financial measures presented in accordance with GAAP, see the tables included in Appendix A attached hereto. |
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(3) |
Adjusted Diluted EPS includes certain tax related adjustments to reflect an assumed effective tax rate for all periods presented and, for the three and nine months ended September 30, 2019, assumes all LLC Interests are exchanged for shares of Class A or Class B common stock. As a result, management believes that Adjusted Diluted EPS for Tradeweb Markets Inc. and Tradeweb Markets LLC are comparable. |
The issuer has filed a registration statement (including a prospectus) with the
Alternatively, copies of the preliminary prospectus may be obtained from
These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, the proposed offering and plans regarding the use of proceeds therefrom, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in documents of
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20191015006163/en/
Source:
Investor
Ashley Serrao, Tradeweb
+1 646 430 6027
Ashley.Serrao@Tradeweb.com
Media
Jonathan Mairs, Tradeweb
+1 646 430 6176
Jonathan.Mairs@Tradeweb.com