tw-20210930
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-38860
TRADEWEB MARKETS INC.
(Exact name of registrant as specified in its charter)
___________________________________________
Delaware
83-2456358
(State of other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1177 Avenue of the Americas
New York, New York
10036
(Address of principal executive offices)
(Zip Code)
(646) 430-6000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Class of Stock
Shares Outstanding as of October 20, 2021
Class A Common Stock, par value $0.00001 per share
105,129,747 
Class B Common Stock, par value $0.00001 per share
96,933,192 
Class C Common Stock, par value $0.00001 per share
1,654,825 
Class D Common Stock, par value $0.00001 per share
28,877,108 


Table of Contents
TRADEWEB MARKETS INC.
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021
TABLE OF CONTENTS
Page
Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020
Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2021 and 2020
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020
2

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INTRODUCTORY NOTE
The financial statements and other disclosures contained in this report include those of Tradeweb Markets Inc., which is the registrant, and those of its consolidating subsidiaries, including Tradeweb Markets LLC, which became the principal operating subsidiary of Tradeweb Markets Inc. on April 4, 2019 in a series of reorganization transactions (the “Reorganization Transactions”) that were completed in connection with Tradeweb Markets Inc.’s initial public offering (the “IPO”), which closed on April 8, 2019.
As a result of the Reorganization Transactions completed in connection with the IPO, Tradeweb Markets Inc. became a holding company whose only material assets consist of its equity interest in Tradeweb Markets LLC and related deferred tax assets. As the sole manager of Tradeweb Markets LLC, Tradeweb Markets Inc. operates and controls all of the business and affairs of Tradeweb Markets LLC and, through Tradeweb Markets LLC and its subsidiaries, conducts its business. As a result of this control, and because Tradeweb Markets Inc. has a substantial financial interest in Tradeweb Markets LLC, Tradeweb Markets Inc. consolidates the financial results of Tradeweb Markets LLC and its subsidiaries.
As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires, references to:
“We,” “us,” “our,” the “Company,” “Tradeweb” and similar references refer: (i) on or prior to the completion of the Reorganization Transactions to Tradeweb Markets LLC, which we refer to as “TWM LLC,” and, unless otherwise stated or the context otherwise requires, all of its subsidiaries and any predecessor entities, and (ii) following the completion of the Reorganization Transactions to Tradeweb Markets Inc., and, unless otherwise stated or the context otherwise requires, TWM LLC and all of its subsidiaries and any predecessor entities.
“Bank Stockholders” refer collectively to entities affiliated with the following clients: Barclays Capital Inc., BofA Securities, Inc. (a subsidiary of Bank of America Corporation), Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBS Securities Inc., UBS Securities LLC and Wells Fargo Securities, LLC, which, prior to the completion of the IPO, collectively held a 46% ownership interest in Tradeweb. Following the IPO and the application of the net proceeds therefrom, entities affiliated with BofA Securities, Inc., RBS Securities Inc. and UBS Securities LLC no longer hold LLC Interests and, except as otherwise indicated, are not considered Bank Stockholders for post-IPO periods.
“Continuing LLC Owners” refer collectively to (i) those “Original LLC Owners”, including Refinitiv (as defined below), certain of the Bank Stockholders and members of management, that continued to own LLC Interests (as defined below) after the completion of the IPO and Reorganization Transactions, that received shares of our Class C common stock, shares of our Class D common stock or a combination of both, as the case may be, in connection with the completion of the Reorganization Transactions, and that may redeem or exchange their LLC Interests for shares of our Class A common stock or Class B common stock and (ii) solely with respect to the Tax Receivable Agreement (as defined below), also includes those Original LLC Owners, including certain Bank Stockholders, that disposed of all of their LLC Interests for cash in connection with the IPO.
“Investor Group” refer to certain investment funds affiliated with The Blackstone Group Inc. (f/k/a The Blackstone Group L.P.), an affiliate of Canada Pension Plan Investment Board, an affiliate of GIC Special Investments Pte. Ltd. and certain co-investors, which prior to the LSEG Transaction (as defined below) collectively held indirectly a 55% ownership interest in Refinitiv (as defined below).
“LLC Interests” refer to the single class of common membership interests of TWM LLC issued in connection with the Reorganization Transactions.
“LSEG Transaction” refer to the acquisition of the Refinitiv business by London Stock Exchange Group plc (“LSEG”), in an all share transaction, which closed on January 29, 2021.
“Original LLC Owners” refer to the owners of TWM LLC prior to the Reorganization Transactions.
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“Refinitiv”, prior to the LSEG Transaction, refer to Refinitiv Holdings Limited, and unless otherwise stated or the context otherwise requires, all of its subsidiaries, and subsequent to the LSEG Transaction, refers to Refinitiv Parent Limited, and unless otherwise stated or the context otherwise requires, all of its subsidiaries. Refinitiv owns substantially all of the former financial and risk business of Thomson Reuters (as defined below), including, prior to and following the completion of the Reorganization Transactions, an indirect majority ownership interest in Tradeweb, and was controlled by the Investor Group prior to the LSEG Transaction.
“Refinitiv Transaction” refer to the transaction pursuant to which Refinitiv indirectly acquired on October 1, 2018 substantially all of the financial and risk business of Thomson Reuters and Thomson Reuters indirectly acquired a 45% ownership interest in Refinitiv.
“Thomson Reuters” or “TR” refer to Thomson Reuters Corporation, which prior to the LSEG Transaction indirectly held a 45% ownership interest in Refinitiv.
Numerical figures included in this Quarterly Report on Form 10-Q have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. In addition, we round certain percentages presented in this Quarterly Report on Form 10-Q to the nearest whole number. As a result, figures expressed as percentages in the text may not total 100% or, when aggregated, may not be the arithmetic aggregation of the percentages that precede them.
USE OF NON-GAAP FINANCIAL MEASURES
This Quarterly Report on Form 10-Q contains “non-GAAP financial measures,” which are financial measures that are not calculated and presented in accordance with GAAP.
The Securities and Exchange Commission (“SEC”) has adopted rules to regulate the use in filings with the SEC and in other public disclosures of non-GAAP financial measures. These rules govern the manner in which non-GAAP financial measures are publicly presented and require, among other things:
a presentation with equal or greater prominence of the most comparable financial measure or measures calculated and presented in accordance with GAAP; and
a statement disclosing the purposes for which the registrant’s management uses the non-GAAP financial measure.
Specifically, we make use of the non-GAAP financial measures “Free Cash Flow,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted EBIT,” “Adjusted EBIT margin,” “Adjusted Net Income” and “Adjusted Diluted EPS” in evaluating our past results and future prospects. For the definition of Free Cash Flow and a reconciliation to cash flow from operating activities, its most directly comparable financial measure presented in accordance with GAAP, see Part I, Item 2. – “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures.” For the definitions of Adjusted EBITDA, Adjusted EBIT and Adjusted Net Income and reconciliations to net income and net income attributable to Tradeweb Markets Inc., as applicable, their most directly comparable financial measures presented in accordance with GAAP, see Part I, Item 2. – “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures.” Adjusted EBITDA margin and Adjusted EBIT margin are defined as Adjusted EBITDA and Adjusted EBIT, respectively, divided by revenue for the applicable period. Adjusted Diluted EPS is defined as Adjusted Net Income divided by the diluted weighted average number of shares of Class A common stock and Class B common stock outstanding for the applicable period (including the effect of potentially dilutive securities determined using the treasury stock method), assuming the full exchange of all outstanding LLC Interests held by non-controlling interests for shares of Class A common stock or Class B common stock, for post-IPO periods, and the diluted weighted average number of shares of TWM LLC outstanding for the applicable period (including the effect of potentially dilutive securities determined using the treasury stock method), for pre-IPO periods.
We present Free Cash Flow because we believe it is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our core operations after expenditures for capitalized software development costs and furniture, equipment and leasehold improvements.
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We present Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT and Adjusted EBIT margin because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management and our board of directors use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT and Adjusted EBIT margin to assess our financial performance and believe they are helpful in highlighting trends in our core operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Further, our executive incentive compensation is based in part on components of Adjusted EBITDA and Adjusted EBITDA margin.
We use Adjusted Net Income and Adjusted Diluted EPS as supplemental metrics to evaluate our business performance in a way that also considers our ability to generate profit without the impact of certain items. Each of the normal recurring adjustments and other adjustments described in the definition of Adjusted Net Income helps to provide management with a measure of our operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses.
Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing our results as reported under GAAP. Some of these limitations include the following:
Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect every expenditure, future requirements for capital expenditures or contractual commitments;
Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect changes in our working capital needs;
Adjusted EBITDA and Adjusted EBIT do not reflect any interest expense, or the amounts necessary to service interest or principal payments on any debt obligations;
Adjusted EBITDA and Adjusted EBIT do not reflect income tax expense, which in post-IPO periods is a necessary element of our costs and ability to operate;
although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, and the depreciation and amortization related to acquisitions and the Refinitiv Transaction are eliminated in the calculation of Adjusted EBIT, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA and Adjusted EBIT do not reflect any costs of such replacements;
in post-IPO periods, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect the noncash component of certain employee compensation expense or payroll taxes associated with certain option exercises;
Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative, on a recurring basis, of our ongoing operations; and
other companies in our industry may calculate Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS or similarly titled measures differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our GAAP results and using Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS only as supplemental information.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “will” or “would,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including our expectations about market trends, our market opportunity and the growth of our various markets, our expansion into new markets, any potential tax savings we may realize as a result of our organizational structure, our dividend policy and our expectations, beliefs, plans, strategies, objectives, prospects or assumptions regarding future events, our performance or otherwise, contained in this Quarterly Report on Form 10-Q are forward-looking statements. In addition, statements contained in this Quarterly Report on Form 10-Q relating to the COVID-19 pandemic (including any variants of COVID-19), the potential impacts of which are inherently uncertain, 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 may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements, or could affect our share price.
Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include:
changes in economic, political, social and market conditions and the impact of these changes on trading volumes;
our failure to compete successfully;
our failure to adapt our business effectively to keep pace with industry changes;
consolidation and concentration in the financial services industry;
our dependence on dealer clients that, in some cases, are also stockholders;
our dependence on third parties for certain market data and certain key functions;
our ability to implement our business strategies profitably;
our ability to successfully integrate any acquisition or to realize benefits from any strategic alliances, partnerships or joint ventures;
our inability to maintain and grow the capacity of our trading platforms, systems and infrastructure;
design defects, errors, failures or delays with our platforms or solutions;
systems failures, interruptions, delays in services, cybersecurity incidents, catastrophic events and any resulting interruptions;
inadequate protection of our intellectual property;
extensive regulation of our industry;
our ability to retain the services of certain members of our management;
limitations on operating our business and incurring additional indebtedness as a result of covenant restrictions under our $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”) with Citibank, N.A., as administrative agent and collateral agent, and the other lenders party thereto, and certain Refinitiv indebtedness;
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our dependence on distributions from TWM LLC to fund our expected dividend payments and to pay our taxes and expenses, including payments under the tax receivable agreement (the “Tax Receivable Agreement”) entered into in connection with the IPO;
our ability to realize any benefit from our organizational structure;
Refinitiv’s, and indirectly LSEG's, control of us and our status as a controlled company; and
other risks and uncertainties, including those listed under Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) and in other filings we may make from time to time with the SEC.
Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this Quarterly Report on Form 10-Q are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this Quarterly Report on Form 10-Q, they may not be predictive of results or developments in future periods.
Any forward-looking statement that we make in this Quarterly Report on Form 10-Q speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this Quarterly Report on Form 10-Q.
Investors and others should note that we announce material financial and operational information using our investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about Tradeweb, our business and our results of operations may also be announced by posts on Tradeweb’s accounts on the following social media channels: Instagram, LinkedIn and Twitter. The information that we post through these social media channels may be deemed material. As a result, we encourage investors, the media and others interested in Tradeweb to monitor these social media channels in addition to following our investor relations website press releases, SEC filings and public conference calls and webcasts. These social media channels may be updated from time to time on our investor relations website.
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PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition
(in thousands, except share and per share amounts)
(Unaudited)
September 30,December 31,
20212020
Assets
Cash and cash equivalents$821,905 $791,280 
Restricted cash1,000 1,000 
Receivable from brokers and dealers and clearing organizations33,950 368 
Deposits with clearing organizations24,396 11,671 
Accounts receivable, net of allowance for credit losses of $265 and $243 at September 30, 2021 and December 31, 2020, respectively
133,351 105,286 
Furniture, equipment, purchased software and leasehold improvements, net of accumulated depreciation and amortization28,079 33,814 
Right-of-use assets22,918 29,437 
Software development costs, net of accumulated amortization160,253 168,030 
Goodwill2,782,779 2,694,797 
Intangible assets, net of accumulated amortization1,204,806 1,182,034 
Receivable from affiliates2,806 111 
Deferred tax asset641,708 579,562 
Other assets78,549 82,460 
Total assets$5,936,500 $5,679,850 
Liabilities and Equity
Liabilities
Payable to brokers and dealers and clearing organizations$33,828 $252 
Accrued compensation113,038 129,288 
Deferred revenue29,780 23,193 
Accounts payable, accrued expenses and other liabilities38,649 42,692 
Employee equity compensation payable 1,900 
Lease liability26,770 34,463 
Payable to affiliates3,390 5,142 
Deferred tax liability17,566 19,425 
Tax receivable agreement liability425,150 404,332 
Total liabilities688,171 660,687 
Commitments and contingencies (Note 13)


Equity
Preferred stock, $0.00001 par value; 250,000,000 shares authorized; none issued or outstanding
  
Class A common stock, $0.00001 par value; 1,000,000,000 shares authorized; 105,261,065 and 98,075,465 shares issued and outstanding as of September 30, 2021 and December 31, 2020 respectively
1 1 
Class B common stock, $0.00001 par value; 450,000,000 shares authorized; 96,933,192 and 96,933,192 shares issued and outstanding as of September 30, 2021 and December 31, 2020 respectively
1 1 
Class C common stock, $0.00001 par value; 350,000,000 shares authorized; 1,654,825 and 3,139,821 shares issued and outstanding as of September 30, 2021 and December 31, 2020 respectively
  
Class D common stock, $0.00001 par value; 300,000,000 shares authorized; 28,877,108 and 30,871,381 shares issued and outstanding as of September 30, 2021 and December 31, 2020 respectively
  
Additional paid-in capital4,366,044 4,143,094 
Accumulated other comprehensive income (loss)2,279 4,314 
Retained earnings221,947 156,041 
Total stockholders' equity attributable to Tradeweb Markets Inc.4,590,272 4,303,451 
Non-controlling interests658,057 715,712 
Total equity5,248,329 5,019,163 
Total liabilities and equity$5,936,500 $5,679,850 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except share and per share amounts)
(Unaudited)

Three Months EndedNine Months Ended
September 30,September 30,
2021202020212020
Revenues
Transaction fees and commissions$206,316 $160,175 $629,513 $503,753 
Subscription fees41,390 36,217 117,141 105,706 
Refinitiv market data fees15,002 14,273 45,045 43,466 
Other2,617 2,205 7,865 6,658 
Total revenue265,325 212,870 799,564 659,583 
Expenses
Employee compensation and benefits98,036 83,967 300,107 263,353 
Depreciation and amortization44,823 38,857 127,656 113,952 
Technology and communications14,747 12,037 42,248 34,397 
General and administrative9,561 8,657 21,809 24,520 
Professional fees8,897 7,388 28,993 20,908 
Occupancy3,733 3,443 11,104 10,678 
Total expenses179,797 154,349 531,917 467,808 
Operating income85,528 58,521 267,647 191,775 
Net interest income (expense)(361)(349)(1,179)64 
Income before taxes85,167 58,172 266,468 191,839 
Provision for income taxes(19,862)(11,124)(53,365)(39,898)
Net income65,305 47,048 213,103 151,941 
Less: Net income attributable to non-controlling interests10,542 10,236 35,165 40,705 
Net income attributable to Tradeweb Markets Inc.$54,763 $36,812 $177,938 $111,236 
Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders:
Basic$0.27 $0.20 $0.89 $0.63 
Diluted$0.26 $0.19 $0.86 $0.60 
Weighted average shares outstanding:
Basic202,238,122187,774,170201,029,196177,257,994
Diluted208,197,439194,955,695206,908,330185,026,108
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(in thousands)
(Unaudited)

Three Months EndedNine Months Ended
September 30,September 30,
2021202020212020
Net income$65,305 $47,048 $213,103 $151,941 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, with no tax benefit for each of the three and nine months ended September 30, 2021 and 2020
(2,802)3,381 (2,442)(1,739)
Other comprehensive income (loss), net of tax(2,802)3,381 (2,442)(1,739)
Comprehensive income62,503 50,429 210,661 150,202 
Less: Net income attributable to non-controlling interests10,542 10,236 35,165 40,705 
Less: Foreign currency translation adjustments attributable to non-controlling interests(367)588 (321)(715)
Comprehensive income attributable to Tradeweb Markets Inc.$52,328 $39,605 $175,817 $110,212 
Three Months EndedNine Months Ended
September 30,September 30,
2021202020212020
Comprehensive income - Tradeweb Markets Inc.
Net income attributable to Tradeweb Markets Inc.$54,763 $36,812 $177,938 $111,236 
Other comprehensive income (loss):
Foreign currency translation adjustments attributable to Tradeweb Markets Inc.(2,435)2,793 (2,121)(1,024)
Comprehensive income attributable to Tradeweb Markets Inc.$52,328 $39,605 $175,817 $110,212 
Comprehensive income - Non-controlling interests
Net income attributable to non-controlling interests$10,542 $10,236 $35,165 $40,705 
Other comprehensive income (loss):
Foreign currency translation adjustments attributable to non-controlling interests(367)588 (321)(715)
Comprehensive income attributable to non-controlling interests$10,175 $10,824 $34,844 $39,990 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity
(in thousands, except share and per share amounts)
(Unaudited)
Tradeweb Markets Inc. Stockholders' Equity
Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Class D
Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Non-
Controlling
Interests
Total
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at December 31, 202098,075,465 $1 96,933,192 $1 3,139,821 $ 30,871,381 $ $4,143,094 $4,314 $156,041 $715,712 $5,019,163 
Activities related to exchanges of LLC Interests3,479,269 — — — (1,484,996)— (1,994,273)— — — — — — 
Tax receivable agreement liability and deferred taxes arising from LLC Interest ownership exchanges— — — — — — — — 65,177 — — — 65,177 
Issuance of common stock from equity incentive plans3,088,545 — — — — — — — 46,397 — — — 46,397 
Deferred taxes arising from issuance of common stock from equity incentive plans— — — — — — — — 6,417 — — — 6,417 
Adjustments to non-controlling interests— — — — — — — — 80,665 85 — (80,750) 
Distributions to non-controlling interests— — — — — — — — — — — (2,504)(2,504)
Dividends ($0.08 per share)
— — — — — — — — — — (16,030)— (16,030)
Stock-based compensation expense under the PRSU Plan— — — — — — — — 5,997 — — — 5,997 
Stock-based compensation expense under the RSU Plan— — — — — — — — 2,523 — — — 2,523 
Stock-based compensation expense under the Option Plan— — — — — — — — 2,240 — — — 2,240 
Payroll taxes paid for stock-based compensation exercises— — — — — — — — (45,464)— — — (45,464)
Net income— — — — — — — — — — 67,859 13,706 81,565 
Foreign currency translation adjustments— — — — — — — — — (297)— (46)(343)
Balance at March 31, 2021104,643,279 $1 96,933,192 $1 1,654,825 $ 28,877,108 $ $4,307,046 $4,102 $207,870 $646,118 $5,165,138 
Issuance of common stock from equity incentive plans1,127,573 — — — — — — — 21,139 — — — 21,139 
Deferred taxes arising from issuance of common stock from equity incentive plans— — — — — — — — 23,281 — — — 23,281 
Adjustments to non-controlling interests— — — — — — — — 4,797 1 — (4,798) 
Distributions to non-controlling interests— — — — — — — — — — — (1,969)(1,969)
Dividends ($0.08 per share)
— — — — — — — — —  (16,142)— (16,142)
Share repurchases pursuant to the Share Repurchase Program(617,644)— — — — — — — — — (51,676)— (51,676)
Deferred taxes arising from share repurchases— — — — — — — — (12,816)— — — (12,816)
Stock-based compensation expense under the PRSU Plan— — — — — — — — 7,826 — — — 7,826 
Stock-based compensation expense under the RSU Plan— — — — — — — — 3,815 — — — 3,815 
Stock-based compensation expense under the Option Plan— — — — — — — — 766 — — — 766 
Payroll taxes paid for stock-based compensation exercises— — — — — — — — (7,970)— — — (7,970)
Net income— — — — — — — — — — 55,316 10,917 66,233 
Foreign currency translation adjustments— — — — — — — — — 611 — 92 703 
Balance at June 30, 2021105,153,208 $1 96,933,192 $1 1,654,825 $ 28,877,108 $ $4,347,884 $4,714 $195,368 $650,360 $5,198,328 
Issuance of common stock from equity incentive plans248,026 — — — — — — — 4,441 — — — 4,441 
Deferred taxes arising from issuance of common stock from equity incentive plans— — — — — — — — 1,481 — — — 1,481 
Adjustments to non-controlling interests— — — — — — — — (16)— — 16  
Distributions to non-controlling interests— — — — — — — — — — — (2,494)(2,494)
Dividends ($0.08 per share)
— — — — — — — — — — (16,184)— (16,184)
Share repurchases pursuant to the Share Repurchase Program(140,169)— — — — — — — — — (12,000)— (12,000)
Stock-based compensation expense under the PRSU Plan— — — — — — — — 8,220 — — — 8,220 
Stock-based compensation expense under the RSU Plan— — — — — — — — 4,401 — — — 4,401 
Stock-based compensation expense under the Option Plan— — — — — — — — 1,155 — — — 1,155 
Payroll taxes paid for stock-based compensation exercises— — — — — — — — (3,139)— — — (3,139)
Net income— — — — — — — — — — 54,763 10,542 65,305 
Foreign currency translation adjustments— — — — — — — — — (2,435)— (367)(2,802)
Other - See Note 10— — — — — — — — 1,617 — — — 1,617 
Balance at September 30, 2021105,261,065 $1 96,933,192 $1 1,654,825 $ 28,877,108 $ $4,366,044 $2,279 $221,947 $658,057 $5,248,329 
The accompanying notes are an integral part of these condensed consolidated financial statements.

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Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity – (Continued)
(in thousands, except share and per share amounts)
(Unaudited)
Tradeweb Markets Inc. Stockholders' Equity
Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Class D
Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Non-
Controlling
Interests
Total
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at December 31, 201966,408,328 $1 96,933,192 $1 8,328,983 $ 50,853,172 $1 $3,329,386 $1,366 $47,833 $1,214,157 $4,592,745 
Activities related to exchanges of LLC Interests, net of offering costs and cancellations1,920,941 — — — (939,000)— (981,941)(1)(335)— — — (336)
Tax receivable agreement liability and deferred taxes arising from LLC Interest ownership exchanges— — — — — — — — 32,736 — — — 32,736 
Issuance of common stock from equity incentive plans2,341,171 — — — — — — — 35,422 — — — 35,422 
Adjustments to non-controlling interests— —