Tradeweb Ends Q4 2022 with a 65% Net Income Rise

by Arnab Shome
  • The diluted earnings per share for the quarter came in at $0.42.
  • The ADV for the three months came in at $1.1 trillion.
Tradeweb

Tradeweb Markets (Nasdaq: TW), an operator of electronic marketplaces for rates, credit, equities and money markets, published its financials on Thursday, reporting $293 million in revenue for the fourth quarter of 2022. The figure jumped 5.8 percent year-over-year.

Tradeweb Sees Solid Net Income Rise

Further, the company witnessed a massive 65 percent uptick in its quarterly net income, which came in at $99 million. It was boosted by a lower tax expense related to changes in our deferred tax assets and an increase in interest income. On the other hand, the adjusted income increased by 17.2 percent to $116.9 million.

The adjusted EBITDA for the three months between October and December came in at $154.7 million with a 52 percent margin, compared to $140.1 million with a 50.6 percent margin in the final quarter of the previous year. The diluted earnings per share for the quarter came in at $0.42, with $0.49 as the adjusted figure.

In the third quarter of 2022, the company reported solid performance, with $287.1 million in revenue and $81.6 million in net income. It even partnered with FXall to build a hedging overflow solution and inked another deal with BlackRock to broaden bond market offerings.

“Tradeweb reported its 23rd consecutive year of revenue growth in 2022,” said Tradeweb’s CEO, Billy Hult, who replaced Lee Olesky for the apex position last month.

“The breadth of our business played an important role in these results, as we helped clients navigate interest rate volatility, geopolitical risk, a strong US dollar, and fear of a global recession.”

Check out the FMLS22 session on "Market Data amid Global Turmoil and Accelerated Digitalization."

A Decrease in Tradeweb ADV

However, the quarterly average daily volume on the platform decreased by 4.1 percent to $1.1 trillion. Its full-year ADV for 2022 also came in at $1.1 trillion, which is 9.9 percent higher than the previous year.

“While this environment created some headwinds for rates trading in the fourth quarter, improved liquidity in December helped drive year-over-year ADV growth for the month in government bonds and swaps,” Hult added. “Continued momentum in credit and equities contributed to our overall growth story, accounting for 61% and 29% of our fourth quarter revenue growth, respectively.”

Tradeweb Markets (Nasdaq: TW), an operator of electronic marketplaces for rates, credit, equities and money markets, published its financials on Thursday, reporting $293 million in revenue for the fourth quarter of 2022. The figure jumped 5.8 percent year-over-year.

Tradeweb Sees Solid Net Income Rise

Further, the company witnessed a massive 65 percent uptick in its quarterly net income, which came in at $99 million. It was boosted by a lower tax expense related to changes in our deferred tax assets and an increase in interest income. On the other hand, the adjusted income increased by 17.2 percent to $116.9 million.

The adjusted EBITDA for the three months between October and December came in at $154.7 million with a 52 percent margin, compared to $140.1 million with a 50.6 percent margin in the final quarter of the previous year. The diluted earnings per share for the quarter came in at $0.42, with $0.49 as the adjusted figure.

In the third quarter of 2022, the company reported solid performance, with $287.1 million in revenue and $81.6 million in net income. It even partnered with FXall to build a hedging overflow solution and inked another deal with BlackRock to broaden bond market offerings.

“Tradeweb reported its 23rd consecutive year of revenue growth in 2022,” said Tradeweb’s CEO, Billy Hult, who replaced Lee Olesky for the apex position last month.

“The breadth of our business played an important role in these results, as we helped clients navigate interest rate volatility, geopolitical risk, a strong US dollar, and fear of a global recession.”

Check out the FMLS22 session on "Market Data amid Global Turmoil and Accelerated Digitalization."

A Decrease in Tradeweb ADV

However, the quarterly average daily volume on the platform decreased by 4.1 percent to $1.1 trillion. Its full-year ADV for 2022 also came in at $1.1 trillion, which is 9.9 percent higher than the previous year.

“While this environment created some headwinds for rates trading in the fourth quarter, improved liquidity in December helped drive year-over-year ADV growth for the month in government bonds and swaps,” Hult added. “Continued momentum in credit and equities contributed to our overall growth story, accounting for 61% and 29% of our fourth quarter revenue growth, respectively.”

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6231 Articles
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