Tradeweb Markets Posts 23% Jump in Q2 Revenue, Beats Estimates

Tradeweb Markets Inc. (Nasdaq: TW) released its financial results for the second quarter, ending on June 30, 2021, reporting a yearly surge across all key metrics.

According to the company, its revenue for the quarter came in 23 percent higher for the same period last year. In absolute terms, it generated $260.8 million. Further, the figure beats the street estimation by $0.45 million.

Tradeweb operates electronic marketplaces for rates, credit, equities and money markets. It recorded an average daily volume (ADV) of $976.9 billion for the quarter, which was 25.5 percent higher than the previous year.

Trading Activities Benefit Earnings 

The jump in trading activities and revenue helped the company to yield a net quarterly income of $66.2 million, which is a year-over-year gain of 56.2 percent. While on an adjusted basis, the net income jumped 32.9 percent to $93.6 million.

Additionally, the official announcement detailed that the EBITDA margin stood at 50.6 percent, compared to 47.8 percent in the previous year. The adjusted figure came in at $131.9 million.

The diluted earnings per share (EPS) came in at $0.27, beating the estimates by $0.02. However, the non-GAAP figure missed the estimates by $0.10.

“Broadening client choice was an important theme this quarter in both credit and rates. Our clients utilized a wider range of electronic trading tools and protocols in credit including RFQ, Tradeweb AllTrade and Portfolio Trading — further evidence that electronic trading activity continues to grow in terms of both volume and sophistication,” Tradeweb CEO, Lee Olesky said in a statement.

Meanwhile, the company closed the acquisition of Nasdaq Fixed Income last quarter that will position itself better in the trading market.

“From a broader Tradeweb perspective, this acquisition is a great opportunity, and we believe it positions us well to drive additional shareholder value,” Olesky added.