Tradeweb Markets Inc. (NASDAQ:TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the quarter ended June 30, 2023.

$310.6 million quarterly revenues, an increase of 4.5% (4.4% on a constant currency basis) compared to prior year period

$1.3 trillion average daily volume ("ADV") for the quarter, an increase of 10.2% compared to prior year period; quarterly ADV records in global repurchase agreements and equity convertibles/swaps/options, and a record 14.9% share of fully electronic U.S. High Grade TRACE

$101.9 million net income and $123.7 million adjusted net income for the quarter, increases of 24.9% and 10.8% respectively from prior year period

52.5% adjusted EBITDA margin and $163.1 million adjusted EBITDA for the quarter, compared to 52.4% and $155.6 million respectively for prior year period

$0.42 diluted earnings per share ("Diluted EPS") for the quarter and $0.52 adjusted diluted earnings per share

$0.09 per share quarterly cash dividend declared; $7.6 million of shares repurchased

Billy Hult, CEO of Tradeweb:

"Market conditions steadily improved during the second quarter, with our business performing well against a backdrop of mixed markets. We produced double-digit revenue growth across global government bonds, U.S. and European Credit, equity derivatives, and money markets. In Credit, we captured a record 16.0% share of fully-electronic U.S. High Grade TRACE for the month of June and a record 14.9% for the quarter. It was not long ago that our share of U.S. High Grade was in the single digits, and we remain confident in our ability to realize continued market share growth. More broadly, one theme playing a huge role across all of our markets is automation. Average daily trades through our AiEX automation tool grew by 90% in Treasuries and 70% in Credit this quarter compared with prior year period. In Market Data, we continue to evolve our Ai-Price bond-pricing engine with new innovations such as this quarter's launch of benchmark closing prices for European government bonds with FTSE Russell."

SELECT FINANCIAL RESULTS		2Q23			2Q22		Change		Constant Currency Change⁽¹⁾
(dollars in thousands except per share amounts)(Unaudited)
GAAP Financial Measures
Total revenue	$	310,613		$	297,138		4.5	%	4.4	%
Rates	$	160,354		$	151,586		5.8	%	5.6	%
Credit	$	84,048		$	83,991		0.1	%	0.1	%
Equities	$	22,146		$	22,659		(2.3	)%	(2.9	)%
Money Markets	$	15,834		$	12,166		30.1	%	30.0	%
Market Data	$	22,776		$	21,030		8.3	%	8.2	%
Other	$	5,455		$	5,706		(4.4	)%	(4.4	)%
Net income	$	101,939		$	81,600		24.9	%
Net income attributable to Tradeweb Markets Inc. ⁽²⁾	$	89,082		$	68,344		30.3	%
Diluted EPS	$	0.42		$	0.33		27.3	%
Net income margin		32.8	%		27.5	%	+536	bps
Non-GAAP Financial Measures
Adjusted EBITDA ⁽¹⁾	$	163,055		$	155,621		4.8	%	4.9	%
Adjusted EBITDA margin ⁽¹⁾		52.5	%		52.4	%	+12	bps	+27	bps
Adjusted EBIT ⁽¹⁾	$	148,797		$	142,612		4.3	%	4.5	%
Adjusted EBIT margin ⁽¹⁾		47.9	%		48.0	%	-9	bps	+5	bps
Adjusted Net Income ⁽¹⁾	$	123,749		$	111,659		10.8	%	11.1	%
Adjusted Diluted EPS⁽¹⁾	$	0.52		$	0.47		10.6	%	10.6	%

(1)		Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Diluted EPS and constant currency change are non-GAAP financial measures. See "Non-GAAP Financial Measures" below and the attached schedules for additional information and reconciliations of such non-GAAP financial measures.
(2)		Represents net income less net income attributable to non-controlling interests.

ADV (US $bn) (Unaudited)
Asset Class	Product		2Q23		2Q22	YoY
Rates	Cash	$	345	$	341	1.0	%
	Derivatives		429		368	16.8	%
	Total		774		709	9.2	%
Credit	Cash		11		10	4.2	%
	Derivatives		8		16	(49.3	)%
	Total		19		27	(28.8	)%
Equities	Cash		10		10	(0.3	)%
	Derivatives		9		7	39.7	%
	Total		19		17	15.9	%
Money Markets	Cash		484		424	14.2	%
	Total		484		424	14.2	%
	Total	$	1,297	$	1,176	10.2	%

DISCUSSION OF RESULTS

Rates – Revenues of $160.4 million in the second quarter of 2023 increased 5.8% compared to prior year period (5.6% increase on a constant currency basis). Rates ADV was up 9.2% from prior year period, driven by strong volumes in swaps/swaptions ≥ 1-year led in part by heightened trading in shorter dated instruments and 42% increase in compression and LIBOR-transition related activity as compared to prior year period. U.S. and European government bond volumes were supported by sustained rates market volatility.

Credit – Revenues of $84.0 million in the second quarter of 2023 increased 0.1% compared to prior year period (the same percentage increase on a constant currency basis). Credit ADV was down 28.8% from prior year period, as lower credit derivatives volumes reflected an overall decline in broader swap execution facility (SEF) market activity. Our share of fully electronic TRACE for U.S. High Grade was a record 14.9%, up 200 bps compared with prior year period, while U.S. High Yield was 6.2%, same as prior year period.

Equities – Revenues of $22.1 million in the second quarter of 2023 decreased 2.3% compared to prior year period (2.9% decrease on a constant currency basis). Equities ADV was up 15.9% from prior year period and we reported record ADV in equity convertibles/swaps/options in the quarter. U.S. ETF growth was driven by strong wholesale activity, while institutional client engagement remained robust. European ETF volumes reflected declining overall market volumes.

Money Markets – Revenues of $15.8 million in the second quarter of 2023 increased 30.1% compared to prior year period (30.0% increase on a constant currency basis), driven by growth in our retail CDs and continued organic growth in institutional repurchase agreements. Money Markets ADV was up 14.2% from prior year period, led by record activity in global repurchase agreements and continued client adoption of Tradeweb's electronic trading solutions.

Market Data – Revenues of $22.8 million in the second quarter of 2023 increased 8.3% compared to prior year period (8.2% increase on a constant currency basis). The increase was derived primarily from increased proprietary third party market data revenue.

Other – Revenues of $5.5 million in the second quarter of 2023 decreased 4.4% compared to prior year period (the same percentage decrease on a constant currency basis).

Operating Expenses of $194.3 million in the second quarter of 2023 increased 2.0% compared to $190.5 million in prior year period due to higher general and administrative expenses, higher technology and communications expenses and higher professional fee expenses. These increases were partially offset by a decrease in expenses related to employee compensation and benefits, primarily due to decreases in incentive compensation.

Adjusted Expenses of $161.8 million increased 4.7% (4.3% increase on a constant currency basis) compared to prior year period due to higher technology and communications expenses, higher general and administrative expenses and higher depreciation and amortization. Please see "Non-GAAP Financial Measures" below for additional information.

RECENT HIGHLIGHTS

Second Quarter 2023

Tradeweb agreed to acquire Yieldbroker, a leading Australian trading platform for Australian and New Zealand government bonds and interest rate derivatives covering the institutional, wholesale, and primary markets, subject to customary closing conditions and regulatory approvals
Tradeweb jointly announced a collaboration with Euroclear and Informa Global Markets to automate the security identification and setup process for soon-to-be issued syndicated Eurobonds in the primary market
Tradeweb facilitated its first transactions on Swap Connect, China's new electronic trading channel for CNY interest rate swaps (IRS). Tradeweb is currently the only international electronic trading platform that supports both request-for-quote (RFQ) and click-to-trade (CTT) execution protocols on Swap Connect
Tradeweb, Bloomberg and MarketAxess entered into a joint venture agreement to establish an independent company for the purpose of participating in the public procurement procedure to become the fixed income consolidated tape provider in the European Union, all subject to relevant regulatory approvals
Tradeweb collaborated with FTSE Russell to launch benchmark closing prices for European government bonds
Tradeweb was recognized in numerous awards celebrating our company, including: Portfolio Awards, Best Web Video (Financial Communications Society), Portfolio Awards, Best Digital Collateral (Financial Communications Society), Portfolio Awards, Best Organic Social Media (Financial Communications Society), Inside Market Data & Inside Reference Data Awards, Best Real-Time Market Data Initiative (WatersTechnology), Excellence in Trading & Tech Awards, Best Fixed Income Trading Platform (Financial News), Excellence in Trading & Tech Awards and Best OTC Trading Platform (Financial News)
Jacques Aigrain succeeded Lee Olesky as Chair of the Board of Directors (the "Board") effective July 1, 2023. Mr. Olesky retired from the Board at the end of the second quarter of 2023.
Catherine Johnson was elected to the Board at the 2023 Annual Meeting held on May 15, 2023. In addition, each of current directors Troy Dixon, Scott Ganeles and Murray Roos was elected to serve another term on the Board at the 2023 Annual Meeting

CAPITAL MANAGEMENT

$1.4 billion in cash and cash equivalents and an undrawn $500 million credit facility at June 30, 2023
Cash capital expenditures and capitalization of software development in the second quarter 2023: $15.0 million
Free cash flow for the trailing twelve months ended June 30, 2023 of $634.8 million, up 17.9% compared to prior year period. See "Non-GAAP Financial Measures" for additional information
During the second quarter of 2023, as part of its share repurchase program, Tradeweb purchased 107,365 shares of Class A common stock, at an average price of $70.81, for purchases totaling $7.6 million. As of June 30, 2023, a total of $244.7 million remained available for repurchase pursuant to the share repurchase program
$1.9 million in shares of Class A common stock were withheld in the second quarter of 2023 to satisfy tax obligations related to the exercise of stock options and vesting of restricted stock units and performance-based restricted stock units held by employees
The Board declared a quarterly cash dividend of $0.09 per share of Class A common stock and Class B common stock. The dividend will be payable on September 15, 2023 to stockholders of record as of September 1, 2023

OTHER MATTERS

Unchanged Full-Year 2023 Guidance*

Adjusted Expenses: $669 - 714 million
Acquisition and Refinitiv Transaction related depreciation and amortization expense: $127 million
Assumed non-GAAP tax rate: ~24% - 25%
Cash costs of capital expenditures and capitalized software development: $56 - 62 million

*GAAP operating expenses and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement of foreign currency rates. Current guidance is not reflective of any impact as a result of the pending 2023 Yieldbroker acquisition.

CONFERENCE CALL

Tradeweb Markets will hold a conference call to discuss second quarter 2023 results starting at 9:30 AM EDT today, July 27, 2023. A live, audio webcast of the conference call along with related presentation materials will be available at https://investors.tradeweb.com/events-and-presentations.

To join the call via audio webcast, click here: https://edge.media-server.com/mmc/p/hfxjvxw7
To join the call via phone, please register in advance here: https://register.vevent.com/register/BIfc63e47c64dc4781a0582131daf2e918

Registered participants will receive an email confirmation with a unique PIN to access the conference call

An archived recording of the call will be available afterward at https://investors.tradeweb.com.

ABOUT TRADEWEB MARKETS

Tradeweb Markets Inc. (NASDAQ:TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $1.2 trillion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.


TRADEWEB MARKETS INC.
CONSOLIDATED STATEMENTS OF INCOME
Dollars in Thousands, Except Per Share Data
	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2023			2022			2023			2022
Revenues	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Transaction fees and commissions	$	246,461		$	237,669		$	513,059		$	489,474
Subscription fees		45,748			41,540			90,122			82,995
Refinitiv market data fees		15,461			15,426			31,055			30,984
Other		2,943			2,503			5,626			5,171
Total revenue		310,613			297,138			639,862			608,624

Expenses
Employee compensation and benefits		103,924			109,890			218,417			227,881
Depreciation and amortization		45,887			44,770			91,291			89,220
Technology and communications		18,701			16,034			36,268			31,810
General and administrative		11,072			7,601			24,992			17,914
Professional fees		10,666			8,575			21,842			16,432
Occupancy		4,028			3,661			8,151			7,158
Total expenses		194,278			190,531			400,961			390,415
Operating income		116,335			106,607			238,901			218,209
Net interest income (expense)		15,109			541			27,600			94
Other income (loss), net		(456	)		—			(115	)		—
Income before taxes		130,988			107,148			266,386			218,303
Provision for income taxes		(29,049	)		(25,548	)		(62,254	)		(39,258	)
Net income		101,939			81,600			204,132			179,045
Less: Net income attributable to non-controlling interests		12,857			13,256			27,194			27,736
Net income attributable to Tradeweb Markets Inc.	$	89,082		$	68,344		$	176,938		$	151,309

Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders:
Basic	$	0.42		$	0.33		$	0.84		$	0.74
Diluted	$	0.42		$	0.33		$	0.83		$	0.73
Weighted average shares outstanding:
Basic		211,569,728			204,501,035			209,847,153			204,282,406
Diluted		213,156,753			207,272,675			211,659,814			207,371,372


TRADEWEB MARKETS INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
Dollars in Thousands, Except per Share Data
	Three Months Ended						Six Months Ended
Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted EBIT Margin	June 30,						June 30,
		2023			2022			2023			2022
	(dollars in thousands)
Net income	$	101,939		$	81,600		$	204,132		$	179,045
Merger and acquisition transaction and integration costs ⁽¹⁾		1,212			15			1,797			(3	)
Net interest (income) expense		(15,109	)		(541	)		(27,600	)		(94	)
Depreciation and amortization		45,887			44,770			91,291			89,220
Stock-based compensation expense ⁽²⁾		585			7,295			1,435			11,164
Provision for income taxes		29,049			25,548			62,254			39,258
Foreign exchange (gains) / losses ⁽³⁾		(964	)		(3,066	)		1,834			(2,334	)
Tax receivable agreement liability adjustment ⁽⁴⁾		—			—			—			—
Other (income) loss, net		456			—			115			—
Adjusted EBITDA	$	163,055		$	155,621		$	335,258		$	316,256
Less: Depreciation and amortization		(45,887	)		(44,770	)		(91,291	)		(89,220	)
Add: D&A related to acquisitions and the Refinitiv Transaction ⁽⁵⁾		31,629			31,761			63,246			63,530
Adjusted EBIT	$	148,797		$	142,612		$	307,213		$	290,566
Net income margin⁽⁶⁾		32.8	%		27.5	%		31.9	%		29.4	%
Adjusted EBITDA margin ⁽⁶⁾		52.5	%		52.4	%		52.4	%		52.0	%
Adjusted EBIT margin ⁽⁶⁾		47.9	%		48.0	%		48.0	%		47.7	%

(1)		Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration.
(2)		Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2022, this adjustment also includes $5.7 million and $7.4 million, respectively, of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our former CFO and former CEO.
(3)		Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity's functional currency.
(4)		Represents income recognized during the applicable period due to changes in the tax receivable agreement liability recorded in the consolidated statement of financial condition as a result of changes in the mix of earnings, tax legislation and tax rates in various jurisdictions which impacted our tax savings.
(5)		Represents intangible asset and acquired software amortization resulting from the NFI Acquisition and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction).
(6)		Net income margin, Adjusted EBITDA margin and Adjusted EBIT margin are defined as net income, Adjusted EBITDA and Adjusted EBIT, respectively, divided by revenue for the applicable period.

	Three Months Ended						Six Months Ended
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS	June 30,						June 30,
		2023			2022			2023			2022
	(in thousands, except per share amounts)
Earnings per diluted share	$	0.42		$	0.33		$	0.83		$	0.73
Net income attributable to Tradeweb Markets Inc.	$	89,082		$	68,344		$	176,938		$	151,309
Net income attributable to non-controlling interests ⁽¹⁾		12,857			13,256			27,194			27,736
Net income		101,939			81,600			204,132			179,045
Provision for income taxes		29,049			25,548			62,254			39,258
Merger and acquisition transaction and integration costs ⁽²⁾		1,212			15			1,797			(3	)
D&A related to acquisitions and the Refinitiv Transaction ⁽³⁾		31,629			31,761			63,246			63,530
Stock-based compensation expense ⁽⁴⁾		585			7,295			1,435			11,164
Foreign exchange (gains) / losses ⁽⁵⁾		(964	)		(3,066	)		1,834			(2,334	)
Tax receivable agreement liability adjustment ⁽⁶⁾		—			—			—			—
Other (income) loss, net		456			—			115			—
Adjusted Net Income before income taxes		163,906			143,153			334,813			290,660
Adjusted income taxes ⁽⁷⁾		(40,157	)		(31,494	)		(82,029	)		(63,946	)
Adjusted Net Income	$	123,749		$	111,659		$	252,784		$	226,714
Adjusted Diluted EPS ⁽⁸⁾	$	0.52		$	0.47		$	1.07		$	0.95

(1)		Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock.
(2)		Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration.
(3)		Represents intangible asset and acquired software amortization resulting from the NFI Acquisition and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction).
(4)		Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2022, this adjustment also includes $5.7 million and $7.4 million, respectively, of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our former CFO and former CEO.
(5)		Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity's functional currency.
(6)		Represents income recognized during the applicable period due to changes in the tax receivable agreement liability recorded in the consolidated statement of financial condition as a result of changes in the mix of earnings, tax legislation and tax rates in various jurisdictions which impacted our tax savings.
(7)		Represents corporate income taxes at an assumed effective tax rate of 24.5% applied to Adjusted Net Income before income taxes for the three and six months ended June 30, 2023 and 22.0% for the three and six months ended June 30, 2022.
(8)		For a summary of the calculation of Adjusted Diluted EPS, see "Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding and Adjusted Diluted EPS" below.

The following table summarizes the calculation of Adjusted Diluted EPS for the periods presented:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding and Adjusted Diluted EPS		2023		2022		2023		2022
Diluted weighted average shares of Class A and Class B common stock outstanding		213,156,753		207,272,675		211,659,814		207,371,372
Weighted average of other participating securities ⁽¹⁾		241,963		76,426		266,790		80,778
Assumed exchange of LLC Interests for shares of Class A or Class B common stock⁽²⁾		23,153,250		29,971,658		24,738,197		30,133,370
Adjusted diluted weighted average shares outstanding		236,551,966		237,320,759		236,664,801		237,585,520
Adjusted Net Income (in thousands)	$	123,749	$	111,659	$	252,784	$	226,714
Adjusted Diluted EPS	$	0.52	$	0.47	$	1.07	$	0.95

(1)		Represents weighted average unvested restricted stock units and unsettled vested performance-based restricted stock units issued to certain retired or terminated employees that are entitled to non-forfeitable dividend equivalent rights and are considered participating securities prior to being issued and outstanding shares of common stock in accordance with the two-class method used for purposes of calculating earnings per share.
(2)		Assumes the full exchange of the weighted average of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock, resulting in the elimination of the non-controlling interests and recognition of the net income attributable to non-controlling interests.

	Three Months Ended						Six Months Ended
Reconciliation of Operating Expenses to Adjusted Expenses	June 30,						June 30,
		2023			2022			2023			2022
	(in thousands)
Operating Expenses	$	194,278		$	190,531		$	400,961		$	390,415
Merger and acquisition transaction and integration costs ⁽¹⁾		(1,212	)		(15	)		(1,797	)		3
D&A related to acquisitions and the Refinitiv Transaction ⁽²⁾		(31,629	)		(31,761	)		(63,246	)		(63,530	)
Stock-based compensation expense ⁽³⁾		(585	)		(7,295	)		(1,435	)		(11,164	)
Foreign exchange gains / (losses) ⁽⁴⁾		964			3,066			(1,834	)		2,334
Adjusted Expenses	$	161,816		$	154,526		$	332,649		$	318,058

(1)		Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration.
(2)		Represents intangible asset and acquired software amortization resulting from the NFI Acquisition and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction).
(3)		Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options. During the three and six months ended June 30, 2022, this adjustment also includes $5.7 million and $7.4 million, respectively, of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our former CFO and former CEO.
(4)		Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity's functional currency.

	Trailing Twelve Months Ended June 30,
Reconciliation of Cash Flow from Operating Activities to Free Cash Flow		2023			2022
	(in thousands)
Cash flow from operating activities	$	693,446		$	597,330
Less: Capitalization of software development costs		(39,123	)		(35,767	)
Less: Purchases of furniture, equipment and leasehold improvements		(19,557	)		(23,158	)
Free Cash Flow	$	634,766		$	538,405

TRADEWEB MARKETS INC.

BASIC AND DILUTED EPS CALCULATIONS (UNAUDITED)

Dollars in Thousands, Except per Share Data

The following table summarizes the basic and diluted earnings per share calculations for Tradeweb Markets Inc.:

	Three Months Ended						Six Months Ended
EPS: Net income attributable to Tradeweb Markets Inc.	June 30,						June 30,
EPS: Net income attributable to Tradeweb Markets Inc.		2023			2022			2023			2022
	(in thousands, except share and per share amounts)
Numerator:
Net income attributable to Tradeweb Markets Inc.	$	89,082		$	68,344		$	176,938		$	151,309
Less: Distributed and undistributed earnings allocated to unvested RSUs and unsettled vested PRSUs ⁽¹⁾		(102	)		(26	)		(225	)		(53	)
Net income attributable to outstanding shares of Class A and Class B common stock - Basic and Diluted	$	88,980		$	68,318		$	176,713		$	151,256

Denominator:
Weighted average shares of Class A and Class B common stock outstanding - Basic		211,569,728			204,501,035			209,847,153			204,282,406
Dilutive effect of PRSUs		350,713			782,955			318,638			765,497
Dilutive effect of options		1,143,376			1,839,177			1,306,297			2,080,602
Dilutive effect of RSUs		92,936			149,508			187,726			242,867
Dilutive effect of PSUs		—			—			—			—
Weighted average shares of Class A and Class B common stock outstanding - Diluted		213,156,753			207,272,675			211,659,814			207,371,372

Earnings per share - Basic	$	0.42		$	0.33		$	0.84		$	0.74
Earnings per share - Diluted	$	0.42		$	0.33		$	0.83		$	0.73

(1)

During the three months ended June 30, 2023 and 2022, there was a total of 241,963 and 76,426, respectively, and during the six months ended June 30, 2023 and 2022, there was a total of 266,790 and 80,778, respectively, weighted average unvested RSUs and unsettled vested PRSUs that were considered a participating security for purposes of calculating earnings per share in accordance with the two-class method.


TRADEWEB MARKETS INC.
REVENUES BY ASSET CLASS (UNAUDITED)
	Three Months Ended
	June 30,
	2023				2022				$ Change						% Change
Revenues	Variable		Fixed		Variable		Fixed		Variable			Fixed			Variable		Fixed
	(dollars in thousands)
Rates	$	101,588	$	58,766	$	96,334	$	55,252	$	5,254		$	3,514		5.5	%	6.4	%
Credit		77,334		6,714		77,497		6,494		(163	)		220		(0.2	)%	3.4	%
Equities		19,866		2,280		20,409		2,250		(543	)		30		(2.7	)%	1.3	%
Money Markets		11,535		4,299		7,658		4,508		3,877			(209	)	50.6	%	(4.6	)%
Market Data		45		22,731		—		21,030		45			1,701		N/M		8.1	%
Other		—		5,455		—		5,706		—			(251	)	—		(4.4	)%
Total revenue	$	210,368	$	100,245	$	201,898	$	95,240	$	8,470		$	5,005		4.2	%	5.3	%

N/M = not meaningful


TRADEWEB MARKETS INC.
AVERAGE VARIABLE FEES PER MILLION DOLLARS OF VOLUME (UNAUDITED)
	Three Months Ended
	June 30,				YoY
		2023		2022	% Change
Rates	$	2.10	$	2.20	(4.4	)%
Rates Cash	$	2.44	$	2.27	7.7	%
Rates Derivatives	$	1.83	$	2.14	(14.5	)%
Rates Derivatives (greater than 1 year)	$	2.75	$	3.42	(19.6	)%
Other Rates Derivatives ⁽¹⁾	$	0.23	$	0.22	4.3	%

Credit	$	65.37	$	47.31	38.2	%
Cash Credit ⁽²⁾	$	151.91	$	155.56	(2.4	)%
Credit Derivatives and U.S. Cash "EP"	$	7.75	$	7.73	0.3	%

Equities	$	16.60	$	19.77	(16.0	)%
Equities Cash	$	26.59	$	29.20	(8.9	)%
Equities Derivatives	$	6.14	$	5.93	3.4	%

Money Markets	$	0.38	$	0.29	30.1	%

Total	$	2.60	$	2.78	(6.6	)%
Total excluding Other Rates Derivatives ⁽³⁾	$	2.92	$	3.14	(7.1	)%

(1)		Includes Swaps/Swaptions of tenor less than 1 year and Rates Futures.
(2)		The "Cash Credit" category represents the "Credit" asset class excluding (1) Credit Derivatives and (2) U.S. High Grade and High Yield electronically processed ("EP") activity.
(3)		Included to contextualize the impact of short-tenored Swaps/Swaptions and Rates Futures on totals for all periods presented.

TRADEWEB MARKETS INC.
AVERAGE DAILY VOLUME (UNAUDITED)
		2023 Q2				2022 Q2				YoY
Asset Class	Product	ADV (USD mm)		Volume (USD mm)		ADV (USD mm)		Volume (USD mm)		ADV
Rates	Cash	$	344,674	$	21,627,622	$	341,367	$	21,126,389	0.97	%
	U.S. Government Bonds		135,128		8,513,069		131,935		8,179,969	2.42	%
	European Government Bonds		40,694		2,482,305		35,439		2,161,809	14.83	%
	Mortgages		163,359		10,291,617		168,603		10,453,370	(3.11	)%
	Other Government Bonds		5,493		340,631		5,389		331,240	1.92	%
	Derivatives		429,285		26,633,837		367,604		22,616,932	16.78	%
	Swaps/Swaptions ≥ 1Y		273,533		16,961,570		221,191		13,602,492	23.66	%
	Swaps/Swaptions < 1Y		154,332		9,582,824		145,004		8,927,045	6.43	%
	Futures		1,420		89,443		1,410		87,395	0.76	%
	Total		773,959		48,261,458		708,971		43,743,321	9.17	%
Credit	Cash		10,627		662,558		10,196		626,277	4.23	%
	U.S. High Grade - Fully Electronic		3,960		249,509		3,260		202,106	21.49	%
U.S. High Grade - Electronically Processed			2,694		169,695		2,652		164,397	1.58	%
	U.S. High Yield - Fully Electronic		567		35,718		652		40,432	(13.06	)%
	U.S. High Yield - Electronically Processed		317		19,997		353		21,910	(10.18	)%
	European Credit		1,958		119,461		1,762		107,496	11.13	%
	Municipal Bonds		308		19,414		394		24,444	(21.84	)%
	Chinese Bonds		720		42,505		1,001		58,041	(28.01	)%
	Other Credit Bonds		101		6,259		122		7,449	(16.57	)%
	Derivatives		8,362		520,513		16,477		1,013,032	(49.25	)%
	Swaps		8,362		520,513		16,477		1,013,032	(49.25	)%
	Total		18,989		1,183,072		26,673		1,639,309	(28.81	)%
Equities	Cash		9,913		612,223		9,945		613,843	(0.32	)%
	U.S. ETFs		7,547		467,926		7,202		446,499	4.80	%
	European ETFs		2,366		144,297		2,743		167,344	(13.77	)%
	Derivatives		9,444		584,528		6,761		418,547	39.67	%
	Convertibles/Swaps/Options		6,340		392,306		3,273		202,579	93.69	%
	Futures		3,103		192,221		3,488		215,968	(11.02	)%
	Total		19,356		1,196,751		16,706		1,032,390	15.86	%
Money Markets	Cash		484,307		30,339,463		423,984		26,205,599	14.23	%
	Repurchase Agreements (Repo)		465,958		29,184,597		405,652		25,069,414	14.87	%
	Other Money Markets		18,349		1,154,866		18,332		1,136,185	0.09	%
	Total		484,307		30,339,463		423,984		26,205,599	14.23	%

		ADV (USD mm)		Volume (USD mm)		ADV (USD mm)		Volume (USD mm)		YoY
	Total	$	1,296,611	$	80,980,743	$	1,176,333	$	72,620,618	10.20	%

To access historical traded volumes, go to https://www.tradeweb.com/newsroom/monthly-activity-reports/

BASIS OF PRESENTATION

Tradeweb Markets Inc. (unless the context otherwise requires, together with its subsidiaries, referred to as "we," "our," "Tradeweb," "Tradeweb Markets" or the "Company") closed its IPO on April 8, 2019. As a result of certain reorganization transactions (the "Reorganization Transactions") completed in connection with the IPO, on April 4, 2019, Tradeweb Markets Inc. became a holding company whose only material assets consist of its equity interest in Tradeweb Markets LLC ("TWM LLC") and related deferred tax assets. As the sole manager of TWM LLC, Tradeweb Markets Inc. operates and controls all of the business and affairs of TWM LLC and, through TWM LLC and its subsidiaries, conducts its business. As a result of this control, and because Tradeweb Markets Inc. has a substantial financial interest in TWM LLC, Tradeweb Markets Inc. consolidates the financial results of TWM LLC and its subsidiaries.

Numerical figures included in this release have been subject to rounding adjustments and as a result totals may not be the arithmetic aggregation of the amounts that precede them and figures expressed as percentages may not total 100%.

Please refer to the Company's previously filed Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for capitalized terms not otherwise defined herein.

UNAUDITED INTERIM RESULTS

The interim financial results presented herein for the three and six months ended June 30, 2023 and 2022 are unaudited. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our guidance, including full-year 2023 guidance, 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 the documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. 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 release are not guarantees of future events or performance and future events, 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 release. In addition, even if future events, 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 release, they may not be predictive of events, results or developments in future periods. Any forward-looking statement that we make in this release 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 release.

NON-GAAP FINANCIAL MEASURES

This release contains "non-GAAP financial measures," including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Net Income per diluted share ("Adjusted Diluted EPS"), Adjusted Expenses, Free Cash Flow and constant currency change, which are supplemental financial measures that are not calculated and presented in accordance with GAAP. We make use of non-GAAP financial measures in evaluating our past results and future prospects. We present these non-GAAP financial measures 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.

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 included in Adjusted Net Income and Adjusted Diluted EPS help 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.

We use Adjusted Expenses as a supplemental metric to evaluate our underlying operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses.

We use Free Cash Flow to assess our liquidity in a way that considers the amount of cash generated from our core operations after non-acquisition related expenditures for capitalized software development costs and furniture, equipment and leasehold improvements.

We present certain changes on a "constant currency" basis. Since our consolidated financial statements are presented in U.S. dollars, we must translate non-U.S. dollar revenues and expenses into U.S. dollars. Constant currency change, which is a non-GAAP financial measure, is defined as change excluding the effects of foreign currency fluctuations. Constant currency information is calculated by translating the current period and prior period's results using the annual average exchange rates for the prior period. We use constant currency change as a supplemental metric to evaluate our underlying performance between periods by removing the impact of foreign currency fluctuations. We present certain constant currency change information because we believe it provides investors and analysts a useful comparison of our results and trends between periods. This information should be considered in addition to, not as a substitute for, results reported in accordance with GAAP.

See the attached schedules for reconciliations of the non-GAAP financial measures contained in this release to their most comparable GAAP financial measure. Non-GAAP financial measures have limitations as analytical tools, and you should not consider these non-GAAP financial measures in isolation or as alternatives to net income attributable to Tradeweb Markets Inc., net income, net income margin, earnings per share, operating income, operating expenses, cash flow from operating activities or any other financial measure prepared or derived in accordance with GAAP. You are encouraged to evaluate each adjustment included in the reconciliations. In addition, in evaluating Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted EBT, Adjusted Net Income, Adjusted Diluted EPS, Adjusted Expenses and Free Cash Flow, you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of these non-GAAP financial measures.

Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures contained in this release may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

MARKET AND INDUSTRY DATA

This release includes estimates regarding market and industry data that we prepared based on our management's knowledge and experience in the markets in which we operate, together with information obtained from various sources, including publicly available information, industry reports and publications, surveys, our clients, trade and business organizations and other contacts in the markets in which we operate. In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and we take no responsibility for such information.

TRADEWEB SOCIAL MEDIA

Investors and others should note that Tradeweb announces material financial and operational information using its investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about Tradeweb, its business and its results of operations may also be announced by posts on the Company'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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727189434/en/

Tradeweb Reports Second Quarter 2023 Financial Results