Tradeweb Markets : Reports First Quarter 2021 Financial Results

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 March 31, 2021.

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Tradeweb CEO Lee Olesky (Photo: Business Wire)

$273.4 million quarterly revenues increased 16.5% (13.9% on a constant currency basis) compared to prior year period

$1.06 trillion record average daily volume (“ADV”) for the quarter, an increase of 18.0% compared to prior year period with ADV records in U.S. and European government bonds, mortgages, rates derivatives, U.S. High Grade bonds, U.S. High Yield bonds, European Credit, Chinese bonds, Repurchase Agreements and European ETFs. Tradeweb share of fully electronic TRACE volume for the quarter was 10.1% for U.S. High Grade and 4.0% for U.S. High Yield, compared to 5.9% and 2.0% respectively in prior year period

$81.6 million net income and $101.6 million adjusted net income for the quarter, increases of 30.5%, and 19.0% respectively from prior year period

52.0% adjusted EBITDA margin or $142.1 million adjusted EBITDA for the quarter, compared to 51.0% or $119.7 million respectively for prior year period

$0.33 diluted earnings per share (“Diluted EPS”) for the quarter and $0.43 adjusted diluted earnings per share

$0.08 per share quarterly cash dividend declared

Lee Olesky, CEO of Tradeweb Markets:

“Tradeweb experienced sustained momentum throughout the first quarter of 2021 thanks in part to stronger client engagement, changing user behaviors and accelerated trends in electronic trading adoption and innovation. We averaged more than $1 trillion per day in trading volume during each of these three months, which was especially remarkable given the quarter’s relatively subdued volatility. Our first quarter’s record volume was driven by changing behaviors, which we believe will continue to fuel our growth over the long term.”

SELECT FINANCIAL RESULTS	1Q21			1Q20			Change		Constant Currency Growth(1)
(dollars in thousands except per share amounts)(Unaudited)
GAAP Financial Measures
Total revenue	$	273,399		$	234,606		16.5	%	13.9		%
Rates	$	142,929		$	126,039		13.4	%	10.7		%
Credit	$	74,368		$	53,978		37.8	%	35.0		%
Equities	$	18,861		$	19,434		(2.9)	%	(7.1)		%
Money Markets	$	10,818		$	11,208		(3.5)	%	(5.0)		%
Market Data	$	19,972		$	18,562		7.6	%	6.3		%
Other	$	6,451		$	5,385		19.8	%	19.8		%
Net income	$	81,565		$	62,485		30.5	%
Net Income attributable to Tradeweb Markets Inc.(2)	$	67,859		$	43,928		54.5	%
Diluted EPS	$	0.33		$	0.25		32.0	%
Non-GAAP Financial Measures
Adjusted EBITDA (1)	$	142,084		$	119,650		18.7	%	18.5		%
Adjusted EBITDA margin (1)	52.0		%	51.0		%	+97	bps	+201		bps
Adjusted EBIT (1)	$	130,721		$	108,747		20.2	%	20.0		%
Adjusted EBIT margin (1)	47.8		%	46.4		%	+146	bps	+243		bps
Adjusted Net Income (1)	$	101,578		$	85,368		19.0	%	18.7		%
Adjusted Diluted EPS (1)	$	0.43		$	0.37		16.2	%	16.2		%

(1) Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Diluted EPS and constant currency growth 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	1Q21			1Q20			YoY
Rates	Cash	$	378		$	342		10.8	%
	Derivatives	287			249			15.4	%
	Total	666			591			12.7	%
Credit	Cash	10			7			43.1	%
	Derivatives	17			26			(35.2)	%
	Total	27			33			(18.0)	%
Equities	Cash	9			9			(2.2)	%
	Derivatives	7			9			(16.6)	%
	Total	16			18			(9.1)	%
Money Markets	Cash	350			256			36.7	%
	Total	350			256			36.7	%
	Total	$	1,059		$	897		18.0	%

DISCUSSION OF RESULTS

Rates – Revenues of $142.9 million in the first quarter of 2021 increased 13.4% compared to prior year period (10.7% on a constant currency basis). Higher global issuance and increased client adoption drove higher volumes in government bonds, mortgages and swaps. Government bond trading saw growth in execution via streams and session-based trading, while swaps saw growth in RFM List trading and Emerging Markets IRS.

Credit – Revenues of $74.4 million in the first quarter of 2021 increased 37.8% compared to prior year period (35.0% on a constant currency basis). U.S. and European corporate bond trading volumes grew to record levels. Corporate bond client activity was strong across trading protocols, most notably in global portfolio trading, as well as Tradeweb AllTrade with anonymous all-to-all and session-based trading being highlights. CDS volumes, which carry a lower fee per million than overall credit, decreased as volatility declined from unprecedented levels seen last year.

Equities – Revenues of $18.9 million in the first quarter of 2021 decreased 2.9% compared to prior year period (7.1% on a constant currency basis). Continued growth in institutional equities driven by new client adoption and higher AiEX activity was more than offset by lower volumes and revenue in wholesale ETFs as lower equity market volatility weighed on overall activity.

Money Markets – Revenues of $10.8 million in the first quarter of 2021 decreased 3.5% compared to prior year period (5.0% on a constant currency basis). Growth in institutional repo driven by the addition of new dealers and participants was more than offset by continued pressure on retail money markets activity due to the low interest rate environment.

Market Data – Revenues of $20.0 million in the first quarter of 2021 increased 7.6% compared to prior year period (6.3% on a constant currency basis) due to delivery of additional data under our market data license agreements with Refinitiv.

Other – Revenues of $6.5 million in the first quarter of 2021 increased 19.8% compared to prior year period (19.8% on a constant currency basis).

Operating Expenses – Operating expenses of $175.1 million in the first quarter of 2021 increased 11.5% compared to $157.0 million in the prior year period due to: higher employee compensation and benefits expense; higher depreciation and amortization expense; and higher technology and communications expense. Adjusted Expenses of $142.7 million increased 13.4% (8.8% on a constant currency basis) compared to the prior year period due to: higher employee compensation and benefits expense associated with performance-related compensation and higher headcount to support growth; higher technology and communications expense; and the adverse impact of foreign exchange. Please see "Non-GAAP Financial Measures" below for additional information.

RECENT HIGHLIGHTS

First Quarter 2021

• Agreed to acquire Nasdaq’s U.S. fixed income electronic trading platform (formerly known as eSpeed) for $190 million in cash
• Launched Multi-Client Net Spotting, a new tool that significantly enhances how credit market participants access the U.S. Treasury market to hedge their risk
• Completed first-ever fully electronic standardized total return swap trade based on IHS Markit’s iBoxx USD Liquid High Grade Index
• Appointed Von M. Hughes, Partner and Managing Director of PAAMCO Prisma, to the Board of Directors as an independent director and Murray Roos, Group Head of Capital Markets for London Stock Exchange Group, to the Board of Directors
• Appointed James Sun as Managing Director, Head of Asia
• Recognized in numerous awards including: Impact Innovation Awards, Customer Experience – Portfolio Trading (Aite); Digital Initiative of the Year – AiEX (The TRADE); Best ETF Platform (ETF Express); Market Data Professional of the Year – Lisa Schirf (WatersTechnology); and Vendor Professional of the Year, Trading and Risk – Zara Pratley (WatersTechnology)

April 2021

• Joined the Climate Bonds Initiative’s Partners Program, a global movement seeking to mobilize bond markets for climate change solutions, and announced that Climate Bonds Initiative-screened Green bonds accounted for $79 billion of trading volume executed on Tradeweb in 2020, an increase of 65% over 2019 volumes
• Announced collaboration with Amazon Web Services to broaden access to Tradeweb U.S. Treasury and U.K. Gilt closing price data through AWS Data Exchange, making it easier to find, subscribe to, and use third-party data in the cloud
• Recognized in numerous awards including: Best Swap Execution Facility (WatersTechnology); Best Fixed Income Trading Platform (Markets Media); and Rising Star – Chika Nwafor (Markets Media)

CAPITAL MANAGEMENT

• $809.9 million in cash and cash equivalents and an undrawn $500 million credit facility at March 31, 2021
• Capital expenditures and capitalization of software development: $12.6 million
• Free cash flow for the trailing twelve months ended March 31, 2021 of $473.8 million, up 78.3% year over year. See “Non-GAAP Financial Measures” for additional information
• The Board of Directors of Tradeweb Markets Inc. declared a quarterly cash dividend of $0.08 per share of Class A common stock and Class B common stock. The dividend will be payable on June 15, 2021 to stockholders of record as of June 1, 2021

OTHER MATTERS

Updated Full-Year 2021 Guidance*

• Adjusted Expenses: $530 - $560 million (upper half of range)
  • Non-GAAP adjusted expense guidance does not include any expenses tied to our pending acquisition of Nasdaq’s U.S. fixed income electronic trading platform. We will update our guidance following the closing of the deal.
• Acquisition and Refinitiv Transaction related depreciation and amortization expense: $120 million
• Assumed non-GAAP tax rate: 22.0%
• Capital expenditures and capitalization of software development: $45 - $50 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.

CONFERENCE CALL

Tradeweb Markets will hold a conference call to discuss first quarter 2021 results starting at 9:30 AM EDT today, April 29, 2021. A live, audio webcast of the conference call along with related materials will be available at http://investors.tradeweb.com. Alternatively, interested parties can access the call by dialing 866-221-1629 (U.S.) or [phone] (international) and entering passcode 3446984. After the conference call, an archived recording will be available at http://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 $870 billion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

TRADEWEB MARKETS INC.
INCOME STATEMENT
Dollars in Thousands, Except Per Share Data

		Quarter Ended March 31,
		2021					2020
Revenues			(unaudited)					(unaudited)
Transaction fees and commissions		$	217,816				$	183,317
Subscription fees			37,868					34,483
Refinitiv market data fees			15,117					14,628
Other			2,598					2,178
Total revenue			273,399					234,606
Expenses
Employee compensation and benefits			103,622					90,520
Depreciation and amortization			40,966					37,176
Technology and communications			13,544					10,318
General and administrative			3,459					8,340
Professional fees			9,728					6,911
Occupancy			3,753					3,726
Total expenses			175,072					156,991
Operating income			98,327					77,615
Net interest income (expense)			(493)					699
Income before taxes			97,834					78,314
Provision for income taxes			(16,269)					(15,829)
Net income		$	81,565				$	62,485
Less: Net income attributable to non-controlling interests			13,706					18,557
Net income attributable to Tradeweb Markets Inc.		$	67,859				$	43,928
Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders:
Basic		$	0.34				$	0.26
Diluted		$	0.33				$	0.25
Weighted average shares outstanding:
Basic			199,064,607					166,234,749
Diluted			205,028,717					174,517,244

TRADEWEB MARKETS INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
Dollars in Thousands, Except per Share Data

Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted EBIT Margin		Quarter Ended March 31,
		2021				2020
		(dollars in thousands)
Net income		$	81,565			$	62,485
Acquisition transaction costs (1)		1,761				—
Net interest (income) expense		493				(699)
Depreciation and amortization		40,966				37,176
Stock-based compensation expense (2)		6,383				3,497
Provision for income taxes		16,269				15,829
Foreign exchange (gains)/losses (3)		(5,353)				1,362
Tax receivable agreement liability adjustment (4)		—				—
Adjusted EBITDA		$	142,084			$	119,650
Less: Depreciation and amortization		(40,966)				(37,176)
Add: Acquisition and Refinitiv Transaction related D&A (5)		29,603				26,273
Adjusted EBIT		$	130,721			$	108,747
Adjusted EBITDA margin (6)		52.0		%		51.0		%
Adjusted EBIT margin (6)		47.8		%		46.4		%

(1)		Represents acquisition-related transaction costs associated with the pending acquisition of Nasdaq’s U.S. fixed income electronic trading platform (formerly known as eSpeed) announced in February 2021.
(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 exercises of such options during the applicable period.
(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 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 acquisition-related intangibles amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the Refinitiv Transaction and the application of pushdown accounting (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction).
(6)		Adjusted EBITDA margin and Adjusted EBIT margin are defined as Adjusted EBITDA and Adjusted EBIT, respectively, divided by revenue for the applicable period.

Reconciliation of Net Income to		Quarter Ended March 31,
Adjusted Net Income and Adjusted Diluted EPS		2021					2020
		(in thousands, except per share amounts)
Earnings per diluted share		$	0.33				$	0.25
Net income attributable to Tradeweb Markets Inc.		$	67,859				$	43,928
Net income attributable to non-controlling interests (1)		13,706					18,557
Net income		81,565					62,485
Provision for income taxes		16,269					15,829
Acquisition transaction costs (2)		1,761					—
Acquisition and Refinitiv Transaction related D&A (3)		29,603					26,273
Stock-based compensation expense (4)		6,383					3,497
Foreign exchange (gains) / losses (5)		(5,353)					1,362
Tax receivable agreement liability adjustment (6)		—					—
Adjusted Net Income before income taxes		130,228					109,446
Adjusted income taxes (7)		(28,650)					(24,078)
Adjusted Net Income		$	101,578				$	85,368
Adjusted Diluted EPS (8)		$	0.43				$	0.37

(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 acquisition-related transaction costs associated with the pending acquisition of Nasdaq’s U.S. fixed income electronic trading platform (formerly known as eSpeed) announced in February 2021.
(3)		Represents acquisition-related intangibles amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the Refinitiv Transaction and the application of pushdown accounting (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 the post-IPO options awarded in 2019 and payroll taxes associated with exercises of such options during the applicable period.
(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 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 22.0% applied to Adjusted Net Income before income taxes for each of the quarters ended March 31, 2021 and 2020.
(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” below.

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

		Quarter Ended March 31,
Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding		2021				2020
Diluted weighted average shares of Class A and Class B common stock outstanding		205,028,717				174,517,244
Assumed exchange of LLC interests for shares of Class A or Class B common stock (1)		31,214,407				57,644,547
Adjusted diluted weighted average shares outstanding		236,243,124				232,161,791
Adjusted Net Income (in thousands)		$	101,578			$	85,368
Adjusted Diluted EPS		$	0.43			$	0.37

(1)

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.

Reconciliation of Operating Expenses to Adjusted Expenses		Quarter Ended March 31,
		2021				2020
		(in thousands)
Operating Expenses		$	175,072			$	156,991
Acquisition transaction costs(1)		(1,761)				—
Acquisition and Refinitiv Transaction related D&A(2)		(29,603)				(26,273)
Stock-based compensation expense(3)		(6,383)				(3,497)
Foreign exchange gains / (losses)(4)		5,353				(1,362)
Adjusted Expenses		$	142,678			$	125,859

(1)		Represents acquisition-related transaction costs associated with the pending acquisition of Nasdaq’s U.S. fixed income electronic trading platform (formerly known as eSpeed) announced in February 2021.
(2)		Represents acquisition-related intangibles amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the Refinitiv Transaction and the application of push down accounting (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 the payroll taxes associated with exercises of such options during the applicable period.
(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.

Reconciliation of Cash Flows from Operating Activities to Free Cash Flow		Trailing Twelve Months Ended March 31, 2021
		(in thousands)
Cash flow from operating activities		$	520,564
Less: Capitalization of software development costs		(32,249)
Less: Purchases of furniture, equipment and leasehold improvements		(14,551)
Free Cash Flow		$	473,764

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.:

EPS: Net income attributable to Tradeweb Markets Inc.		Quarter Ended March 31,
		2021				2020
		(in thousands, except share and per share amounts)
Numerator:
Net income attributable to Tradeweb Markets Inc.		$	67,859			$	43,928
Denominator:
Weighted average shares of Class A and Class B common stock outstanding - Basic		199,064,607				166,234,749
Dilutive effect of equity-settled PRSUs		1,832,308				2,038,422
Dilutive effect of options		3,851,594				6,221,549
Dilutive effect of RSUs		280,208				22,524
Weighted average shares of Class A and Class B common stock outstanding - Diluted		205,028,717				174,517,244
Earnings per share - Basic		$	0.34			$	0.26
Earnings per share - Diluted		$	0.33			$	0.25

TRADEWEB MARKETS INC.
GROSS REVENUES BY ASSET CLASS (UNAUDITED)

		Quarter Ended								Quarter Ended
		March 31, 2021								March 31, 2020								$ Change								% Change
Revenues		Variable				Fixed				Variable				Fixed				Variable				Fixed				Variable			Fixed
		(dollars in thousands)
Rates		$	89,651			$	53,278			$	75,541			$	50,498			$	14,110			$	2,780			18.7	%		5.5	%
Credit		67,998				6,370				48,575				5,403				19,423				967				40.0	%		17.9	%
Equities		15,980				2,881				17,100				2,334				(1,120)				547				(6.5)	%		23.4	%
Money Markets		6,713				4,105				7,137				4,071				(424)				34				(5.9)	%		0.8	%
Market Data		—				19,972				—				18,562				—				1,410				—			7.6	%
Other		—				6,451				—				5,385				—				1,066				—			19.8	%
Total revenue		$	180,342			$	93,057			$	148,353			$	86,253			$	31,989			$	6,804			21.6	%		7.9	%

TRADEWEB MARKETS INC.
AVERAGE VARIABLE FEES PER MILLION DOLLARS OF VOLUME (UNAUDITED)

		Quarter Ended March 31,								YoY
		2021				2020				% Change
Rates		$	2.19			$	2.05			6.9	%
Cash Rates		$	1.91			$	1.90			0.3	%
Rates Derivatives		$	2.56			$	2.25			13.9	%
Swaps / Swaptions Tenor (greater than 1 year)		$	3.90			$	3.42			13.8	%
Other Rates Derivatives (1)		$	0.26			$	0.16			58.6	%
Credit		$	40.81			$	23.46			74.0	%
Cash Credit (2)		$	135.45			$	132.79			2.0	%
Credit Derivatives and U.S. Cash 'EP'		$	6.33			$	6.18			2.4	%
Equities		$	16.05			$	15.38			4.3	%
Cash Equities		$	23.63			$	23.88			(1.1)	%
Equity Derivatives		$	6.46			$	6.20			4.2	%
Money Markets (Cash)		$	0.31			$	0.45			(30.3)	%
Total Fees per Million		$	2.77			$	2.65			4.6	%
Total Fees per Million excluding Other Rates Derivatives (3)		$	3.05			$	2.93			4.2	%

(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 blended fees per million across all periods presented.

TRADEWEB MARKETS INC.
AVERAGE DAILY VOLUME (UNAUDITED)

			2021 Q1							2020 Q1							YoY
Asset Class	Product		ADV (USD mm)			Volume (USD mm)				ADV (USD mm)			Volume (USD mm)				ADV
Rates	Cash		$	378,323		$	23,143,506			$	341,557		$	21,229,660			10.76	%
	U.S. Government Bonds		114,948			7,011,839				93,518			5,798,129				22.92	%
	European Government Bonds		31,613			1,991,631				28,119			1,799,627				12.43	%
	Mortgages		226,368			13,808,475				214,947			13,326,710				5.31	%
	Other Government Bonds		5,393			331,561				4,973			305,194				8.45	%
	Derivatives		287,477			17,771,122				249,209			15,638,402				15.36	%
	Swaps/Swaptions ≥ 1Y		182,088			11,262,405				159,508			10,013,379				14.16	%
	Swaps/Swaptions < 1Y		104,542			6,457,053				89,091			5,587,159				17.34	%
	Futures		847			51,663				611			37,865				38.67	%
	Total		665,801			40,914,628				590,767			36,868,062				12.70	%
Credit	Cash		10,382			632,748				7,255			449,796				43.09	%
	U.S. High Grade		5,574			340,005				3,906			242,142				42.72	%
	U.S. High Yield		821			50,086				486			30,134				68.94	%
	European Credit		2,066			130,133				1,658			106,115				24.58	%
	Municipal Bonds		204			12,465				289			17,902				(29.23)	%
	Chinese Bonds		1,594			92,437				857			49,715				85.93	%
	Other Credit Bonds		123			7,621				60			3,788				105.40	%
	Derivatives		16,690			1,033,323				25,741			1,620,991				(35.16)	%
	Swaps		16,690			1,033,323				25,741			1,620,991				(35.16)	%
	Total		27,071			1,666,070				32,996			2,070,787				(17.96)	%
Equities	Cash		9,021			556,255				9,225			577,340				(2.21)	%
	U.S. ETFs		6,046			368,813				6,527			404,658				(7.36)	%
	Europe ETFs		2,975			187,442				2,698			172,683				10.27	%
	Derivatives		7,155			439,435				8,576			534,392				(16.56)	%
	Options/Convertibles/Swaps		3,054			189,032				3,973			248,646				(23.15)	%
	Futures		4,102			250,403				4,602			285,746				(10.88)	%
	Total		16,177			995,690				17,800			1,111,733				(9.12)	%
Money Markets	Cash		349,528			21,474,787				255,732			15,919,960				36.68	%
	Repurchase Agreements (Repo)		335,531			20,619,367				236,750			14,740,541				41.72	%
	Other Money Markets		13,996			855,420				18,982			1,179,419				(26.27)	%
	Total		349,528			21,474,787				255,732			15,919,960				36.68	%
			ADV (USD mm)			Volume (USD mm)				ADV (USD mm)			Volume (USD mm)				YoY
	Total		$	1,058,576		$	65,051,175			$	897,295		$	55,970,541			17.97	%

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

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 2021 guidance, 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. In addition, statements herein relating to the COVID-19 pandemic, the potential impacts of which remain 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, including those discussed under the heading “Risk Factors” in 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 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 release. 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 release, they may not be predictive of 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.

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.

TRADEWEB SOCIAL MEDIA

Investors and others should note that Tradeweb Markets announces material financial and operational information using its investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about Tradeweb Markets, 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 Markets to monitor these social media channels in addition to following our 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.

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 Diluted EPS, Adjusted Expenses and Free Cash Flow, which are supplemental financial measures that are not calculated or 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 expenditures for capitalized software development costs and furniture, equipment and leasehold improvements.

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, earnings per share, operating income, operating expenses or cash flow from operating activities or any other financial measure 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 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.

We present certain growth information 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 growth, which is a non-GAAP financial measure, is defined as growth excluding the effects of foreign currency fluctuations. Constant currency information is calculated by translating the current period and prior period’s results using the average exchange rates for the prior period. We use constant currency growth as a supplemental metric to evaluate our underlying performance between periods by removing the impact of foreign currency fluctuations. We present certain constant currency growth 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, and may not be comparable to similarly titled measures used by other companies.

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