Tradeweb Markets Inc. (NASDAQ:TW), a global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the fourth quarter and full year ended December 31, 2022.
The company posted $293.0 million of revenues for the final quarter of 2022, an increase of 5.8% (9.3% on a constant currency basis) compared to the prior year period.
The Equities segment generated revenues of $23.0 million in the fourth quarter of 2022, an increase of 25.3% compared to prior year period. Equities ADV was up 7.8% with record ADV in U.S. institutional ETFs. Equities performance reflected increased adoption of request-for-quote (RFQ) for electronic trading in ETFs globally.
The Money Markets segment saw revenues of $13.3 million in the fourth quarter of 2022, up 21.8% compared to prior year period (up 24.1% on a constant currency basis). Money Markets ADV was up 14.3% led by record ADV in retail money markets and continued client adoption of Tradeweb’s electronic trading solutions.
The Market Data segment generated revenues of $22.3 million in the fourth quarter of 2022, up 3.0% compared to prior year period (the rise was 5.0% on a constant currency basis). The increase was derived primarily from increased third party market data fees and Refinitiv market data fees.
Tradeweb posted net income of $99.0 million for the quarter, up 65.0% from prior year period primarily due to lower tax expense related to changes in Tradeweb’s deferred tax assets and an increase in interest income.
The company declared a $0.09 per share quarterly cash dividend, a 12.5% per share increase from prior year.
Billy Hult, CEO of Tradeweb:
“Tradeweb reported its 23rd consecutive year of revenue growth in 2022. The breadth of our business played an important role in these results, as we helped clients navigate interest rate volatility, geopolitical risk, a strong U.S. dollar and fear of a global recession. 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.
Continued momentum in credit and equities contributed to our overall growth story, accounting for 61% and 29% of our fourth quarter revenue growth, respectively. In December, we announced an exciting partnership with BlackRock’s Aladdin to facilitate further electronification of credit trading.
I am thrilled to take the helm as CEO and to welcome Tom Pluta as Tradeweb’s new President. Our leadership team and employees are energized for the next wave of growth, and we believe we’re well positioned to continue to drive growth and increase market share.”
