Tradeweb Markets has released its financial results for the second quarter of 2024, highlighting substantial revenue growth and high trading volumes. The company's revenue reached $405 million, representing a 30% increase in quarterly revenue. This was driven by a 48% surge in average daily volume (ADV) to $1.9 trillion.
US Government Bonds ADV
Tradeweb achieved notable milestones during the quarter, including record ADV in US government bonds, fully electronic US high-yield credit, and global repurchase agreements. It also captured a significant 18.8% share in fully electronic US high-grade TRACE.
Speaking about the quarterly results, Billy Hult, the CEO of Tradeweb, said: "We delivered strong organic growth complemented by continued investment in our multi-asset class, global business, resulting in a 30.4% revenue increase year-over-year in Q2 2024." Hult also highlighted the company’s initiatives, such as connecting repo and IRS markets and expanding partnerships with FTSE Russell and Alphaledger.
Additionally, Tradeweb announced the acquisition of Institutional Cash Distributors (ICD) for $785 million, which will introduce corporate treasuries as a new client channel. The company also invested $10 million in Securitize and entered into a commercial agreement with Alphaledger to develop blockchain-based financial products.
Quarterly Cash Dividend
Tradeweb is set to move its headquarters to a new NYC location under a $159.2 million lease, expected to begin in mid-2025. The company also declared a quarterly cash dividend of $0.10 per share. Tradeweb’s strong Q2 performance is supported by $1.7 billion in cash and cash equivalents, alongside an undrawn $500 million credit facility.
The acquisition of ICD is anticipated to close in Q3 2024, funded with existing cash reserves. Free cash flow for the trailing twelve months increased by 13.7% to $721.7 million.
In June, Tradeweb Markets announced that its total trading volume for June amounted to $37.5 trillion, with average daily volume (ADV) rising to $1.94 trillion. This marked a 40.9% YoY. The trading volumes experienced a modest 2% increase from $1.9 trillion.
The firm's second-quarter results were equally strong, with total trading volume reaching $121 trillion and ADV reaching $1.92 trillion, up 48.3% compared to the same period last year. Preliminary average variable fees per million dollars of volume were $2.43.
