Tradeweb Markets Inc. Files Q2 2024 10-Q

TL;DR

**Tradeweb Q2 10-Q is in! Financials and ops details out now.**

AI Summary

Tradeweb Markets Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial metrics and business segment revenues are presented, reflecting the company's ongoing activities in the financial services sector.

Why It Matters

This filing provides investors and analysts with the latest financial results and operational details for Tradeweb Markets Inc., crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not inherently present new, immediate risks.

Key Numbers

• N/A — Transaction Fee Revenue (Specific dollar amounts for revenue are not detailed in the provided snippet.)

Key Players & Entities

• Tradeweb Markets Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240725 (date) — Filing date

FAQ

Key Financial Figures

• $0.00001 — tered Class A common stock, par value $0.00001 TW Nasdaq Global Select Market Indi
• $500.0 million — sult of covenant restrictions under our $500.0 million senior unsecured revolving credit facil

Filing Documents

• tw-20240630.htm (10-Q) — 2458KB
• twm-2024x06x30xexx101.htm (EX-10.1) — 51KB
• twm-2024x06x30xexx102.htm (EX-10.2) — 66KB
• twm-2024x06x30xexx311.htm (EX-31.1) — 10KB
• twm-2024x06x30xexx312.htm (EX-31.2) — 10KB
• twm-2024x06x30xexx321.htm (EX-32.1) — 4KB
• twm-2024x06x30xexx322.htm (EX-32.2) — 4KB
• 0001758730-24-000156.txt ( ) — 10927KB
• tw-20240630.xsd (EX-101.SCH) — 65KB
• tw-20240630_cal.xml (EX-101.CAL) — 89KB
• tw-20240630_def.xml (EX-101.DEF) — 416KB
• tw-20240630_lab.xml (EX-101.LAB) — 762KB
• tw-20240630_pre.xml (EX-101.PRE) — 580KB
• tw-20240630_htm.xml (XML) — 1660KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 8 Condensed Consolidated Statements of Financial Condition as of June 30, 2024 and December 31, 2023 8 Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 9 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 10 Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2024 and 2023 11 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 13 Notes to Condensed Consolidated Financial Statements 15 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 79 Item 4.

Controls and Procedures

Controls and Procedures 81

— OTHER INFORMATION

PART II — OTHER INFORMATION 82 Item 1.

Legal Proceedings

Legal Proceedings 82 Item 1A.

Risk Factors

Risk Factors 82 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 82 Item 3. Defaults Upon Senior Securities 82 Item 4. Mine Safety Disclosures 82 Item 5. Other Information 82 Item 6. Exhibits 84

Signatures

Signatures 85 2 Table of Contents INTRODUCTORY NOTE The financial statements and other disclosures contained in this report include those of Tradeweb Markets Inc., which is the registrant, and those of its consolidating subsidiaries, including Tradeweb Markets LLC, which became the principal operating subsidiary of Tradeweb Markets Inc. on April 4, 2019 in a series of reorganization transactions (the "Reorganization Transactions") that were completed in connection with Tradeweb Markets Inc.'s initial public offering (the "IPO"), which closed on April 8, 2019. As a result of the Reorganization Transactions completed in connection with the IPO, Tradeweb Markets Inc. became a holding company whose only material assets consist of its equity interest in Tradeweb Markets LLC and related deferred tax assets. As the sole manager of Tradeweb Markets LLC, Tradeweb Markets Inc. operates and controls all of the business and affairs of Tradeweb Markets LLC and, through Tradeweb Markets LLC and its subsidiaries, conducts its business. As a result of this control, and because Tradeweb Markets Inc. has a substantial financial interest in Tradeweb Markets LLC, Tradeweb Markets Inc. consolidates the financial results of Tradeweb Markets LLC and its subsidiaries. As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires, references to: "We," "us," "our," the "Company," "Tradeweb" and similar references refer: (i) on or prior to the completion of the Reorganization Transactions to Tradeweb Markets LLC, which we refer to as "TWM LLC," and, unless otherwise stated or the context otherwise requires, all of its subsidiaries and any predecessor entities, and (ii) following the completion of the Reorganization Transactions to Tradeweb Markets Inc., and, unless otherwise stated or the context otherwise requires, its subsidiaries, including TWM LLC and all of its subsidiaries, and any predecessor entities. "Bank Stockholders " refer collectively to entiti

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Tradeweb Markets Inc. and Subsidiaries Condensed Consolidated Statements of Financial Condition (dollars in thousands, except per share amounts) (Unaudited) June 30, December 31, 2024 2023 Assets Cash and cash equivalents $ 1,718,230 $ 1,706,468 Restricted cash 1,000 1,000 Receivable from brokers and dealers and clearing organizations 432,037 381,178 Deposits with clearing organizations 62,694 36,806 Accounts receivable, net of allowance for credit losses of $ 158 and $ 284 at June 30, 2024 and December 31, 2023, respectively 233,084 168,407 Furniture, equipment, purchased software and leasehold improvements, net of accumulated depreciation and amortization 32,456 33,559 Lease right-of-use assets 25,662 25,206 Software development costs, net of accumulated amortization 151,418 131,332 Goodwill 2,857,713 2,815,524 Intangible assets, net of accumulated amortization 1,004,116 1,004,797 Receivable and due from affiliates 2,980 192 Deferred tax asset 684,200 684,250 Other assets 78,951 70,819 Total assets $ 7,284,541 $ 7,059,538 Liabilities and Equity Liabilities Securities sold under agreements to repurchase $ — $ 21,612 Payable to brokers and dealers and clearing organizations 424,751 351,864 Accrued compensation 119,270 164,329 Deferred revenue 28,174 25,746 Accounts payable, accrued expenses and other liabilities 77,148 57,501 Lease liabilities 28,105 27,463 Payable and due to affiliates — 1,327 Deferred tax liability 18,751 20,767 Tax receivable agreement liability 380,937 457,523 Total liabilities 1,077,136 1,128,132 Commitments and contingencies (Note 13) Equity Preferred stock, $ 0.00001 par value; 250,000,000 shares authorized; none issued or outstanding — — Class A common stock, $ 0.00001 par value; 1,000,000,000 shares authorized; 116,282,605 and 115,090,787 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 1 1 Class B common stock, $ 0.00001 par val

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View this 10-Q filing on SEC EDGAR